Analyzing the Business Impact and Costs Associated With Employee Tardiness

Tardiness erodes company culture, can lead to time theft, and costs businesses billions every year.

21:09 05 May 2024

Tardiness erodes company culture, can lead to time theft, and costs businesses billions every year. The solutions: time tracking tools, a lateness policy, determining the root cause of the issue.

Arriving a few minutes late to work might seem harmless, especially if there is a legitimate reason. However, the consequences for a business can be severe if it happens regularly. The adverse effects go far beyond the particular employee's productivity during the first half of the workday. 

Consistent tardiness sends the message that being punctual is not a priority. Other employees might start arriving late too, and maybe even lie about it on timesheets. 

This will erode workplace culture and create conflicts among staff. If management does not hold a person accountable for tardiness, others might perceive favoritism. 

Tardiness and time theft 

Habitual lateness can also lead to time theft, where employees receive payment for time in which they have not worked. A worker who is frequently late can start taking advantage and show up even later. Employees might start leaving earlier or taking longer breaks, which can result in a loss of profitability and productivity for the organization.

Tardiness can disrupt workflow and compel other employees to cover for someone's absence. Data from the American Payroll Association shows that time theft costs up to 7% of a business's gross payroll every year, with employees stealing just over four hours a week on average. 

Employers can use tools like a timecard calculator or time-tracking software to prevent time theft and monitor punctuality. These tools can help companies identify absenteeism and chronic tardiness and address them before the problem gets out of control.

An effective time and attendance tracking system can help your company keep track of your workforce's work hours and find out if someone is frequently late to work.

Tardiness in 2024: the stats 

According to 2024 data, employee tardiness costs US businesses almost $61 billion annually. The average US employee is 35 minutes late per week, coming to a loss of $166 per employee a year. Lateness varies a great deal across states. The highest rates of tardiness are in New Hampshire and Maine, while North Dakota and Montana have the most punctual employees.

California suffers the biggest economic loss from tardiness: more than $10 billion per year.

A single offense isn't grounds for termination for most employers, of course. In fact, a third of respondents in a study said they were fine with their employees being late once in a while, but not if tardiness became habitual. 18% of employers accept lateness if the employee completes their tasks. Some businesses will consider disqualifying an applicant if it emerges they were chronically late for work at their current or previous job. 

According to a 2023 CareerBuilder survey, 16% of workers admit to being late at least once a week, and 29% are late once a month or more often.

Dealing with chronic employee tardiness 

Assuming tardiness has become an issue for you, rest assured that there are solutions. First, set expectations for punctuality right from the start to reduce the likelihood of having to confront employees who are always late. Inform employees of what is expected and the shift hours and make sure they are aware that you will take disciplinary actions if they are chronically late.

Use a tardiness policy to outline rules for punctuality, including your expectations for where the employees must clock in. 

Do not delay intervention when you notice a pattern of tardiness. Being proactive in addressing the issue is essential: you must set the tone that you will not tolerate this kind of behavior at work. 

Ask the employee why they are habitually late. Tardiness is more prevalent in work environments with low employee engagement or recognition. Work on solutions if their reasons for tardiness are genuinely concerning.

Offer praise if their behavior improves. Do so privately so you don't attract attention to the issue. Recognition is a great motivator, and you reinforce positive behavior when you compliment someone for being on time. 

FAQ 

Why are employees late to work?

Traffic is the most common reason, followed by personal problems and oversleeping.

What is the impact of employee tardiness?

Meetings are postponed or drawn out, impacting the schedules of the tardy employees' coworkers. Late employees can miss important tasks, adding tasks to a coworker's to-do list. This causes frustration and resentment in the workplace.