Employers in the US admit that they have to correct errors on 80% of the timesheets their employees submit. That is a lot of resources going towards time and attendance.
This is just one reason why time clocks in the workplace are a smart idea. Read on to learn everything you need to know about employee time clocks. We'll cover the 4 types of clocks and the benefits for your business.
How Do Time Clocks Work?
There are both manual time clocks and automated time clock systems available to keep track of employee's time punches.
Either way, employees are responsible for clocking in and out of work each day when they arrive or leave work. The employee tallies up the hours they worked and uses that information for payroll calculation.
With automated time clock systems, each employee's punches are sent to the web so that supervisors only need to perform simple editing and run reports.
Let's look at the different types of time clocks on the market.
Different Types of Time Clocks in the Workplace
There are 4 main types of time clocks in the workplace. There are pros and cons to each. We'll discuss the various types and outline the benefits of each so you can choose the best option for your business.
Mechanical Wall Mount Punch Clock
This type of manual time clock has been around for a long time. The clock is affixed to the wall and requires paper cards for employees to punch.
Often, a card rack hangs next to the clock so that employees can select their card and punch in and out. When a card is inserted into the machine, the clock stamps the current time onto the card.
This type of manual time clock is easy to use, reliable and inexpensive to install. However, the downside is that it is easy for employees to punch in for their friends who are tardy.
There is also a risk of human error when calculating the hours as this needs to be done by an individual. The clock can't calculate time. As a result, this system is not as efficient as the other workplace time clocks.
Digital Wall Mount Time Clock
Digital wall clocks are connected to a computer network. You will need to install coordinating software to your network that will collect employee punches and calculate time cards for each employee.
This system is beneficial for its automated calculations. It also integrates well with payroll. The clock can even take fingerprints to avoid buddy punching. This is just another effective way for entrepreneurs to better manage their time.
The cons to this type of employee punch clock is that there is a high initial investment to install the proper network cables and software. There is also no offsite backup in case of an emergency.
PC Employee Punch Clock
This type of time clock in the workplace relies on a computer. Employees can either punch in and out from their work PCs or from a central PC dedicated to attendance.
Again, this system performs automatic time card calculations and integrates well with payroll. It is also less expensive than digital wall mount clocks.
The drawbacks are that there is no offsite backup and the software can be difficult to install and use. Plus, the investment is still moderate.
Online Time Clock
The fourth and final type of time clock in the workplace is an online time clock.
This system uses an internet browser or phone app. This means there are no server or PC installations in order for this time clock to work.
Most online time clocks charge a monthly fee per employee. It is usually a nominal fee that is less than $5 per employee. Discover more information about online time clocks.
Some systems set GPS location limits to limit where employees can clock in and out from. Fingerprint validation is available for some systems also.
Now that you understand the differences between each time of time clock, let's look at some of the benefits for your business.
Convenience of Employee Time Clocks
Automated timekeeping greatly reduces the time administrators spend on calculating or collecting employee hours.
With employee time clocks, there is no need to manually send employee data by fax or phone to payroll. Human error due to calculating time sheets will be gone and so will the hours payroll employees spend on collecting and calculating payroll.
Discover Attendance Issues
One of the main benefits of choosing an automated employee time clock is that you gain access to a bunch of useful information and reports. For example, you will be able to see repeated tardiness and systematic absences (such as an employee always taking a sick day on a Friday).
Your time clock software is able to generate these reports so that you can be made aware of issues without you having to go looking for them.
See Real-Time Labor Costs
Employee time clocks give you a clear breakdown of your time-related labor costs so that you can make informed decisions.
Time clocks in the workplace let you know which employees or which roles take up the majority of the time. You'll also know when overtime costs are rising as well as which departments rely on overtime the most.
You will also be able to compare your labor costs and labor time to industry standards to see how you measure up. Then, you can make tweaks as needed.
This information can be instrumental in hiring as well as employee discipline. Do your employees need a morale boost? Read about how to create a positive work environment.
On top of the savings of eliminating manual pay period calculations, employee time clocks also save businesses money on wasted labor minutes.
As time clocks in the workplace calculate time worked to the minute, employers save money by removing the ability of employees to provide approximations on their work day.
If employees’ clock in and out of lunch, you will save money by not paying for employees who go over their lunch break.
Employee Time Clocks Are Fair
Another excellent benefit of a time clock in the workplace is that the system is fair to everyone. By removing the human element from calculating payroll, there is no risk of favoritism.
A time clock also reassures employees of a sense of justice. This is helpful for morale.
Chronic lateness will no longer come out of the employer's pocket. Plus, the system will track hours so that if disciplinary actions are needed, there is data for support.
We hope this post has been helpful in outlining the various types of time clocks in the workplace and the benefits for your organization.
Even small businesses can save revenue by choosing an employee time clock for their organization.
Next, check out these 4 nontraditional digital marketing resources.
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