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 typically the largest expense a business incurs, so workforce management is more than just a compliance issue; it’s also about protecting the bottom line of your business. However, designing/selecting the right type of attendance management system for your organization can be daunting…and it’s important. If you select the wrong system for your organization, you could end up spending more time and resources than you normally would.
To that end, we’ve created a step-by-step guide to developing an employee time and attendance management system.
Types of attendance management systems
• Time sheet
•Clock hour
• Automated Assistance System
– Badge Reader (swipe, proximity, etc.)
– Biometrics (Fingerprint, Hand Reader)
• Software Options/Internet/Mobile Applications
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 at two options for an attendance management system: a time sheet or a time clock with time cards. The appeal of the time sheet is one of cost. All you have to do is create a time sheet and you’re good to go. However, while time sheets meet the government’s requirement to document employee hours, they are easy to falsify or pad hours. A basic employee time clock 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, chances are a time clock is a good fit 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 1-2 hours per pay period managing attendance, a time clock is an acceptable timekeeping method for your organization. However, if you spend more than 1-2 hours per pay period, you’ll want to look into an automated support system.
More than 25 employees
For any business 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 step one are to determine the right automated helpdesk system for your business.
Step 2. What industry is your business in?
While this question may seem unimportant or like a marketing ploy to gain demographic information about you, this information is actually important in determining the right type of attendance management system for your business. Every industry has certain characteristics. Some industries require credentials; others deal with chemicals, so fingerprints are almost non-existent. Here is a general rule of thumb for determining the correct system in step 2.
reader badge
Credential readers are useful in credential-requiring industries as they can function as a credential and attendance management tool. The media and entertainment industry is a good example. Badge readers also work well with enterprise access control systems with increased security. There are several variations of magnetic cards, barcode scanners, and proximity assistance systems.
fingerprint reader
Fingerprint readers are most often used in commercial and retail settings. Fingerprint readers are great in industries that require increased security or where buddy tagging is a common and prevalent problem. They can also function as access control systems when required.
hand reader
Handheld readers represent the other biometric automated attendance option on the market. Hand readers measure and analyze the overall structure, shape, and proportions of the hand (i.e., width, length, and thickness of the hand) and are able to maintain accuracy even when hands are dirty or injured. Handheld reader systems are the most widely used scanning devices and can also function as access control terminals. Palm readers are most commonly used in industries where buddy dialing is prevalent and relying on a fingerprint is not the best option. Industries include: manufacturing, food processing, health care, and restaurant chains. Hand readers are arguably the best biometric option on the market, however their main barrier for small businesses is their price as they are also among the most expensive terminal options on the market.
Step 3. What should your support system be able to do?
HR functions. In addition to the basics of recording/setting punches, meal breaks, and breaks, a good software program should be able to cover basic HR functions. This broad category covers essential HR 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 that determines whether or not it can promote 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 depending on the type of work they are doing? Need to define vacation, overtime, and exception rules differently? Are there payment policies/practices specific to your industry?
Programming and shifts. Does your company have flexible shifts or floating shifts?
Reports. What types 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 compatible and fully supported.
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 this in the terminal itself (eg HandPunch).
Accumulation of benefits. If your organization has a vacation or sick leave 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 your data, but we all dread it. Your software should have a database backup and restore option. If not, don’t buy it.
In short, what you need is literally determined by what you need, and software is where you get the full potential and efficiency of an attendance management system. Additionally, while this guide attempts to help you determine the right solution for your organization, it is always recommended to seek the expert advice of a time and attendance professional.
