Payroll processing is evolving. So are the technologies used to track time and attendance. How does your company track time and pay employees? If you are still using paper time sheets or punch cards, have you ever considered upgrading to a digital system that integrates fully into your payroll solution?
Technologically advanced methods of tracking time and attendance are revolutionizing the way companies handle payroll processing. Unfortunately, there are still plenty of businesses hanging on to the legacy system. Those systems have long outlived their usefulness to the point of actually being substantially problematic. Employers still using paper and punch cards need to seriously consider upgrading.
There are three reasons to upgrade time tracking systems in the digital era, according to BenefitMall:
1. Preventing Time Theft
It is unfortunate to have to talk about it, but legacy systems expose employers to time theft. It has been suggested that as many as 30% of retail and service industry employers still using legacy systems experience time theft at the hands of employees who intentionally falsify time records. This is not good.
Upgrading time and attendance to a digital solution requiring either biometric or pass code authorization greatly reduces the likelihood of time theft. Digital time tracking does not rely on the word of workers as to the hours worked, it actually keeps track of those hours by forcing employees to sign in and out using a system that is much harder to arbitrarily manipulate.
2. Integration with Payroll Software
Legacy systems involving paper time sheets or punch cards were the best way of doing things prior to the digital age. That is no longer the case. Using such systems now requires someone to actually sit behind a computer and enter the manually generated data into the payroll software. Not only is this highly inefficient, it is also an open door to payroll errors that would otherwise be avoided with a digital system.
Digital time tracking can be fully integrated with an employer’s existing payroll software to reduce errors and increase efficiency. With digital time tracking, double entry is no longer required. Exporting data to separate spreadsheets for tax reporting purposes is no longer needed either. Everything is handled by payroll software through an integrated system that uses time tracking data to complete multiple functions across the payroll spectrum.
3. Flexibility of Structure
The third and final reason to consider upgrading time tracking systems is one of flexibility. In other words, technology now makes it possible to track time in limitless ways. One of the more common solutions is the kiosk model in which employees clock in and out using a central time tracking station. They may use digital ID cards that are scanned, or they may use a keypad system to enter their employee ID number at the start and end of each day.
Another company may use a mobile app to keep track of employees who are always on the go. Employees bring up the app to clock in at the start of the day, track their various tasks throughout the day, and clock back out in the evening. Everything is handled through a cloud-based time-tracking solution.
Legacy time tracking systems served their purpose when first introduced decades ago. But like everything else, tracking time and attendance is changing along with digital technology. Continuing to use legacy systems is continuing to rely on old ways of doing things that do not necessarily play well in the digital age. If your company is still using legacy time tracking, it is time to give serious consideration to upgrading to a digital solution.