Top 5 Benefits of Using Time Clocks for Payroll

December 6, 2016

Written by: Chris Henien

In the ever changing world of HR, there are always new ways to utilize technology to improve accuracy and efficiency, while minimizing costs. With new options available every day, particularly in the area of time and attendance systems, why are organizations still using paper time cards? Time Clocks provide a simple and convenient way to prevent errors and promote confidence that payroll is being completed correctly. Let’s explore the top five benefits to using Time Clocks for payroll.

  1. Accuracy – In the absence of Time Clocks, employees are typically expected to record their hours based on memory. This can occur at the end of each day, week, or pay period. Employees will need to document when they arrived at work, how long each of their breaks and lunches were, as well as when they left at the end of the day. There are bound to be mistakes with this type of record keeping, and leveraging Time Clocks can take the burden off of the employee.
  1. Cost – While there is an initial cost to implementing time clocks in your organization, the long-term savings are well worth the investment. With paper time cards, payroll is expected to collect hundreds of time cards from employees, manually enter them into a payroll system, and risk the inevitable human errors that will result in additional work to correct. That’s a lot of time and money spent on something that could easily be handled by a Time Clock.
  1. Legality – When comparing Time Clocks to time cards that are manually collected and entered, the margin of error is much higher with the latter. Not only will mistakes affect employees’ pay and cause a decrease in morale, but payroll errors can also result in audits and fines with the government. Time Clocks provide a safeguard to legal trouble by keeping meticulous, accurate records of employees’ worked time. 
  1. Security – Timecards filled out by employees provide practically no security around falsification of reported time. Whether intentional or not, employees may record shorter breaks or lunches and receive more pay than they have earned. The company also runs the risk of “buddy punching,” which occurs when one employee fills out a time card for another employee; either because they were absent or late to work. This sort of thing would never happen with a biometric fingerprint reader on a Time Clock! 
  1. Compliance – Time Clocks can be programmed with organizational rules and regulations based on an employee’s worked time or schedule. They can be used to notify managers if an employee is late, absent, takes too many breaks, or leaves early, not to mention, these alerts are available to the manager as soon as they occur. It is nearly impossible to track all of these occurrences using paper time cards.

Time Clocks are an important component of HR technology and are your organization’s path to decreased costs and more accurate record keeping.  At HRchitect, we have helped numerous clients with evaluating, selecting, and implementing Time Clocks and Workforce management technology. If you are considering transitioning from paper time cards to Time Clocks, let HRchitect guide you through to evaluate, select, and implement a Time Clock as part of your time and attendance system, and ensure it is properly integrated with your organization’s payroll system. Talk to the experts at HRchitect to ensure a smooth implementation and to help you get the most from your investment.

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About Chris Henien:

Chris joined the HRchitect team in January 2016 as a Senior Consultant. With 5 years of experience in software consulting, Chris specializes in the Workforce Management implementations. He currently works most closely with companies implementing a WorkForce Software solution as a technical and functional consultant.

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