To let a user assign people to attendance policies, make sure they have both of these permissions:
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People’s data > People > Attendance Policies > Edit selected employees' Attendance Policies sections
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Features > Time & Attendance > Settings > Manage attendance policies


Example case
You want the UK HR team to assign attendance policies only to UK-based employees.
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Create a custom Permission Group.
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Add the UK HR team as members, either with automatic conditions or by selecting them manually.
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Grant them the permissions to:
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Edit selected employees' Attendance Policies sections
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Manage attendance policies
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Under People’s data > Access data for, define who they can manage.
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Use a condition like 'Site - Equals - UK' to limit access.