Implementing an automated time and attendance system is an easy option for boosting accountability and reducing payroll fraud. These, however, aren’t the only advantages.
Time theft is still a major workplace issues. When asked in a Kessler survey, 30 percent of employees report falsifying time records. This happens through setting earlier arrival and later departure times or asking coworkers to punch in for them (buddy punching).
Using an attendance system can reduce the risk of such fraud. According to the American Payroll Association, 82 percent of the companies surveyed recently plan to introduce such a system, as well as new payroll software in the years to come. There are several reasons why attendance tracking makes so much sense.
Cost Reduction
Inaccurate time reporting can easily be terminated through the introduction of a high quality attendance tracking system. Absenteeism and tardiness can also be reduced significantly, helping companies save funds that would otherwise be lost through payroll fraud.
Such measures result in tangible financial changes. Companies that introduce an attendance tracking and time management system see a reduction in fund wasting that reaches 1,600 dollars per employee in the year after, an Axsium Group study suggests.
The use of an automated system will also minimize the risk of human error – another factor that can contribute to financial losses for businesses.
Higher Employee Satisfaction and a Higher Level of Productivity
A time and attendance system can boost productivity and even result in a higher level of employee satisfaction. The seamless process simplifies day to day operations and it also instills certain habits in employees. The reduction of absenteeism and tardiness can lead to a massive improvement in day-to-day processes, helping companies maximize output.
Such a modern system will also allow for flexible working arrangements – something that’s becoming increasingly important in today’s corporate world. Chances are that you have remote workers, part-time workers and full-time employees that travel a lot. A well-developed time and attendance system will allow for a lot of flexibility and effortless management through the use of multiple tracking options. Biometric data, smartphones and internet will be sufficient to stay in charge while giving workers an opportunity to work in the most effective way.
Legal Compliance
Manual time and attendance logging will usually result in errors that can cost your company a lot. Inaccurate record keeping interferes with legal compliance and it can eventually lead to fines or other sanctions. An automatic tracking system will maintain accuracy of the records and follow the standards set by authorities.
The right software will give you the right records and you’ll also get alerts about clocking that’s in contrast with company schedule or attendance policies. All of this information can help you enforce attendance policies and maintain legal compliance at the same time.
A Lot of Scalability
Implementing a time and attendance system right now doesn’t mean you’ll have to change everything to accommodate for company growth. Contemporary solutions are highly scalable and they’ll grow as your company changes.
A paper-based system could potentially work for a small business but it will be a complete nightmare for a larger organization. The risk of mistakes will increase significantly as the HR team becomes responsible for managing a bigger number of workers.
Automated systems can expand effortlessly and you can introduce new features upon necessity. There will no longer be need for the use of manual punch card systems. In the future, you may even introduce biometrics or touch screen inputs to simplify record creation and maximize the accuracy of the process.