Time and Attendance
Term Definition of Time and Attendance Time and attendance is the process of tracking work hours. In the past this was always a manual system. Employees may have manually completed a time card and that information was used for payroll and benefits. Another option for tracking time was a punch clock now businesses have the […]
Term Definition of Time and Attendance
Time and attendance is the process of tracking work hours. In the past this was always a manual system. Employees may have manually completed a time card and that information was used for payroll and benefits. Another option for tracking time was a punch clock now businesses have the option of attendance software.
Some companies replaced the fully manual system with a simple punch clock where employees inserted a card into a clock, which stamped the time that they were punching in or out. As technology continued to advance, there were newer options for tracking time and attendance through time keeping software.
Applications of Time and Attendance
One such advance utilizes scanning to track time and attendance. Employees are issued badges with bar codes on the back, which resemble an ATM card. The badges are then swiped through a time clock to capture the time the employee is punching in and out. All of these systems can still be labeled as “manual” as they rely solely on human intervention. The employee must remember to perform an action in order to accurately capture the data.
The largest corporate expenditure today, managing employee time, is often performed using a combination of manual and decentralized processes or multiple disconnected information systems that can lead to substantial inefficiencies and a lack of effective internal controls. According to the American Payroll Association, up to three percent of payroll imprecision is caused by human error. A survey conducted by Randy Myers indicated that cutting just $1 of operational costs could have the same impact as increasing revenue by $13.
Technology has provided time and attendance systems, which are the 21st century equivalent of the paper time sheet or punch clock. Daily tasks such as tracking work hours and calculating accrued benefits are automated, providing valuable information and making organizations more efficient. Manual or spreadsheet time and attendance based reporting creates an administrative nightmare, lack of real-time reporting, and constant after the fact corrections and adjustments to payroll and benefits.