With any purchase your first consideration is whether your organisation will benefit in some way from the purchase.
These are the possible reasons why you may be considering buying a time clock:-
i) Statutory requirements. Almost without exception your company will be required by law to keep records of the attendance times of the employees. Aside from the requirement to keep wages records for employees it may be an occupational health and safety requirement to keep daily records of employee attendance for procedures such as fire evacuation. Local regulations may impose very harsh penalties for employers who do not have a system in place for identifying which employees (and visitors) are on their premises.
ii) Manual time sheets are being falsified. Employees may arrive for work late and depart early and still complete the time sheets with the nominal start and finish times. This is often referred to as “Time Theft”. Time theft can also occur by employee “Buddy Punching” for their co-workers who may be late on the day or leave earlier than their nominal finish time. This can be a significant cost to employers either by a direct loss in productivity of overpayment of wages and salaries.
iii) Manual timesheets are labor intensive to complete or process. Timesheets take time to complete and time to process. Moving to an electronic time clock greatly reduces the time required for an employee to complete the time sheet and, depending on the system used, can dramatically reduce the payroll preparation time.
iv) Modernising your business. Many companies prefer to use more modern processes within their business and enjoy the benefit of system improvement. It could be that your current system is inefficient or it has failed.
v) Environmental or Resources issues. Electronic alternatives to manual time sheets use considerably less resources. Your company may have an environmental policy which includes a waste reduction strategy.
vi) Image. You company may want to present a more professional image to visitor, clients or employees and the use of modern office equipment and information technologies are part of this image.
These are all valid reasons to employ a more efficient method of recording employee times. If you believe that your business could benefit from exercising some control in these areas then you will almost certainly benefit from the purchase of a time clock or a time and attendance system particularly if you use this guide to manage the purchase and implementation process.
In the next post we will discuss how to select an appropriate time clock for your business.