Posted On: February 1, 2007, 12:21 pm CST

Posted By: Jacki

Consider using attendance as a significant component of your incentive plan. "Planned absences" are okay—meaning, those that meet a set standard, such as 5 days notice to supervisors. In the face of that standard, which would include impromptu sick leave and late arrivals or early departures, decide what level of absenteeism is acceptable. Perhaps 8 hours is the limit...or even less than 8 hours. The less one is absent, the higher the incentive. For example: less than 2 hours absenteeism = 100% of what is made available for that component of the incentive; 2 to 3.99 hours = 75%; 4 to 5.99 hours = 50%; 6 to 7.99 hours = 25%; 8 hours or more = 0%. Your management team may need to decide upon this standard in light of your business model and employee culture.

One just needs to weigh out what percentage should be applied to the attendance component of the total incentive to keep staff working productively, rather than just showing up for the job. Let's say that the entire incentive available to an employee is $400 per month. Further, let's say the attendance component equates to 30% of that $400 possible dollars, or $120. (The remaining 60% goes to other key aspects of performance.) Thus, carrying out the percentage formula above in real dollars: less than 2 hours absenteeism = $120; 2 to 3.99 hours = $90; 4 to 5.99 hours = $60; 6 to 7.99 hours = $30; 8 hours or more = $0.