Is Your Time and Attendance Solution Delivering Results?
Is Your Time and Attendance Solution Delivering Results?

Is Your Time and Attendance Solution Delivering Results?

Not all time and attendance solutions are created equal. Perhaps you’re manually keeping track of time cards or your automated time and attendance system isn’t living up to your expectations. Either way, it might be time to make a change. Modern time and attendance software should deliver results—mainly savings and accuracy—for any human resources department.

Accurate Time Tracking Leads To Labor Cost Savings

In any organization, employees usually are both the largest expense and the largest asset. Maintaining control of labor costs is critical to the overall bottom line and it all starts with accurate time tracking.

According to the American Payroll Association (APA), organizations can experience anywhere between a 1% and 7% clerical error rate when totaling employee time. So, if you’re dealing with a million-dollar payroll and average 5% error when entering information into your payroll system, that’s a $50,000 mistake. Multiply that by however many pay periods you have in a fiscal year, and that adds up to quite a chunk of change.

A Time Clock Integrated With Your Payroll Software

A modern automated time and attendance solution should fully integrate with your payroll system. This eliminates the need for duplicate data entry or importing time spreadsheets, thus saving you time and reducing clerical errors. Any new hire data will transfer seamlessly from the onboarding process, and labor hours should automatically flow to payroll.

Reduce Time Theft and Buddy Punching

Time theft and buddy punching are two of the biggest infractions against inefficient time and attendance software. Time theft is simply that—employees “steal” time by claiming to be on the job longer than they are in reality. For instance, an employee writes down that she started her shift at 8:00 a.m. but really didn’t arrive until 8:15 a.m.

Buddy punching occurs when an employee is running late or leaves early and asks a co-worker to physically clock him in or out for the day. According to the APA, businesses lose $373 million each year due to buddy punching.

buddy punching impact

A credible time tracking solution will reduce time theft if not prevent it all together. To start, consider using a biometric time clock with fingerprint reader in order to eliminate buddy punching. At the very least, any modern time clock should include wi-fi connectivity, PIN entry, badge/proximity entry, multiple languages, badge reader and printer support.

Your timekeeping solution should also contain a mobile app that allows employees to punch in/out, enter daily hours, transfer departments and request time off work. It also allows managers to handle PTO requests and attendance exceptions from his or her phone.

If you’re concerned about employees taking advantage of such a convenience, consider using geo-validation. This allows an employer to establish parameters in regard to where an employee physically must be in order to punch in/out. The location is documented for manager review.

Keep an Eye on Compliance

Wage and hour compliance is critical, especially if you have hourly employees. Your time and attendance solution should keep accurate track of labor hours and overtime, alerting you to any possible Department of Labor violations. Make sure the system offers compliance checks for ACA, FLSA, IRS, unions, EEOC and OSHA.

Recording every hour worked by each employee and maintaining those files is important not only for compliance but also to protect the company from employment lawsuits. Remember, the onus is on the employer to prove the hours worked and each employee is paid accurately. If one employee claims he wasn’t paid correctly, the burden of proof is on you.

wage and hour compliance

Improve Employee Productivity

When selecting time and attendance software, keep the employee experience in mind. A system that offers intuitive self service will give employees convenient access to their attendance information and allow them to not only punch in/out but also request PTO or easily find a shift replacement if necessary, which frees up your time and your inbox.

It also helps employee morale when everyone is paid accurately. If someone works overtime, the time tracking software should take note and pay that individual appropriately. Just as important, you don’t want to underpay anyone. Time and attendance software will help ensure pay accuracy.

An automated attendance management feature allows you to create a disciplinary policy that triggers certain HR actions (like a verbal or written warning) when employees reach certain markers (unexcused absences, repeated tardiness, etc.). You won’t have to worry about keeping track of these incidents manually or with email.

Enhanced Reporting and Scheduling

Scheduling, reporting and exception information should be right at your fingertips. Personalized dashboards for you and your supervisors that give the data you need at a glance should be standard.

This includes the ability to view a complete pay period as well as today’s hours and overtime status. You should have the power to fix time cards easily and track time so you can pay right after a shift if necessary.

To help manage overtime expenses, your time and attendance solution should break down the cost by department, manager, location, etc., as well as predict your expected spend for the rest of the year. It should also be able to integrate with your general ledger.

Of course, any time and attendance software works best when used with a unified human capital management platform. A modern HCM solution integrates every aspect of people management, from the way you recruit and onboard to the way you develop, pay and retain your team. With a single source of truth for all employee data, your everyday HR process is simplified—you’ll never have to toggle between programs or enter the same data over and over again.

Check out Paycor’s Time ROI Calculator to see how we can help make your HR more efficient and impact your bottom line.


time and attendance software

More to Discover

Franchise Payroll: Answering Tough Questions

Franchise Payroll: Answering Tough Questions

It’s no secret that payroll for franchisees and franchisors can be a hodgepodge of confusion. Who’s responsible for payroll? Often, it’s a toss-up. With so much confusion it’s easy to fall victim to major fines and penalties. That’s why it’s so important to get payroll right. If you’re one of the lucky few (a franchise with a built-in payroll provider as part of the franchise agreement), great! But if not, you may be left with tedious HR tasks that take your focus away from your customers. Before we dive deeper, let’s identify the players in the game. “Employer” “Franchisor” and “Franchisee” Who’s Who? Owning a franchise is similar in many ways to running an independent small business, such as a restaurant or dry cleaners. One of the...

SaaS Payroll: 6 Tips to Find the Perfect Solution

SaaS Payroll: 6 Tips to Find the Perfect Solution

Software as a Service (SaaS) is the term used for software that’s delivered and used totally online or in the cloud. As more businesses turn to online solutions to manage their workflows, do accounting, etc., it should be no surprise to see that payroll processing is no exception. From tax-filing and employee self-service to data security and compliance management, SaaS payroll automates routine tasks and ensures accuracy, so business leaders can focus on what really matters, improving the bottom line. If you’re in the market for an online payroll system, you’ll need a sharp eye to find the perfect match for your organization. Keep in mind, not all payroll software is created equal. Whether you want to go with a bare-bones solution or...

10 Must Haves for HR SaaS

10 Must Haves for HR SaaS

Software as a Service (SaaS) is the term used for software that’s delivered and used entirely online or in the cloud, meaning that no software is actually installed on employees’ hard drives. More and more businesses are turning to cloud-based solutions to manage their workflows, run accounting and control their supply chains, often as part of a larger enterprise resources planning (ERP) solution. Probably not surprisingly to most, the HR function is no exception. A SaaS human resources solution can enable small and midsize business owners to control every aspect of their employee management tasks online. And in doing so, HR departments can eliminate mundane and error-prone manual tasks such as wrangling multiple spreadsheets and...

Paid Sick Leave Laws By State

Paid Sick Leave Laws By State

Everyone, at one time or another, has worked with that person who comes to work with a bad cold (We’re hopeful it wasn’t you). Not only is it annoying, it also jeopardizes the health of other employees. But have you ever stopped to think that maybe that co-worker came to work because they didn’t have enough paid sick time available and wouldn’t get paid for a missed day or two? Here’s a high-level overview of states’ paid sick leave laws for private sector employers. Keep in mind this list is not inclusive of every state’s laws; there are many more nuances to understand and comply with. Alabama Paid Sick Leave Laws No state sick leave laws. Alaska Paid Sick Leave Laws No state sick leave laws. Arizona Paid Sick Leave Laws Covered...