April 19, 2018 | Time and Attendance | Posted by Ascentis Thought Leadership
What are the Benefits of Time & Attendance Systems
Time and attendance systems track employees’ worked hours, then exports these hours for payroll processing. As employees punch in and out, the system automatically calculates the hours worked along with associated pay, overtime, and accruals. This streamlines the payroll process and eliminates human error, resulting in correct paychecks each and every pay period.
Additionally, a time and attendance system enables an organization to analyze employee performance. This helps management achieve an understanding of workplace efficiency and can also be useful in times of employee appraisal or promotion.
Time and attendance systems have been used by businesses both large and small for tracking the efficiency of a workforce, employees’ adherence to attendance policies, and individual employee productivity. However, time and attendance systems not only help businesses grow, but they also benefit the employees as well. Read through for an in-depth look at the benefits of time and attendance systems, or use the links below to navigate the post.
- Establish an atmosphere of productivity
- Establish transparency
- Time management
- Avoid human error, achieve compliance
- Reduce costs
- Decrease absenteeism
- Improve employee satisfaction
What is a time and attendance system?In the past, time and attendance and payroll were handled manually by both employees and employers. Employees would punch a physical timesheet, which employers would then use to determine how much to write employees a check for. The problem is that humans are prone to making errors, and some employees may even take advantage of these systems to get paid more than they’ve earned. Today, automated time and attendance systems are the most common solution for both small and large businesses to prevent time theft and buddy punching.
One of the biggest benefits of time and attendance software is making sure your payroll is accurate. A time and attendance tracker takes the manual effort out of keeping track of time and attendance and includes features that can help improve productivity and efficiency. Time and attendance trackers start working as soon as an employee punches in, which means every minute is automatically tracked. At Ascentis, our Time software can be used to track labor hours to be billed to a client, while you can use our Payroll software to track employee hours and automate payroll.
Some of the most important time and attendance software features include the ability to track employee hours, which includes time like sick leave and PTO. You can also automate payroll, track wages, and organize employee hours to ensure your company payroll is in order and you’re in compliance. Compliance is one of the most important parts of running a business, which means you need to comply with state and federal laws and regulations. With a time and attendance tracker for enterprises, you can have peace of mind knowing you’re abiding by all local and federal regulations.
Benefits of time and attendance management systemsA good time and attendance management system is an important part of keeping employee hours and payroll on track. Payroll tracking software not only takes some of the hassles out of the payroll process but also helps to eliminate human error. Manual timesheets are prone to error, but time and attendance management systems allow employees to clock in and have every minute tracked automatically. So, what are the benefits of automated time and attendance records? Check out the seven great benefits we’ve outlined below.
1. Establish an atmosphere of productivityMotivation and open communication are two major factors that contribute to the success of an organization. A time and attendance system motivates the workforce to adhere to attendance policies and encourages workers to punch in and out correctly in order to avoid any errors with their paycheck. Moreover, because objective data is available, employees can evaluate their own work patterns and look for ways to improve their performance and contribute to the growth of an organization. By implementing a time and attendance system, a company can establish a workplace culture that includes accountability and productivity.
2. Establish transparencyTime and attendance tracking let employees know their strengths and weaknesses and thus recognize what to continue doing right and what areas need improvement. This also helps managers to begin conversations with their employees with supporting data in hand.
Transparency also builds trust between a business and its clients by providing information on employee time spent working for the client and specific projects. Clients don’t want to be overbilled, so they’ll appreciate the peace of mind that comes with automated time tracking.
3. Time managementTime tracking supports employees in managing and budgeting their time. Employees will know where they are spending their time and which tasks take the most time. From there, employees can budget their time accordingly to accommodate each and every essential project.
4. Avoid human error, achieve complianceAn automated time and attendance system benefits both employers and employees by streamlining time calculation and avoiding human error. Calculating manual timesheets is a time-consuming task, especially when there are errors that need to be rectified. Moreover, errors may open up a company to compliance issues. In fact, the U.S. Department of Labor’s Wage and Hour Division collected over $1.4 billion in back wages from minimum wage and overtime violations in the last five years, showing how common and costly non-compliance can be. A complete time and attendance software tracks and highlights these errors, allowing adjustments to be made quickly and easily. This eliminates any complications that may arise between employees and employers in cases where inaccurate timesheets lead to incorrect paychecks.
5. Reduce costsOne of the most significant benefits of using time and attendance software is the fact that it can save your business money. You don’t want to pay employees for hours they aren’t working, which can be a real problem if employee hours aren’t tracked automatically. Humans are prone to mistakes, and some people may even use fraudulent practices to make it look like they worked more hours than they actually did. With automated time and attendance tracking, you get accurate reports that can help save your company money.
Accuracy is also important when it comes to tracking time like extended breaks, employees being late, and unauthorized overtime. As a business owner, you need to make sure your employees are working the standard amount of hours without taking extended breaks or lunches or costing you additional money in unauthorized overtime. With automated time and attendance software, you can easily do that.
6. Decrease absenteeismAs bad as it is for an employee to show up late, there’s nothing worse than having an employee not show up at all. While an HR app can help with some aspects of running a business, decreasing absenteeism is hard to achieve without accurate time and attendance tracking. When an employee doesn’t show up for work one day, it can decrease productivity, lead to overtime pay for other staff, and make other employees less engaged. In order to decrease absenteeism in your company, it’s important to understand what causes it in the first place. Oftentimes, absenteeism in the workplace is caused by childcare or illness, but it can also be caused by burnout.
One of the benefits of automated time and attendance systems is the fact that they can help reduce employee absenteeism by making it easier for you to manage schedules to make sure employees don’t get burnt out. Some software even allows employees to request paid time off through a website that they can access on their phone or home computer, which makes it even easier to avoid burnout. Plus, time and attendance software allow you to create schedules that work for your company and your employees.
7. Improve employee satisfactionYou need to keep your employees satisfied if you want them to work hard for you, and there are a lot of little things that go into that. One of the best things you can do to increase employee satisfaction is to make sure people get paid on time. The problem is, that’s not easy if you have to sort through physical timesheets, figure out how much you owe each employee, and write them each a check. When you couple automated time and attendance systems with HRIS software, you can easily keep track of employee hours and make sure those employees are getting paid as soon as possible.
A time and attendance software solution can also allow employees to view information such as hours worked and PTO, which helps to improve employee satisfaction.
Increased employee satisfaction means increased productivity, which can save your business money and help it grow. When you consider the cost of HR software and automated time and attendance systems, there’s no reason you shouldn’t be investing in technology that can help you automate your business.
The bottom lineFrom meeting US Department of Labor requirements to making sure you’re paying employees the right amount of money on time, there are lots of benefits of time and attendance systems. If your business isn’t taking advantage of automated time and attendance solutions, you need to find a software solution that works for you. Not only will you save money with automated time and attendance systems, but you also save time that you can invest in growing your business and keeping your employees happy. If you own a business or manage an HR department, Ascentis has all the HR software solutions you need to keep your business growing and succeeding. Our Time and Attendance software can help you save time and money while improving and simplifying your daily business operations.
With more than 35 years of experience in providing Software as a Service (SaaS) solutions, Ascentis thought leaders have become a respected source for insights, tips, and innovations in the Human Capital Management (HCM) space.