The Cost of Employee Lateness To Companies

“Being on time for work is a virtue.”

Lateness at a personal level is largely between friends with little to no dire consequences. But in business * the corporate world, as an employee, punctuality takes on a totally new significance. Being late or behind schedule carries intangible costs & actual huge financial implications.

Breakdown of Lateness to No. of Workings Per Year:

When a worker is habitually late by just 10 minutes a day, it is equivalent to giving him/her 5 extra periods of leave.

No. of Minutes Late Per Day X No. Of Workings Days In A Year:

10 X 250

= 2500 minutes

(Assume 250 Working Days Per Year)

Next, Convert This Figure To Number Of Working Days In A Year:

No. of Minutes / 60 / 8 

= 2500 / 60 / 8

= 5.2 days

(Assume 8 Hours In 1 Working Day)

Convert the No. of Late Days In A Year To Dollar Value:

Now that you know the costs to the company, let’s take a step further & convert this to dollars and cents. 

Assume this employee is drawing $2,000 per month, with 20 working days per month.

Cost of Employee Lateness To Company:

= Monthly Salary / No. of working days per month X No. of days late

= $2,000 / 20 / 5.2

= $520

Impact To Company

We have now established that the costs of one worker who is consistently late for a year would be $520 a year. 

But this may not be a significant amount for some companies. We get it, nothing wrong with that. 

However, let us scale up the values so the true impact can be felt:

In a company with 100 employees, if everyone is late by an average of 10 minutes per day, this costs the company $52,000.

In a company of 1,000 employees, if everyone is late by an average of 10 minutes per day employees, the cost is $520,000!

Your Thoughts?

Being late by just 10 minutes may appear to be a trivial matter. After all, there are many reasons for this – heavy traffic, late nights, etc.

It’s only too easy to think lightly of it & ignore the situation. But when the company examines its’ operational costs from a holistic viewpoint would the true cost of lateness to the company be revealed. 

Over to you: What is the cost of lateness for your company? 

In the next article, we will be sharing on how to effectively capture & manage workplace attendance (including remotely) & the possible ways to reduce lateness, & each of their pros & cons.

Stay Tuned.

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