Just Don't!

Recently, a company accountant (we’ll call her Mary) approached me to purchase a new time and attendance system to replace their older punch card system. 

Many people want a simple, low-cost electronic solution, but I explained to Mary that even the best entry-level time clock system isn’t suitable for companies with more than 100 employees, let alone one with 300 employees. Here’s why… 

Below are the main functions of a time and attendance system and a score sheet on how entry-level systems perform in these areas for larger businesses. 

Entry-level systems will accurately record attendance if an employee clocks in. However, when employees forget to clock in or out, finding and correcting missing clock events can be cumbersome and time-consuming. 

Entry-level systems often struggle with break recording. Their limitations include inflexible rules on the number and type of breaks, inaccurate rounding that impacts calculations, and often the need for manual adjustments to employee hours. 

Entry-level systems lack robust functionality for complex business rules and awards, leading to more manual adjustments. This adds to payroll processing time and increases the likelihood of human error, which can result in incorrect payments. 

While entry-level systems can categorize time, they’re typically limited in the number of categories they can handle, which means more manual processing and added costs. 

Most entry-level time clocks have limited capabilities when it comes to recording leave. A company of 300 employees might have 20 or more leave categories, far beyond what most entry-level systems can handle.

Attendance reports help managers monitor department labor costs and are essential for budgeting and oversight. 

Entry-level systems generally have limited reporting functionality and restricted access for additional administrative users. 

Exporting payroll data directly to payroll software reduces the risk of errors and the time spent on manual entry. 

However, entry-level systems typically have limitations in the data they can export, accuracy of that data, and compatibility with popular payroll software. 

In larger companies, multiple people review and edit attendance records. Entry-level systems rarely provide an audit trail, making it difficult to track changes and identify who made them. 

Employee records must be retained for seven years. Without regularly backing up data, you risk losing records in case of software or hardware failure. Advanced systems have more robust backup options, making them better suited for long-term record-keeping. 

Cybersecurity is a growing concern. Many entry-level time clocks, often sourced from overseas, may have less stringent security measures. Advanced systems are developed locally with secure databases and enhanced user and hardware protections. 

Entry-level systems often come with minimal support, as providers frequently sell multiple brands, diluting their service resources. For a larger business, reliable, specialized support is essential for long-term success. 

Using a couple of entry-level time clocks for 300 employees might cost as little as $3,000 initially, but such a system will likely need replacement within five years due to reliability issues or changing business needs. 

When managing mission-critical employee attendance data for 300 employees, relying on a system that costs less than a mobile phone is  madness, and I simply can't be a part of that.

jimc@timeandattendance.com.au

1300 553 254

0437 772 977