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Time and Attendance System Buyer's Guide
Introduction to time and attendance systems
Time and attendance systems, also known as clocking on systems, are the ideal tool for recording employees’ working hours. You no longer need to issue, collect, check through and adjust piles of paper time sheets. The hardware of a time and attendance system combines with easy-to-use software to improve the efficiency of your business.
Consequently, more and more companies are installing time and attendance systems and benefiting from the elimination of employee time sheet errors and less paperwork. Suppliers are also offering systems to match specific industry requirements. You can have software that provides reports on absenteeism, late arrivals and overtime, for example. And your time and attendance system can form an integral part of your payroll, security, communication and fire roll call procedures. These features save time and money.
Advantages of a time and attendance system
There are a number of problems associated with employee’s using paper based timesheets.
Forgetfulness - Some employees forget to complete their timesheets regularly and have to take their best guess about when they arrived, went for lunch and left for the day. The employees or the company may lose out.
Rounding up - Other employees may routinely increase their hours by rounding up their times. They may do this without thinking, but a few minutes each day can be equivalent to a week or so over the course of a year. This equates to a week’s pay without the work to show for it; and if everyone in your company does the same, there’s an impact on efficiency and profits.
Administration - Producing an accurate total for a manual employee timesheet can be time-consuming and contentious. Employees may make mistakes, so their line manager has to check the figures. This line manager must then explain any adjustments to the staff member in time to meet the payroll deadline. If the employee isn’t available, the line manager has to submit a revised time sheet that may reduce the amount of pay the employee expects – and this is certain to cause issues.
Maintenance of records - A company must keep paper timesheets in case problems arise in the future. You may need the sheets at a disciplinary hearing, for instance. You must therefore have secure storage, which takes up valuable office space.
An automated time and attendance system can solve these problems. The hardware provides a point at which each employee clock on and off and the software turns that information into a record of attendance.
A company starts benefiting from a time and attendance system if it has around 25 staff. Below this figure, you may feel that a system is unnecessary because the total number of employees is small enough to monitor without difficulty.
If you want to take advantage of a time and attendance system you will find that a package capable of monitoring basic attendance for up to 50 staff can cost only a few hundred pounds. A larger company usually opts for a more expensive and sophisticated system because this provides not only clocking on and off times but also the means to help manage the staff. Such assistance comes in the form of human resource reports that enable you to:
> Manage absences effectively with full reports on length and frequency of absences
> Predict staffing needs to cover for department holidays
> View real time management information regarding employee activity and productivity
A time and attendance system can therefore help you run your business more effectively.
Time and attendance system basics
The main principle behind a time and attendance system is straightforward: it gathers attendance data in relation to an employee’s time in the workplace and stores this in a database. Administrators can monitor the collected data, make manual adjustments if necessary and use the information to create customised management reports. The attendance data can also be automatically transferred in to your payroll software.
The process of clocking on and off varies, although each method identifies individual employees.
Time and attendance identity cards - These have a bar code or magnetic strip. When employees clock on or off, they swipe the card through a reader. A screen on the reader confirms whether the swipe is successful and displays the time.
Proximity cards, badges and key fobs - This is a quicker system than ID card swiping. Staff simply pass their card, badge or key fob in front of a time and attendance reader.
Biometric Time Clock - An employee may ask a colleague to use his or her card, badge or key fob to clock on or off. One way of preventing this abuse is to install a biometric time attendance machine that confirms fingerprints or handprints. Some organisations have iris scanners but their use is widely regarded as an unacceptable invasion of privacy.
Ethernet Time and Attendance/Phone - Staff that spend part or all of their working hours at home can still clock on and off. All they need to do is use a Remote Clocking Utility that is based on their PC or laptop. They can also send appropriate messages to their line managers using the same software. Such systems are increasingly common, and are useful in remote offices with a small number of staff.
To be as comprehensive as possible, time and attendance systems must also hold details of holidays, sick leave, maternity and paternity leave, and time spent working elsewhere. If a manually adjustment is required an administrative officer can then alter the information in the time and attendance database.
Features of time management solutions
When you’re studying what each time and attendance system supplier can offer you, don’t forget to concentrate on the features most relevant to your business. A time management solution may have some interesting aspects, but they may not be appropriate. Decide how you want the system to improve your business efficiency before contacting suppliers.
Small to medium size companies
- Basic clocking on and off. This may be all you want from your time and attendance system. If so, there’s a good choice available.
- Absence Management. Most systems have a calendar feature that allows line managers to develop and control absences for each member of staff. Managers can enter holidays within the calendar and monitor late arrivals and sickness trends.
- Reports. Time and attendance software can give you a wealth of detail about staff attendance. It’s vital, though, to ensure the reports that contain this information suit your business. If you also want to audit the reports to ensure their correctness, check that the system supplier can give you the tools you need.
Large companies
- HR and growth strategies. Large companies want time and attendance systems that complement their strategies for HR and growth. This means that the system data must tie in with each employee’s role, place of work and any special responsibilities.
- Productivity and forecasting. You may want piecework information about individual and group productivity. A suitable time and attendance system can provide you with appropriate reports that can also help determine current and future staffing requirements.
- Particular needs. Certain organisations, NHS Trusts for example, work to specific procedures and regulations. These rules dictate the precise information a time and attendance system must provide. Suppliers have recognised such needs and will tell you how their system can meet your individual business requirements.
One way of deciding in advance how a time and attendance system can help you is to speak with a cross section of employees and take note of their views. After all, you want the system to improve the running of your business as much as possible. And with this in mind, you may also want to ensure you can add extra features to a system as and when you need them.
Compatibility concerns about time and attendance software
The issue of software compatibility is crucial. The last thing you want to buy is time and attendance software that fails to work successfully with;
> your computer operating system
> your enterprise resource planning system such as SAP
> your databases and reporting mechanisms
You can soon receive a supplier’s answer to your enquiries about these. But it may be more difficult to establish whether a time and attendance system is suitable for
> the needs of your payroll section or external payroll provider
> the policies of your HR section including time and attendance regulations
> your IT hardware
You should also confirm with the supplier that the system’s installation won’t cause any unnecessary computer down time or payroll delays, and that the software has built-in security.
Most time and attendance system suppliers will accommodate your needs. But make sure that any assurances from your chosen supplier come with a project plan flexible enough to cope with any teething problems.
The only other point to make about compatibility is to be wary of so-called “next generation” time and attendance systems. Don’t be taken in by these. You want a system that works well in your current business environment. And you want it to adapt to meet your future requirements. You don’t want a system that’ll be great in a few years’ time but of limited use here and now.
Time and attendance system suppliers
You can buy basic time and attendance systems off the shelf. Alternatively, you can ask suppliers to visit your site and discuss your needs. Before you arrange such a visit, note the point already made in this Buyer’s Guide that you should have a clear idea of what it is you want.
Begin by examining a number of time and attendance system companies. One key issue is to confirm a supplier’s status and reliability. You’ll want your system to run without a hitch year in, year out so make sure as far as you are able that the supplier will be around to solve problems and provide upgrades in the future. Also check whether the supplier deals with the system’s sale, installation and training or whether this is subcontracted locally.
If the supplier uses a subcontractor, you’ll want to know if this company is professional and experienced. Speak to them and ask for details of;
> the company’s experience installing the system
> references from similar businesses as yours
> a contact point and response time in the event of a system failure or snag
It’s also worth checking to see if there are other subcontractors in the area available to help you if the original company ceases to trade or no longer supports the system
Time and attendance system prices
As mentioned earlier, a standard clocking on and off system for up to 50 staff can cost only a few hundred pounds. For up to 250 employees, expect to pay a few thousand pounds. If your company is larger, prices will start at around £10,000.
These, however, are straightforward systems that simply need a secure broadband connection. For more complex systems that provide features such as data reports and full IT integration, you’ll receive quotes well into tens of thousands of pounds, rising to £100,000 or more for a major organisation with various office locations. Any customisation you request will also increase the bill: amendments to software are invariably expensive.
But unless you’re buying a basic employee time clock, you should ask the suppliers to break down their prices into the component parts. The individual amounts should reflect;
> the features contained within the software
> the hardware, including the number and type of readers, cards, badges or key fobs
> the software licence fee
> training, installation and support costs
Tips for buying an employee time tracking system
New technology - Although this Buyer’s Guide has warned about sales pitches based on “next generation” technology, there are some modern, practical features that definitely enhance a time and attendance system.
Training - A supplier may provide support for your employee time tracking system free of charge for a limited period, but after this it can be expensive. To avoid unnecessary costs, make sure the supplier gives you and your staff full training in every aspect of the system. And advise staff to ask the trainer questions if they don’t understand anything.
Manuals - Make sure you get a system manual and any other user documents from the supplier. And resist the temptation to immediately file the manual in a bottom drawer. Look it over and raise any queries as soon as possible.
The installation - Ask the supplier for an installation plan. This should give the date of installation, the time the job will take, and what the supplier wants from you in the form of assistance and IT. A good plan will help ensure your time and attendance system is up and working quickly and effectively with minimum disruption to your business processes.
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