A manual attendance monitoring system requires that employees report the hours they have worked at the end of each day/pay cycle. However, such a system of recording employees’ in and out times increases the likelihood of inaccuracies creeping into the time tracking. Moreover, using a manual attendance system poses a number of additional challenges. For instance, illegibly filled timesheets can lead to difficulties in entering the ‘hours worked’ data into the payroll system. This is not to mention inaccuracies in time recorded which in turn lead to the need for corrections to payroll data if accurate wages are to be rolled out. Also, time leakages may result in cases where the manual process is heavily dependent on the integrity of the employee, who may choose to abuse it. Without an accurate understanding of attendance data in the organization, it is not possible to determine the true labor costs – a definite loss for the organization.
Modern attendance systems have brought in ways to reduce such inaccuracies in data collection and occurrences of time leakages. Data can be collected electronically by providing employees with the facility to punch in and out of office premises through the use of a secure browser, biometric clock or mobile device. The data that is collected can then be transferred on a real-time basis to the attendance system. Such real-time data transfer allows for managers and employees to be kept abreast of early or late punch-ins and punch-outs as they occur through the use of alerts. Such alerts ensure that employee attendance issues are dealt with as they arise, before they become larger issues.
A closer look at the impact of an old vs. a new attendance system on various aspects of the organization follows.
An automated attendance system can result in both direct and indirect cost savings. These are achieved directly through the elimination of overtime costs and time leakages, reduced errors in manually generated payroll due to automated attendance inputs, as well as through improved productivity. Indirect cost savings too are made possible through an automated employee attendance management system. These come in the form of better insights into one’s employees’ work, the time spent therein, and, ultimately, the ROI of the work produced. Such insights can allow for more effective allocation of labor across the organization, leading to improved cost-effectiveness.
Reduced burden on specific departments
A manual attendance monitoring systemimplies storing large amounts of paper-based timesheet files on each employee. Managing these records is both time-consuming as well as highly inefficient, especially when a particular employee’s data is required by the manager or payroll and needs to be retrieved from the stored records. Here, the activity becomes a bottleneck and the relevant data is not available to payroll and other departments in a timely manner. To counter the above problems, a modern employee attendance management system uses a feature called employee self-service (ESS). This functionality gives employees and managers access to their attendance data and encourages their active participation in the proper maintenance of this data. This reduces bottlenecks and additional burden on the HR or payroll department, apart from ensuring that fewer queries are posed to HR, further freeing up HR’s time for more strategic activities.
Other benefits that accrue from a modern attendance management system in comparison to older, manual systems include improved compliance and stronger organizational culture, apart from far better accuracy and productivity.