The Disadvantages of Traditional On the Clock Punch In Systems
The process of keeping track of hours worked has always been a complicated task. Over the years, various solutions have been created for tracking employee attendance. Among the most popular of these traditional on the clock punch in systems are the time card, the punch clock, and time sheets.
Each of these options has their own disadvantages. During the past several decades, businesses have slowly begun integrating software and modern clocking terminals to more accurately track employee attendance. Discover the disadvantages of using traditional systems and find out why you should consider upgrading to an automated time tracking solution.
In the 20th century, the need to accurately track employee hours has become an essential part of running a business. Laws were put in place to protect employees and ensure they were properly compensated. Businesses began using various methods of tracking employee time. While these methods allowed businesses to record employee time, they also possessed flaws. Here are the primary disadvantages of these traditional systems.
There is a Potential for Human Error
When you rely on punch cards or time sheets, there is always the potential for human error. Employees may inaccurately enter their time on a time sheet or the information may be entered incorrectly into your accounting software for payroll.
These errors are common in a workplace when using manual time attendance solutions. Your HR department can spend a large amount of time correcting these errors. The errors that go uncaught could result in incorrect pay for employees and other payroll issues.
Employees Can Commit Time Theft
Manual timesheets and punch cards do not prevent time theft or buddy punching. With manual time tracking, an employee could use another employee punch card to clock them in for their shift. This is known as buddy punching and is a common problem among large businesses.
Manual Time Tracking is Time Consuming
A lot of time is spent handling timesheets and time cards. Your employees may need to stand in line to punch in or out and your HR department spends time dealing with time card issues. This can include the replacement of punch cards, correcting timesheet errors and mistakes, and other problems that arise when using manual time tracking systems.
They are Inefficient and Outdated
The bottom line is that manual on the clock punch in systems is inefficient and outdated. They can have a large impact on your business performance. Time clock errors can cost your business tine and money. These issues become bigger with a large business.
You can keep the disadvantages of using manual time clock solutions to a minimum when you only have a dozen employees. But, with a thousand or more employees, you could be losing thousands of dollars in payroll errors and time theft every month.
The Advantages of Upgrading to an Automated Time Tracking Solution
Now that you understand the primary disadvantages of using a traditional on the clock punch in system, discover the advantages of automated time tracking software. Technology is constantly advancing. It only makes sense that the way you track employee time would become a part of modern technology. Find out why advanced time tracking software is the perfect solution for any business.
What is an automated time tracking software? Basically, this refers to a software that logs employee attendance and exports data to a payroll or accounting system. The method used for clocking in or out can vary. Some of the options available include biometric terminals, proximity terminals, mobile clocking, landline clocking, and web-based clocking.
Each of these options can be combined with other workforce management solutions, such as rostering software and HR software. You can create a time tracking solution that matches the specific needs of your business.
Prevent Payroll Errors
Why is a time tracking solution more beneficial than traditional on the clock punch in systems? For one, they eliminate the potential for human errors. The payroll errors that are common with manual options are not an issue when the software automatically compiles employee attendance data.
Prevent Time Theft
If you choose to use biometric terminals, you can eliminate the potential for time theft. A biometric terminal requires employees to scan their fingerprint. The system then verifies the identity of the employee and clocks him or her into the system. Buddy punching and other forms of time fraud are simply not possible with a biometric terminal.
Improve Efficiency and Productivity
When you use time tracking software, you should notice an increase in productivity and efficiency. Many of the tasks related to dealing with punch cards and time sheets are made obsolete. Data is electronically sent from the clocking terminal to the time tracking system where your HR department or managers can access employee attendance. Less time is spent dealing with attendance issues.
Over two-thirds of businesses still use manual on the clock punch in systems. It may be time for you to think about making the switch to an automated time tracking solution. Learn more about time tracking software and other workforce management solutions.