Choosing a Time and Attendance System

Posted on 7th Dec 2020

Time and attendance systems can benefit businesses in numerous ways, With so many choices, though, it can be hard to figure out which one will best fit your needs. If you are looking for a time and attendance system in 2019, here's everything you need to know about what they are, what they offer and how to choose one.

What Are Time and Attendance Systems?
Time and attendance systems allow employees to clock in and out electronically via timeclocks, internet-connected computers, mobile devices and telephones. Some solutions also offer the ability to punch in and out via text messages, social media programs like Twitter, and other communication programs, such as Slack. When an employee clocks in or out, the data instantly transfers to software that can seamlessly import it into your payroll solution.

These systems do more than just track when employees come and go. They also monitor mobile employees via geolocation and geofencing, manage paid time off (PTO), create employee schedules, provide detailed labor reports, and give real-time data on who is working, who is not, who showed up late and who is nearing overtime.

Time and attendance systems offer self-service that allows employees to handle many time-tracking tasks on their own, including reviewing the hours they've worked, their current and future schedules, and their PTO accruals.

Many of these systems offer both cloud-based and on-premises solutions. The on-premises systems are stored on servers within your business, while the cloud-based systems are housed by your time and attendance system provider and accessed online.

Pros and Cons
The biggest benefit of these digital systems is they eliminate the need for manual timecards. All the time is collected electronically, with the calculations made for you. This cuts down on the chance of errors and frees up the person who was responsible for tallying all of that information to work on other tasks.

Another positive is that these systems manage all your time needs – employee attendance, PTO and scheduling – in one program. This can be both cost-effective and a boost to productivity, as employees won't waste time toggling between different programs to ask for time off or look at their schedules.

The biggest drawback to time-tracking systems is that they are more expensive than the old manual method where employees write down their hours each day or punch in and out on a paper timecard. Another potential downside is that they often force employers to curb the perception that asking employees to track their time is a form of micromanagement.

Costs
The cost structure of time and attendance systems depends on whether you choose a cloud-based or on-premises solution. Cloud-based systems have smaller recurring monthly costs, while on-premises systems have larger one-time fees.

With on-premises systems, you pay all your costs upfront. You can expect to pay several hundred to several thousand dollars for the software, licenses for each employee and installation. There aren't any monthly fees for the service after that. However, the one-time costs don't typically include any ongoing support or software updates.

For a cloud-based system, most services charge a per-user fee that ranges from $1 to $10 per employee per month. Some services also assess a base monthly charge or a minimum monthly charge.

Some providers charge a one-time setup and implementation fee. Unlike with on-premises systems, however, all software upgrades and support are included in your monthly expenses.

Another cost you might incur for either option is for a timeclock. Many time and attendance systems work with a range of timeclocks. These timeclocks can work with PINs, swipe or proximity badges, or biometrics such as fingerprint or facial scans. The complexity of the clock you select will determine the cost. Prices typically range from a couple hundred for a basic clock to several thousand for a sophisticated biometric clock.

By: Chad Brooks