Industry estimates place intentional and error-driven time theft in the range of 1.5 percent to 10 percent of gross payroll. This costs U.S. businesses hundreds of billions of dollars each year. Time theft is a real concern for many businesses, especially in the construction and manufacturing industries where clocking in and out is essential. Do you manage a labor force that keeps track of their own time? If you do, you may struggle to help them accurately keep track of their hours. You want to give them the benefit of easy employee self-service software. Yet you also want to avoid the many pitfalls that are inherent in some of these systems. If this sounds familiar, utilizing biometric timekeeping can improve your labor management process.
Benefits of Biometric Timekeeping
Biometrics is defined as the science of measuring physical and behavioral characteristics that uniquely identify individuals. When incorporated into timekeeping, it allows HR managers to ensure that employees can clock in and out easily from anywhere. To verify their identity, biometrics can use facial recognition, thumbprints, voice recognition to eliminate mistakes or ‘buddy punching.’
Labor Management Benefits
It Virtually Eliminates Time Theft
One of the most significant sources of time theft is ‘buddy-punching,’ which occurs when one employee clocks in for another. Biometrics eliminates this type of time theft by verifying identity when the employee clocks in or out. This will save your organization money and remove the need for time clock supervision or managerial review and approval of timecards.
It Creates Accurate Time Records
When employees self-report time, they may or may not be reporting accurately. Whether they are purposefully inflating numbers or simply don’t remember their exact times, self-reporting is notoriously unreliable. Biometrics ensures that time is kept honestly and accurately. This makes it much easier to conduct payroll and to manage projects.
It Creates an Audit Trail
If there is ever a labor dispute lodged by a client or an employee, biometrics can be your best friend. By creating a non-repudiated audit trail, there will never be a question of when an employee started or finished on a project. Business risk is reduced by providing a verified trail that is compliant with federal legislation and company policies and regulations.
It Is Cost Effective
The cost of biometrics, while expensive when it was first introduced, has fallen significantly due to improved technology and widespread use. This makes the system affordable for businesses of nearly any size. When compared to the loss of revenue caused by buddy-punching, biometrics are a practical investment that will save your business money in the long run.
It Provides Accurate Real-Time Labor Data
Through the simultaneous confirmation of time and identity, this system provides an up-to-the-minute picture of what is happening with your labor force. This allows you to effectively manage your employees, evaluate workflow, and proactively identify red flags. In addition, it can save on avoidable overtime costs as labor management becomes more efficient.
Employee Self-Service Benefits
It Increases Employee Morale
When employees worry about their time being tracked accurately, it can affect employee morale. With biometric timekeeping, this fear is eliminated. Employees know that their time on a project is accurately tracked, and this will be reflected on their next paycheck. This peace of mind boosts morale and keeps their focus on the project at hand.
PC-Based Clocking is Easy and Efficient
Biometric timekeeping is a method of PC-based clocking. Employees can clock in from their PC with no software needed. This allows both on-site and off-site employees to clock in and out with ease. Employees appreciate the ease with which they can keep track of their time on their own devices.
Employee Can Communicate with HR Managers
Scheduling leave, explaining absences, and taking vacation time can be a pain for employees, especially if they are rarely on-site. To efficiently manage their schedules, employees can utilize this system to communicate with ease.
More and more HR managers are realizing the benefits of having a mobile workforce and are adopting biometric timekeeping at a record pace. In fact, the market estimates indicate that nearly 400,000 biometric devices have been deployed to date worldwide. Biometric clock users consistently report significant reductions in payroll and overtime. This explains why businesses are incorporating them in rising numbers. Effective labor management can have a huge impact on your business and your bottom line. With biometric timekeeping, you can ensure that your team is accurately keeping track of their time, making your business more efficient and improving your overall bottom line.
