The biggest expenditure for any business operation is the management of resources; and human resources being the largest resource that any enterprise can have, an accurate and reliable time and attendance system becomes a necessity. Several types of time and attendance systems are available, including manual and automated. Although manual time and attendance systems are bit inexpensive compared to automated systems, it’s always advisable to go for the latter. Read on to find out why.
A manual timekeeping system requires employees to report their worked hours at the end of the day, increasing the chances of inaccurate time tracking. Also, there are other problems related to manual system such as illegible handwriting that makes the determination of the actual hours worked difficult, and ethics problem that arises when employees record incorrect hours to hide their inefficiency.
Automated timekeeping systems, on the other hand, collect the necessary data electronically by requiring employees to punch in and out over a secure web server. As the data is collected in real time, the supervisors can also be alerted about early or late punches as they happen, helping them in efficient management of human resources.
2. Increased productivity
In manual timekeeping process, the task of collecting time cards and re-entry of data into a payroll solution is tedious and laborious. In fact, it’s time consuming enough to take more than five hours of productive hours at the end of each pay period. With automated timekeeping system, these hours can be converted into productive hours. As the collected data is in electronic format, the transfer of data into payroll solution for payroll processing takes seconds.
An automated time and attendance system will help you save on your operational costs significantly by reducing human-generated payroll errors, eliminating time theft and overtime costs, and by increasing productive hours. Through an automated system, indirect cost savings related to workforce management can be achieved as detailed information about the time spent on various tasks will allow you to appropriately and proportionately allocate labor across your workforce.
With accurate timekeeping information at fingertips, it becomes easy to comply with various labor regulations. The compliance rules and regulations vary from state to state throughout the U.S.A. With the consistency in the timekeeping and the ability to quickly pull reports, the chances of being out of compliance becomes slim and very distant. This saves on penalty costs that you might have otherwise incurred due to noncompliance.
4. Streamlining operations
In manual process, human resource management needs to keep huge amount of paper-based employment and timesheet data for each employees. Also, massive amount of time is required to maintain these records. And the chances of inaccuracies and inefficiency in the process remains a distinct possibility. All these issues can be resolved with an automated timekeeping system’s employee self-service functionality, which can be found in most of the models.
5. Better company culture
When employees are aware of their performance, it empowers them to improve their performance – leading to positive impact on the company’s culture. As the engaged employees are enthusiastic, creative and optimistic, the company as a whole performs better.
The additional benefit of having a highly-valued company culture is the successful hiring and retaining of the best talent in the industry.