It is surprising just how many organizations rely on manual systems to manage employee time and attendance. Most have migrated to an electronic payroll system to replace old manual systems, but the tracking of attendance is still a manual process.
A recent survey in the USA by the American Payroll Association, concluded that only 65% of the organizations that took part in the survey used attendance software to record time and attendance. Of these 65%, some were in the process of migrating to an electronic system.
If your organization still has a manual time recording system in place, then it is important for you to understand the many benefits that time and attendance software can bring to you. When you are evaluating any new system, it is important to understand the improved efficiency and cost savings that can be accrued.
You Will Benefit From Considerable Cost Savings
With a manual system, there are always going to be errors with inaccurate time reporting that are probably costing your organization a lot of money. The abuse of time and absenteeism are difficult to control with a manual system.
The implementation of time and attendance software will put a stop to inaccurately reporting the time that an employee spends at work. It will also prevent “buddy punching” the time clock, and go a long way to reduce the abuse of work time.
There was a study performed in 2010 by the Axsium Group in the USA, on the cost savings per employee when an automated attendance system was implemented. The survey concluded that an average of $1,614 could be saved per employee by the introduction of an efficient system. Think about how much your organization could save with this software.
There Are No Human Errors
If you operate a manual time keeping process, how accurate do you think it is? Wherever humans are involved in a process there are bound to be mistakes made. These mistakes can be extremely costly if overpayments to employees are made based on these errors.
With an automated time and attendance system there is a minimal risk of mistakes being made. Time records will be extremely accurate, and any human intervention will be recorded so that tracking can be performed.
Considerable Time Will Be Saved
When you analyze the amount of time that it takes to operate and manage a manual attendance system you will be in for a shock. Time cards and / or manual time sheets will need to be processed and schedules created. The authorization of paid time off and the recording of overtime claims also have to be processed. Payroll is created from this information.
You will save a lot of administration time by introducing attendance software. All of the above tasks will be done automatically, and the software can seamlessly integrate with your payroll system. You can then direct your administration resource to perform other necessary work, or save money by reducing staff numbers in this area.
Improve The Management Of Flexible Working Arrangements
Most organizations will want to take advantage of flexible working arrangements such as employees working from home, or even being based in different locations throughout the world. Then there are employees that are out on the road in a sales or other operational capacity. It can be a real challenge to manage their time and attendance with manual systems.
With a software based attendance system, clocking in or out of work can be done using the Internet or via a private network. The use of biometric terminals and desktop readers is possible, and smart phones and other devices can be used for clocking.
Effortless Shift Management And Operational Scheduling
In the manual world, schedules need to be created to manage operations and allocate shifts. This can be very time consuming, and is prone to errors that can lead to confusion about which projects employees are allocated to. Disputes between different departments in the organization can then result.
A good time and attendance software program will enable managers to develop complete schedules, and ensure that all tasks have the correct hours assigned to them. It will be easy to manage the allocation of employees to different departments, and manage all swaps in shifts.
An attendance software system has the added benefit of being able to easily forecast workloads by department, and allocate the necessary resources. Department budgetary requirements can also be accurately forecast.
Ensure Legal Compliance And Organizational Policy Adherence
The FSLA has some pretty tough laws when it comes to time and attendance, and you do not want to be defending a costly lawsuit because of errors in a manual system. There have been cases where these errors have never been discovered, and it has cost organizations a lot in legal fees and fines.
It is likely that you will have policies relating to time and attendance, and these can be difficult to enforce with a manual system. If these policies are not properly enforced, your organization can be subject to time stealing which will have a significant cost.
The investment in a high quality attendance system will be justified, as it will flag up to management any inconsistencies when clocking times do not match schedules that have been planned. The enforcement of organizational policies is a lot easier, as specific reports can be produced that will prove whether time and attendance policies are being adhered to or not.
Flexibility And Efficiency With Report Creation
The effectiveness of your management team is only as good as the information that they are working with. It can take hours, days or even weeks to create the required reports with a manual system in place.
Time and attendance software will enable you to create specific reports, and run them off very quickly. You will be able to schedule regular reporting of planned and unplanned absences with a few mouse clicks. If the relevant information has been recorded by the system, then a report for a specified time period can be easily created.
You are in total control here. Individual managers can create reports in seconds about their team members and take corrective action if there are any issues flagged. The production of these reports may not even be possible with manual systems.