True Costs of Rounding Rules

Have you ever wondered what certain rounding rules would cost you? Let’s take a look at the following example.

Rounding-Rule-Costs

What are the takeaways? 

  • Rounding will cost more if minutes are rounded backwards for arrival times and forwards for departure times.
  • To determine right rounding rule, identify whether employees are more likely to work more or less than their actual schedules. Do this by capturing both times and monitoring the discrepancies over a period of time for several groups.
  • Be sure to sample from a large pool of employees, but be aware of patterns that may arise in certain worker groups, departments, or locations.
  • Understand your purpose for rounding rules. If you are giving a rounding rule because employees are commonly 15 minutes late, why not consider pushing the start of the shift back 15 minutes? External issues, such as traffic, could be impeding attendance.
  • Whatever rounding rule you choose, be sure that it is fair and consistently used. It should not clearly benefit employer or employee exclusively.

Here’s another quick overview for our example.

Rounding-Rule-LL2

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