How a Biometric Time Clock System Reduces Labor Costs
The management of employee attendance and time is vital to any business. As this is directly linked to determining the overall productivity of employees, vulnerabilities and weaknesses in this system can lead to serious consequences in the bottom line.
Overall declines in productivity necessitate an organization's search for highly secure, precise, and cost-effective ways to manage employee time and attendance.
In most instances, the ultimate solution to improvement in this area is through the engagement of a biometric time clock system. Here, we'll address the most frequently asked questions regarding this new technology.
What is a Biometric Time Clock?
In the modern landscape of workforce management, biometric time clocks are utilized for tracking employees' time worked. A biometric-enabledtime clock functions in the same way as that of a traditional time clock; the only difference being that an additional layer of security is added through the process of biometric recognition.
This eliminates the possibility of fraud related to time attendance. Every time an employee enters or exits a given work facility, they are simply required to scan their biometric credentials, and the system automatically tracks their working hours and attendance.
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What are the Different Types of Biometric Time Clocks?
Biometric time clock systems can be distinguished by the type of attribute recognized by the system. Some of the common identifiers are known to include iris scans, fingerprints, hand geometry, and face recognition. Some biometric time clocks are designed for particular workspaces.
How Can the Biometric Time Clock Help in Cutting Overall Costs?
Employee-based biometric time clock systems are known to help in identifying employees while tracking their overall work hours. Employees punch in and out of the biometric clock, usually at the entry of the workplace.
There are several ways in which biometric time clocks can help in reducing costs significantly-
Eliminating Employee Time Theft - Employee time theft is known to cost businesses billions of dollars in losses. According to industry reports, employee time theft and dishonesty cost businesses around $50 billion on an annual basis.
Security cameras, PINs (Personal Identification Numbers), and barcode swipe cards are helpful in preventing employee time theft, but they're far less effective solutions compared to the biometric time clock, which can save money by providing accurate tracking and a strong audit trail of both employee attendance and time.
Improved Productivity - As one case study showed, with the help of a biometric time clock, one organization eliminated buddy punching and realized around $15,000 in total savings on an annual basis. This was made possible through a one-time $5,000 investment in a biometric clock system for the organization.
Biometric time and attendance systems help in eliminating the unnecessary time that is spent in the process of clocking in and out using paper-based timesheets. It also enables the reallocation of resources to other core areas, thus boosting employee productivity.
Reduced Administrative Costs - As the overall practice of maintaining attendance and time records manually is eliminated, biometric time clocks not only help in saving employee time but also overall administrative costs through-
- Reducing staff overhead
- Removing the requirement of resetting employee passwords
- Replacing stolen or lost ID cards
When attendance data is transferred to the respective payroll processing software solution, payroll staff gets access to the most precise and updated information, thus reducing payroll errors.
Eliminating Ghost Employees - Millions of dollars are lost annually by businesses and government organizations due to non-existent employees who have been fraudulently added to the organization's payroll system, or whose departure from the organization was never properly processed.
Through the utilization of the biometric time clock, both business and government employees can be effectively recognized virtually. This helps in eliminating the need for duplicate registrations while eradicating ghost employees altogether. Moreover, this technology is helpful in establishing punctuality and accountability overall.
Integration of biometric time clock systems can help in managing time and attendance as well as aiding in the reduction of labor and payroll costs. With the help of an automated biometric attendance time clock, companies can look forward to increased efficiency, productivity, and solvency.
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