Every business has a responsibility to ensure each employee is paid according to his/her hours worked. Utilizing an honor code to track worker hours can assume a lot of risks and may cost an organization thousands of dollars.
Performing manual payroll is still an option for some, but it is ripe for human error and requires valuable resources from the HR department.
Thankfully, modern technology has produced web-based time tracking software systems that are saving time, decreasing inefficiencies, and improving workflow processes.
Armed with the analytics provided by these time clock solutions, owners are making quicker decisions that maximize efficiency and hold each employee available.
Read ahead to learn about the different time clocks available and how they can benefit every business.
The Advantage of Using a Web-Based Time Clock
Organizations across all industries are beginning to use web-based time clocks that track employee time and projects whether in-house or off-site.
They are typically cloud-based solutions that provide a way for users to clock in through a mobile phone app or a terminal on the job. Tracking employee time software options include-
- Punch Card Clock- An employee uses a time card to put into a piece of hardware that prints out a receipt of the punch-in data. These clocks track and manage total hours worked for each employee, helping HR perform payroll later.
- Digital Clock- Instead of putting in a punch card, workers use a card with a magnetic stripe. It goes through a machine and records the clock-in data. Electronic touch pads that require a personalized code are also another form of a digital clock.
- Time Station Software- This time clock allows workers to punch in through their computer or laptop. Usually, businesses choose a centralized computer for every employee to clock in each day. The information collected can also be integrated into a payroll software system.
- Biometric Clock- These clocks use a human trait such as a fingerprint, portion of the face, or handprint to verify a person's identity. The scanner or mobile app takes an image of the finger/face and matches it to a pre-stored image in a database.
If implemented properly, a web-based time clock will save time, help better allocate resources, and increase worker productivity across the organization.
Other benefits of utilizing a web-based time clock include-
1. Stop Time Theft Before It Happens
Time spent can be money lost. Therefore, it's important to use a software employee scheduling system to ensure nobody is wasting it or committing time theft. Time theft refers to
- Extended breaks
- Leaving early or arriving late
- Taking unauthorized overtime
- Using the internet for reasons other than work
- Sleeping on the job
- Buddy punching
This illegal practice can cost businesses thousands of dollars in overpayments a year. If the proper steps are not put in place to stop time theft before it happens, any organization is susceptible to employee time theft.
Utilizing a biometric time clock that verifies an identity by analyzing a human characteristic such as a fingerprint will stop time theft in its tracks.
Because it's impossible to replicate another person's traits by utilizing a self-service software system, it will be virtually impossible for a worker to commit time theft. Other time clocks also require a pin or use a security camera to verify that the person clocking in is who he/she claims to be.
2. Increases Productivity
An employee self-service solution can streamline processes that would otherwise take too much time to complete. Because data is inputted and stored in a software system that connects to payroll databases, HR clerks can perform tasks in minutes that would otherwise take hours.
The HR team also no longer has to spend time worrying about scheduling time off requests or estimating bonus pay. Everything is automatic and systemized, allowing HR clerks to spend more time doing other areas of their jobs.
Because managers can use a time clock system for project management and task management, they can see how long each worker is taking to complete all areas of their work.
Managers can work with inefficient employees to boost their productivity and also reward the productive ones to help boost morale. As a result, productivity will increase and everyone will learn to work more efficiently.
3. A Bigger Return on Investment
Some small business owners are nervous about spending money on a web-based solution when they have been performing manual payroll for years. Though it's understandable to be wary of implementing a new system, the return on investment is well worth the risk.
Businesses of all sizes will save money and time by cutting back on inefficient workflows, boost productivity, and hold employees accountable for their time spent working.
The accuracy of data collected will also save money because companies won't have to worry about accidentally overpaying employees for time not worked.
They can also rest assured that clients will be billed exactly for the number of hours put into the job, and there is data to prove it to the customers. By not utilizing an optimized software system, it's easier to lose money and bill improperly over time.
4. Instant Reporting and Data Analytics
Through an automated time clock app, businesses can collect accurate data that tells a story about how everyone in the workplace is spending their time.
Users can generate customized reports that present data in the form of visuals, such as charts and graphs. This makes it easier for the management team to gain a full view of what's happening in the business and how long it takes to complete a project.
Businesses use an automatic attendance system to deliver reports to customers who want to know how their money is being spent to complete a project.
Users can break down a project into time segments to display how long it took to complete each step of a task. This will give more accountability to the business and make the client feel more comfortable paying for his/her services.
In conclusion, here are the key takeaways to remember about using a web-based time clock and time attendance system-
- A web-based time clock tracks worker time to ensure payroll accuracy and streamline workflow processes.
- Types of time clocks include punch card clocks, digital clocks, time station software, and biometric clocks.
- Benefits of employee scheduling software includes preventing time theft, increasing productivity, a bigger return on investment, and instant reporting and analytics capabilities.