Are you still tracking employee hours manually? If so, it’s time to invest in time and attendance software. Without it, you could be dramatically cutting into your profits. One report found that professional service businesses in the U.S. lose upwards of $100,000 annually simply due to inaccurate time tracking.
If that’s hard to believe, consider all the potential pitfalls of manual timekeeping:
- Clerical errors
- Lost productivity for HR staff
- Time theft
- Time leaks
The rise of remote work has complicated the issue further as companies figure out how to keep employees productive and engaged when not working in the office. All of these factors drive up costs, and they compound over time.
What’s the answer? Digital transformation makes it possible to automate the timekeeping process, manage costs, and mitigate risks. Let’s look at some pros and cons of using software to manage time and attendance.
The Pros of Time and Attendance Software
As of 2019, 38% of companies in the U.S. still tracked employee hours using paper punch cards and spreadsheets. When that process is automated, however, companies can reclaim thousands in lost wages and productivity. Here’s how.
Accuracy and Accessibility
Clocking in and out online makes it easier for employees to accurately log hours in the field or remotely if they are working from home. When they don’t have to clock in and out manually, employees will be more likely to log hours accurately rather than making a guess if they forgot to punch in. For example, Workzoom’s time and attendance module accommodates time clocking via a web browser, a mobile app, or a centralized facial recognition device so team members can easily clock in anywhere.
Schedule visibility
Tracking employee time in a single source of truth allows managers and employees to view schedules in real time. If an employee calls in sick, the schedule can be updated immediately and the shift easily reassigned. With a tool like Workzoom, managers can also see absences and arrivals across departments, identify areas that are understaffed, and gauge productivity impacts based on personnel gaps.
Payroll Integration
Transferring time and attendance data to payroll manually is a tedious process. Automating that process can save hours of work each month. For example, PDS Vista’s payroll module integrates with time and attendance software and automatically inputs data to payroll for processing.
Mobile Capabilities
The easier it is to track time, the more likely it is that employees will do so consistently and accurately. Mobile capabilities allow employees to clock in and out from any workspace, whether they are working from home, in the field, or in a different location than usual.
Some time and attendance tools offer additional functionalities that support better communication around absences and leave. For example, with an app like TeamSense, employees can notify managers about sickness via text rather than calling in and leaving a voicemail. The app automatically marks the employee absent, tracks attendance history, notifies the manager, and displays departmental absences in a dashboard for viewing at a glance.
FLSA Compliance
Time tracking software makes it easier for companies to comply with FLSA record-keeping requirements, including hours tracking, history, and leave requirements.
The Cons of Time and Attendance Software
Unfortunately, employers have always had to monitor time and attendance records for intentional embellishments. The right time and attendance software can help, but it may also open doors for those attempting to cheat the system.
- Employee Time Theft – Online clock-ins can make it easy for employees to clock in earlier or later than the times they actually worked. For example, an unethical employee may clock in from a personal computer at home before driving in to work, effectively padding their hours.
- Buddy Clock-Ins – Even if you use a centralized on-premise solution, some employees may tag team with a buddy who clocks in for them. This is one of the most common time theft strategies, and it can cost thousands. Location-enabled time tracking software can help crack down on buddy clock-ins using GPS and geofencing.
- Time Rounding – If an employee forgets to clock in, they may estimate or round their hours. This problem should be addressed by HR with clearly stated time and attendance policies.
While digital time tracking can make it easier for unscrupulous employees to game the system, the problem isn’t the software. Time theft, buddy clock-ins, and time rounding can all happen with manual systems as well. With a digital solution, however, it is easier for HR to monitor activity, ensure accuracy, and address problems early.