Regardless of the size of your organization, keeping accurate employee attendance records is crucial, and not just because it’s the law! Costs associated with labor are generally the largest expense a business incurs, so managing the workforce is more than a compliance issue; it’s also about protecting your business bottom line. However, designing / selecting the right type of attendance management system for your organization can be overwhelming … and it is important. If you select the wrong system for your organization, you could end up spending more time and resources than you normally would.
In that sense, we have created a step-by-step guide to develop an employee time and attendance management system.
Types of attendance management systems
• Timesheet
• Time watch
• Automated assistance system
– Badge reader (swipe, proximity, etc.)
– Biometric (fingerprint, hand reader)
• Software / Internet / Mobile Apps Options
Step 1. How many employees do you need to manage?
Up to 5 employees
If your organization has fewer than 5 employees, you are looking for two options for an attendance management system: a time sheet or a time card clock. The appeal of the timesheet is cost. All you have to do is create a timesheet and you are good to go. However, while timesheets satisfy the government’s requirement to document employee hours, they are easy to falsify or time-fill. A basic time clock for employees discourages falsification of time records and is particularly effective in smaller organizations.
Up to 25 employees
If you have a small business with fewer than 25 employees, a time clock will (most likely) be a good option for your organization. However, an automated attendance system might be a better option. As a general rule of thumb, if you spend no more than 1 to 2 hours per pay period on attendance management, a time clock is an acceptable time recording method for your organization. However, if you spend more than 1 to 2 hours per pay period, you will want to look for an automated attendance system.
More than 25 employees
For any company with more than 25 employees, we recommend using an automated attendance system. The systems available today are robust, complete and cost effective.
Please note that all questions after the first step are to determine the right automated support system for your business.
Step 2. What industry is your business in?
While this question may seem unimportant or like a marketing tactic to get demographic information from you, this information is really important in determining the right type of attendance management system for your business. Every industry has certain characteristics. Some industries need credentials; others deal with chemicals, so fingerprints are almost non-existent. Here is a general rule of thumb to determine the correct system in step 2.
Badge Readers
Badge readers are useful in industries that require badges, as they can function as a badge and attendance management tool. The media and entertainment industry is a good example. Badge readers also work well with more secure enterprise access control systems. There are several variations of badge swipe, barcode scanners, and proximity assistance systems.
Fingerprint reader
Fingerprint readers are most often used in commercial and retail environments. Fingerprint readers are excellent in industries that require increased security or where piercing from a partner is a common and prevalent problem. They can also function as access control systems when required.
Handheld reader
Handheld readers represent the other automated biometric assistance option on the market. Handheld readers measure and analyze the general structure, shape, and proportions of the hand (i.e. the width, length, and thickness of the hand) and maintain accuracy when hands are dirty or injured. Manual reading systems are the most widely used scanning devices and can also function as an access control terminal. Handheld readers are most often used in industries where peer piercing is prevalent and where relying on a fingerprint is not the best option. Industries include: manufacturing, food processing, healthcare, and restaurant chains. Handheld readers are arguably the best biometric option on the market; however, their main barrier for small businesses is in their prices, as they are also among the most expensive terminal options on the market.
Step 3. What does your attendance system need to do?
Human resources functions. Aside from the basics of recording / setting shots, meal breaks, and breaks, a good software program should be able to cover basic HR functions. This broad category covers essential human resources functions, including: tracking employee attendance, applying rounding rules, calculating overtime, and calculating employee time and wages. It is what a software has beyond these basic functions and it is what determines whether or not it can have some heavyweight status. The following are some of the features to look for in comprehensive attendance management software:
Payment policies. Do you work in an industry where your employees are paid differently based on the type of work they are doing? Need to define vacation, overtime, and exception rules differently? Are there specific payment policies / practices for your industry?
Scheduling and shifts. Does your company have flexible shifts or floating shifts?
Reports. What kind of reports does your company need? What kind of information do you need instantly available? What can you live without?
Payroll export. This is a big one. Who does your payroll? Your software must be compliant and fully compliant.
Vote. Who is in? What are they doing? A good software program should allow you to do this, and some hardware terminals will allow you to do it in the terminal itself (for example, HandPunch).
Accumulated benefits. If your organization has a vacation or sick time policy, your software should be able to apply that policy to your attendance management.
Database backup and restore. Some of us know the pain and agony of losing our data, but we all fear it. Your software should have a database backup and restore option. If not, please don’t buy it.
In short, what you need is literally determined by what you need and the software is where you will get the full potential and efficiency of an attendance management system. Also, while this guide is intended to help you determine the right solution for your organization, it is always recommended to seek the advice of a time and attendance professional.