What is "Attendance Process"? How does it work? Why is it Important?
The Attendance Process is an automated system that calculates employee attendance each month, ensuring all records are accurate and aligned with the company’s policies before payroll is processed. It accounts for working days, weekends, holidays, leaves, and Loss of Pay (LOP) days for each employee. Once finalized, this data syncs with the Leave and Payroll modules to streamline payroll accuracy and compliance.
How Does the Attendance Process Work?
The system automatically reviews employee attendance, checking for unapproved absences and applying any necessary leave deductions or adjustments. It follows the company’s attendance hierarchy and policies, such as the "sandwich policy" for consecutive absences around weekends or holidays. This ensures all attendance records are finalized before payroll is processed, keeping data consistent and accurate.
Key Features of the Attendance Process
Automatic Attendance Calculation:
The system automatically calculates working and non-working days (like holidays, weekly offs, and approved leaves) for all employees.
Attendance and Leave Policies:
It ensures that the company’s leave policies are followed. If an employee is absent without a leave request but has available leave, the system will automatically deduct leave during the attendance process.
Handling Loss of Pay (LOP):
Absences without leave or attendance regularization are marked as LOP, which impacts payroll, as employees are not paid for these days.
Syncing with Leave and Payroll Modules:
Once attendance is finalized, the data syncs seamlessly with the Leave and Payroll modules, ensuring that all leave and LOP days are reflected in payroll calculations.
Attendance Hierarchy:
The system can prioritize leave deductions based on the company’s hierarchy (e.g., using casual leave first), ensuring policies are followed.
Sandwich Policy:
If the organization follows a sandwich policy, the system will apply it. For instance, if an employee takes leave on a Friday and Monday, the system will count the intervening weekend days as leave too.
Example Scenarios
Scenario 1:
An employee was absent for two days but did not submit a leave request. The system will automatically mark those two days as absent. If the employee has a leave balance, the system will deduct leave when the process is run. (this happens only if hierarchy is set in attendance template)
Scenario 2:
An employee takes leave on Friday and Monday, with the weekend in between. If the company follows a sandwich policy, the system will deduct four days of leave: Friday, Saturday, Sunday, and Monday.
Why Is the Attendance Process Important?
The attendance process simplifies attendance management by automating calculations, approvals, and syncing with payroll. It ensures that:
- Attendance data is accurate and aligned with company policies.
- Leave deductions are correctly applied.
- Payroll is processed based on accurate attendance data.
This automation makes managing attendance, leave, and payroll much more efficient for HR teams, reducing manual errors and improving overall workflow.