The Best Time and Attendance Software Is All About Accuracy and Efficiency By Christie Syndor, Market Analyst and Content Writer at SelectHub
Gone are the days of staff punching work time via traditional time clocks or filling out paper timetables with their hours each day. Tracking time and attendance is critical for all organizations. Monitoring a workforce, especially in a large organization, can be a grueling task.
Like many other HR functions, recording how long employees work each day has gone digital. Modern time and attendance solutions give companies everything they need to manage all aspects of their employees’ time. These systems log when staff starts and ends their day, show their weekly schedules and provide a time-off request portal.
Executive Summary
- Time and attendance tracking increases efficiency with automated time tracking and self-service for employees.
- Compliance and security features automatically keep businesses in line with labor regulations.
- Increased productivity and improved tracking accuracy are some common benefits.
- Future trends of time and attendance software will include increased AI use, biometrics and self-service usage.
- Asking the right questions will help you decide on a software that is right for you.
What Is Time and Attendance Software?
Time and attendance software is designed to streamline the time tracking process. These applications track attendance patterns, create automatic schedules and streamline work distribution to optimize management across different shifts and locations.
Time and attendance systems cover all aspects of time monitoring, including clock-ins and outs, breaks and activity tracking.
The focus of these solutions is to help maintain an effective, productive and cost-effective workforce. As organizations become more dynamic and flexible, workplace optimization becomes more challenging. Mobile apps can remove some ?challenges by allowing workers to access the system from anywhere. This makes it easier to track time across a distributed team.
Primary Benefits
Increase Productivity
Time and attendance software can automate tasks to eliminate the many frustrations of doing those tasks manually. Automation increases efficiency, productivity, and the managing of labor costs, and the maximization of profits only scratches the surface of its functionality.
With a growing workforce, you need to have an efficient way to manage how they spend their time. Many tools offer capabilities that maximize your workforce’s productivity.
Provide Structure
With time and attendance software, you can give yourself and your workforce better structure of what their workday should look like. Structure provides you with the ability to catch concerning time and attendance patterns, too.
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Implementation Goals
Goal 1
Provide Employees Self-service Access to Track Their Time and Absences
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A user-friendly time and attendance system will give workers a centralized location for all related needs. This takes the responsibilities off the shoulders of HR departments while giving employees the self-sufficiency and access they desire.
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Goal 2
Manage Time for Contract Workers, Overtime and Other Special Circumstances
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Today, it’s common for companies to hire contractors. Contractors may work different hours and receive different pay than the non-exempt or salaried team. With software, this kind of deviation from the norm does not disrupt processes. Time tracking and individualized user experiences allow anyone who works differing hours to manage their hours accurately.
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Goal 3
Collect Data
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Many modern time and attendance systems include built-in data analysis and reporting tools. Managers can use these features to view information on attendance and make scheduling policy decisions based on the data.
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Goal 4
Prevent Lawsuits
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Employers are subject to hundreds of labor legislation compliances at both the federal and state level. A well-designed time and attendance system is your core defense against errors. Configuring the software for federal and local regulations is a standard capability.
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Goal 5
Reduce Errors
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Human error is always a factor in manual processes. So you need software to do manual data entry and lower your error rate. Integrating time and attendance software with payroll processes prevents errors, ensuring optimal compensation precision for employees and work tracking.
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Basic Features & Functionality
Let’s look at some key features that should be on your checklist:
Automated Time Tracking |
This feature lets supervisors proactively manage work time more efficiently. In addition, you receive valuable data from staff time usage and attendance, absenteeism, overtime and PTO. Long term, these measures will boost productivity and promote better use of the company’s resources.
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Scheduling |
Many time and attendance systems include features that allow managers to create and modify work schedules. Depending on the software, this may also include tools enabling employees to request specific work schedules.
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Employee and Company Compliance |
Keeping current with changing laws and bargaining agreements is mandatory for your business. Not adhering to compliance regulations might cause costly lawsuits and damage your company’s reputation irrevocably.
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Security and Safety Measures |
This function is another example of a hidden benefit found in many software solutions. When an employee arrives at work and swipes their company ID at the office entrance, their entry into work is recorded. Individual ID can allow access to some areas and restrict access to others, ?protecting sensitive areas.
Visitors to work sites can use visitor identification, allowing you to monitor them without requiring extra security parameters. Finally, uploading fire, health and safety regulations and emergency protocols and guidelines ensure employees know what to do in the event of a disaster or emergency.
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Notifications and Alerts |
This feature includes alerts about approaching overtime limits. Some systems can also alert managers when employees clock in or out for the day.
You can send notifications via email, text messages, push notifications and other social media platforms like Twitter, LinkedIn and more.
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Absence Management |
Most systems monitor attendance in one workflow, including absences. This way, managers and teams have access to an up-to-date picture of the schedule for the day.
Some solutions allow companies to log sick time and other paid holidays. Employees can request time off, and managers can approve or deny each request accordingly.
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Employee Self-service |
Providing online access to important information, like schedules, time, attendance, benefits and payroll information lets managers answer fewer questions.
This feature can also improve precision and reduce administrative tasks. For example, when a worker moves to a new address, opens a new bank account, has a new emergency contact number and more, they can enter this data into the system.
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Integration |
Several key integrations enhance the potential ROI for any time and attendance system. The two most popular integrations are payroll and access control applications. You can integrate automated time assistance, preventing manual redundancy in attendance data.
Payroll integrations are a useful feature that saves money when you work and ensures that the payroll system’s data is correct. This option also includes paid vacations and leave approval requests based on the preset vacation and attendance policy.
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Data Collection |
Collect time and work data to generate reports with highly detailed information regarding labor use. By acquiring this data, businesses gain insight into employee productivity and time management.
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Advanced Features & Functionality
Analytical Reporting |
Software can generate many types of reports based on the data input by management and employees. This capability presents many valuable possibilities for current business practices and developing a future business strategy.
Using reports that provide information and analysis on questions such as attendance trends and absenteeism can lead to proactive intervention to stem poor habits and introduce positive behavior.
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Task and Activity Management |
This feature goes beyond standard management by monitoring the hours spent on specific projects. For contract workers and other non-traditional employees, task and activity management allows for personalized time tracking.
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GPS Coordinate Tracking |
GPS coordinates show where employees are, which can be helpful for mobile workforces. GPS capability allows managers to view a map of where employees spend the day, adding accountability. It also makes it easy to see which offsite employees are closest to the next job.
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Mileage Tracking and Mileage Reimbursement Management |
Employees may have to drive their cars on business trips. Mileage tracking allows employees to track and record business miles from their mobile devices accurately and easily, ?preventing manual reimbursement tracking requirements. Tracking mileage allows for payments for reimbursement and adherence to IRS compliance.
Because of the IRS’s mileage reimbursement regulations, you should receive reimbursement for that use when you’re using private vehicles for work.
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QR Codes |
Personal identification numbers and biometric verification can be viable but not foolproof solutions.
Users can scan QR codes without specialized equipment to capture the encoded contents. You only need a computer and a webcam. A QR-code reader app is usable with smartphones, laptops or tablets. Besides the standard UPC barcodes, QR codes contain more data. QR codes can be read faster than conventional encrypted badges.
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Biometrics |
Thanks to their many advantages, biometric-based time and attendance systems are becoming increasingly popular. This feature can help employers ensure employees don’t clock in and out for their co-workers, also known as buddy punching.
Many solutions provide different levels of biometrics to prevent this type of abuse. These can include time clocks that read each employee's biometric imprint, such as their fingerprint, iris or face.
This feature eliminates the need for manual time entry, saves employee time, decreases overhead staffing and gives the payroll department an accurate picture of labor data.
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Geo-attendance |
Geofencing allows supervisors to set specific coordinates so employees don’t clock in or out of work hours while away from the required location.
For example, a company can set a radius of 40 meters from the geofenced area, preventing employees from clocking in outside of that radius.
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Current & Upcoming Trends
The time and attendance software market is forecast to grow to $5.3 million by 2030. It’s clear that TAA systems will remain popular. The following are notable trends you should consider before purchasing a new tool.
Access Control Applications
Integrations, such as access control applications, are very popular with time and attendance software users. Access control systems are applications that allow you to control who can access, or who cannot access, files within your company.
You can allow or disallow access to things such as staff records, time and attendance records, payroll systems and even the ability to access your buildings, if you use biometrics.
Artificial Intelligence
Like most other spheres, AI is impacting time tracking. It can gather and analyze employee data to assist with staffing, scheduling and other labor needs.
You can also take repetitive administrative tasks off managers' backs by introducing automation.
AI automatically identifies eligible employees regarding availability, burnout and overtime.
With AI-enabled tools, employees can personalize their experience to present the most important information, see schedules, swap shifts and request time off from their phones, tablet or desktop.
Biometrics
In recent years, the acceleration of biometric technology has been an important factor in developing new ways to monitor a workforce. Biometric technology defines a person by who the individual is rather than by what the individual knows (such as passwords, PINs and more). In fact, the revenue of the biometrics market is expected to reach nearly $55 billion by 2027.
Buddy punching and time theft are usually tricky to manage. However, biometrics come to aid in ending buddy punching. Biometrics are a good option for their long-term benefits and greater ROI if you’re currently using a paper-based method and looking for technology to help you overcome these limitations.
These systems use algorithms to save a digital image to check the individual's identification when clocking in or out.
Gig Economy Management
McKinsey states that freelance work is booming. The gig economy is changing the face of business as we know it.
Since gig workers do not have the same permanent employee rights, companies need to assist managers with obtaining the best possible results from gig workers while dealing with any problems.
Legislation and regulations govern the gig economy. However, the growth of this subset of workers is still going strong. Employers must be careful with how these regulations evolve to track working hours and pay freelancers accurately.
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How To Begin a Software Comparison
Deciding on the best product for your personal business needs is a complex decision. First, the market usually offers an overwhelming amount of options. Second, your choice should closely reflect and align with your business needs.
No two businesses are exactly alike, though there will be many similarities across the same industry. An important consideration is the needs you’re prioritizing when choosing software. Make sure you’re clear on what features you need (your requirements).
This approach has a greater opportunity of meeting your needs and producing a successful conclusion.
Cost & Pricing Considerations
Time and attendance solution rates can vary significantly depending on many characteristics. Some key factors that affect overall pricing include:
- Size of the business (number of employees and administrators) and models.
- Number of locations required for the setup.
- Range of features needed.
- Add-on services.
- Support fees.
- Customized interface or features.
- Additional tablets, computers or other hardware.
Some high-end systems cost around $10 per person per month. Cloud systems frequently have a monthly fee for each employee.
Time clocks are another cost you’ll probably encounter. Attendance systems operate with various time clocks that leverage PINs, badges or biometrics like fingerprints or face scans. Typically, prices vary from a few hundred dollars per basic clock to a few thousand per sophisticated biometric clock.
Often web-based solutions are more efficient for time and attendance monitoring since they contain the rules to calculate overtime. They also support companies with labor law compliance and time-off regulations, such as sick leave and family leave.
Some vendors don’t disclose pricing on their websites, so you need to be sure to ask for pricing lists ?when inquiring about the product. Another recommendation would be to start with the free trial or base package and then add services or features you need.
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Questions To Ask Yourself
Use these questions as a starting point for internal conversations:
- What’s wrong with your current time and attendance system (if you have one)?
- Why are you interested in adopting a solution if your business doesn’t currently use the software?
- Which features are most important to your organization?
- Will your current infrastructure respond to software adoption? If not, what changes should you make in preparation?
- What budget and time constraints do you have?
- What are your compliance and reporting needs?
Questions To Ask Vendors
Use these questions as a starting point for conversations with vendors:
About the Software
- Does the software allow employees to record their time in multiple ways?
- Does it have mobile compatibility?
- Does it allow employee self-service?
- Which deployment options are available?
- Which program integrations are available?
About the Vendor
- What anti-fraud and security measures do you offer?
- What is the support offered? Does it cost extra?
- Do you have to pay for software updates?
- How often are there updates, and when was the last time the system was updated?
- Does the license expire?
In Conclusion
Companies with an abundance of employees who work outside the office need solutions that give employees the flexibility to track their time efficiently. You need a system that provides many options so that all your employees can use it, regardless of what kind of technology they have at their disposal.
This buyer’s guide is a starting point to find the best time and attendance software that fits your needs. To simplify the process, use our free comparison report to quickly compare top products based on your needs.
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