If there’s one thing you don’t want to mess up, it’s probably someone’s paycheck. Making sure your employees receive the right amount on their paychecks is not a task to be taken lightly, as people depend on receiving their paycheck in a timely and consistent manner and also likely budget for the amount they should be receiving. Going back and having to fix any mistakes related to payroll can be a complicated and sometimes costly process. Not only that, but it can lead to members of your organization losing trust in you, something that could erode your company culture and, worst of all, lead to people resigning or quitting. Suffice it to say that ensuring everyone gets paid the right amount and on time is one of the more important things a business has to do.
As a payroll services provider, we here at Payday HCM are very familiar with the importance of accurate payroll and the consequences of any mistakes. We’ve had plenty of potential clients approach us with their own horror stories of payroll mistakes, seeking out what the best solutions are. We want to be sure that no one has to go through any bad experiences when it comes to payroll, regardless of if they are our client. One of the best ways you can prevent any mistakes from slipping through the cracks in your payroll is by utilizing an accurate time tracking system.
So, in this article, we’ll go over the different methods for timekeeping and their various benefits and drawbacks. The systems we’ll go over in this article are:
By the end of this article, you’ll have a better understanding of the different timekeeping methods and which one might be a best fit for your business.
1. Punch Card System
Firstly, we’ll start with what is one of the first timekeeping systems: the classic punch card.
How the Punch Card System Works
The punch card system is one of the earliest methods used for employee clock-ins. It involves employees inserting a physical card into a time clock, which stamps the exact time on the card. This provides a tangible record of attendance that can be reviewed manually.
Punch cards actually serve an important role within the realm of computing, serving as one of the earliest forms of data storage. Punch cards would be adapted to work as a time clock in the late 1800s, typically with the days of the week listed on the card with the time being stamped into the card.
Despite its simplicity, this method requires employees to remember their punch cards daily. If a card is lost or damaged, employees may face difficulties proving their attendance, leading to payroll issues.
Advantages and Disadvantages
The punch card system is easy to use and requires minimal training, making it accessible for all employees. Additionally, the physical record it provides can be beneficial for audits and disputes over work hours.
Of course, as easy as physical punch cards are to operate, it is prone to errors and time fraud, such as buddy punching, where one employee clocks in for another. Furthermore, manually calculating hours from punch cards can be time-consuming and inefficient for payroll processing.
2. Time Clock Machine
Next, we’ll cover a broader category of timekeeping methods that involve a time clock machine, like an RFID badge or code.
How the Time Clock Machine Works
A time clock machine functions similarly to a punch card system but uses digital methods for recording. Employees either swipe an ID card, enter a personal code, or use an RFID badge to clock in and out. This automation helps streamline attendance tracking.
Unlike traditional punch cards, digital time clocks store data electronically. Nowadays, these types of machines are pretty prevalent in jobs where employees need to clock in. Oftentimes, these types of devices will need to be paired with software in order to store and keep track of employee clock-ins.
Advantages and Disadvantages
One major benefit of time clock machines is their ability to reduce manual tracking errors. Digital logs ensure accurate recording and can help to reduce disputes over attendance. Additionally, these machines are able to produce reports that can be imported into different payroll systems.
On the downside, these machines require hardware installation and maintenance, which can add costs. Employees can also share their ID cards or codes, making them susceptible to fraudulent clock-ins and buddy punching. Given that there are also a variety of different manufacturers of time clock machines, you may also run into issues receiving help if the machine has trouble working.
3. Biometric Clock-In
Now, we’ll get into one of the relatively newer methods of timekeeping, an evolution of the time clock machine.
How Biometric Clock-In Works
Biometric clock-in systems, as the name somewhat implies, use unique physical identifiers such as fingerprints, facial recognition, or retinal scans to verify employees. These systems ensure that the person clocking in is actually present, eliminating common time fraud issues.
Once an employee scans their biometric data, the system records their clock-in time and stores it in a secure database. This technology ensures that only authorized personnel can access the system. Like ID numbers or RFID badges, time clock machines will come equipped with the ability to utilize biometrics as a way of timekeeping.
Advantages and Disadvantages
Biometric systems can help to eliminate things like buddy punching and time fraud by ensuring that only the correct employee can clock in. They also provide highly accurate attendance records and remove the need for physical cards or PINs.
However, these systems come with higher implementation costs and potential privacy concerns regarding the storage of biometric data. Technical issues, such as fingerprint recognition errors, can also cause delays and frustration depending on where the timekeeping device was purchased or who it was purchased from.
4. Mobile Apps
Another relatively modern evolution in timekeeping, mobile apps are another option for businesses when it comes to time tracking.
How Mobile App Clock-In Works
Many businesses are turning to mobile apps for time tracking. Employees use their smartphones to clock in, often with added features like GPS tracking to confirm location. This is particularly useful for remote or field-based workers and, like biometrics, can reduce the need for extra resources like ID cards.
Clock-ins can be recorded in real time and synchronized with cloud-based systems. This allows employers to monitor attendance instantly and access reports from anywhere. Often times, these mobile apps also allow employees to request days off or manage their benefits from their smartphones as well.
Advantages and Disadvantages
Mobile apps can be very convenient, especially for companies that have remote and field employees. They can provide real-time attendance data and will typically integrate with payroll and scheduling software, improving efficiency.
However, even with how prevalent smartphones are, not everybody has one—businesses that go with this option should not only be sure it will work for their organization, but they should also have a secondary method just in case. GPS tracking can sometimes be inaccurate, and technical glitches or security concerns may arise with app-based solutions.
5. Paper Timesheets
Finally, we’ll go over a more rudimentary and simplified approach to timekeeping: paper timesheets.
How Paper Timesheets Work
A more traditional method, paper timesheets require employees to manually record their working hours and submit them for payroll processing. This method does not require any special equipment or technology.
Employees fill out their timesheets daily or weekly, noting their arrival and departure times. Supervisors then review and approve them before payroll processing begins. You can use actual physical paper timesheets or can opt for other digital options like an Excel spreadsheet.
Advantages and Disadvantages
Paper timesheets are cost-effective since they do not require expensive hardware or software. They are simple to implement and accessible to businesses with limited technological resources.
However, paper timesheets and manual timekeeping have a high risk of errors and time fraud, as employees can easily manipulate their recorded hours. Manual processing is also time-consuming and can lead to inaccuracies in payroll calculations.
Take The Time (And Effort) Out Of Timekeeping
Time tracking can be a painstaking process. Even with newer, more modern methods, keeping track of employee hours for any sized business can be a daunting task. This is especially true if you’re utilizing a time tracking system that doesn’t fit well with your business or lacks the flexibility or features you’re looking for in a timekeeping system. These are all things that you want to consider when looking at adopting a new time tracking system for your business. With the information provided in this article, you’ll have a head start on the kinds of options available to you and what might be the best choice for you.
Finding the best time-tracking option for your business doesn’t have to take a lot of time, though. Learn more about Payday’s timekeeping solutions and how we can help your business save time and stay on track.
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