Consequences is the one word solution.
I've run multiple businesses, and I've fired people for "attendance" issues. Tardy is not as bad as a no show. No call, no show, is grounds for termination in my book.
It really depends on your biz. Coffee shop? Restaurant? Call center? IT company?
But in all cases, you need to have FIRM consequences for being late or not showing up. Either they get lower preference in shifts, worse work to do, write ups that will delay promotion, or some kind of SOMETHING (anything), that will be an incentive for them to get to work.
If you can't hire people in today's economy, you're not paying enough. Maybe they know it and are going elsewhere....Tough to really comment without knowing your type of business....details?
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