Employee Time Clocks For Small Business | 4 mins read

The Benefits of Employee Time Clocks for Small Business

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Hanh Truong

By Hanh Truong

Why You Should Consider Employee Time Clocks for Small Businesses

Employee time clocks continue to be a mainstay for small businesses of all functions. With small teams, entrepreneurs oftentimes have to balance operational activities, from running the company to completing payroll. Time clocks help small business owners alleviate their workload, by automating the process of tracking employee work hours and productivity.

These systems allow employees to clock in and out from work via a web browser, software program, or mobile device. The tool then consolidates all data regarding employee attendance and punctuality. Business owners can use these insights to improve their workforce management and efficiency. Before implementing an employee time clock into an organization, business leaders should first consider the pros and cons of the system to ensure success.


The practice of punching into a time clock is generally more important for businesses that rely on staff members being present at work. Retail stores and restaurants, for example, need employees on shift to serve customers. Aside from these positions, office jobs may not reap many benefits from time clocks. Time, in this instance, is not the only indicator of productivity. In fact, employees in an office may work more efficiently when they have a full night's rest than when they wake up early and hurry to work.

However, with time clocks, employers can guarantee that they are paying their employees for the hours they worked. It eliminates the possibility of staff members over-reporting their time records. In turn, businesses can control their labor cost spending.

Online employee scheduling software that makes shift planning effortless.
Try it free for 14 days.


There are various advantages and disadvantages of having a time clock system on employees' ends, as well. For instance, having to punch into time clocks create a workplace culture that depends on verification, rather than trust. This can make it hard for employers and employees to build a balanced relationship. On the other hand, having time clocks will delineate when a workday begins and ends. Employees can use this structure to improve their work-life balance and take time to recharge.

The Benefits of Employee Time Clocks for Small Businesses

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Despite some of the challenges that time clocks can impose, there are numerous benefits of having a time tracking system. For example, time clocks ensure accurate data, which translates to accurate payroll. This is especially important for small businesses, considering their modest budgets. Other benefits to having a time clock app or software program include the following.

1. Increase Employee Job Satisfaction

Modern time clock software is equipped with advanced features such as mobile app capabilities, secured data storage, and scheduling. Employees can easily clock in and out from work via their phones, instead of spending time calculating hours and using time punch machines. Time clocks also reduce pay stub error, since data from the app is accurate. These factors increase convenience and reliability, which contributes to higher morale and job satisfaction.

Online employee scheduling software that makes shift planning effortless.
Try it free for 14 days.

2. Easily Manage Remote Staff

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Workers are embracing the concept of remote work because of its flexibility and comfort. Managers, however, are oftentimes concerned that working remotely will impact productivity. Time clocks can alleviate this worry by allowing employees to track their work hours and project completion from any remote location. Managers can access real-time insights to check in on their staff, ensuring they are clocked in and taking breaks, remotely as well.

3. Automate Payroll

Manual payroll can be a time-consuming and laborious task, as it requires collecting time cards, data entry, and calculations. Time clock systems can automate this entire process with just a few clicks. In fact, studies show that an employee time tracking app reduces payroll processing time by 15 to 35%. Since the app already stores employee work data, managers can just send or sync it to their payroll software. This makes payroll more efficient and reduces human errors too.

4. Mitigate Fraudulent Timekeeping

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The latest time tracking clocks can prevent fraudulent timekeeping activities. These practices range from improperly rounding time data and buddy punching, which is when employees clock in for their colleagues. Mitigating these acts via time clock software will significantly save payroll costs and time. Time trackers will also improve employee accountability and ensure staffers are following protocols.

Key Takeaways of Employee Time Clocks for Small Businesses

  • An employee time clock is the latest device that small businesses are adopting to track employee work hours and productivity.
  • Time clock systems usually come in the form of web browsers, software programs, and mobile apps.
  • There are various pros and cons of using time clocks that employers and employees will experience.
  • There are a lot of benefits, however, of using time clock trackers, such as improved job satisfaction and management of remote workers.

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