Four Ways To Know If Your Investment in a Time And Attendance System Is Worth It

Many analysts are predicting a downturn in the economy.  However, that does not mean companies should stop looking at an investment in upgrading their time and attendance systems.  Here are four things to review when looking to justify an investment in a new system.

1.  Increased Productivity

One way to measure new technology investment is if it saves a person time.  Anytime there is a manual entry of any kind, there is a chance for human error.  The time to manually enter data into a system limits the time for other tasks.  If tasks are done more quickly, and with fewer errors, the system is worth the investment over the long term.  The opportunity cost of quicker entries should be considered when evaluating a new system’s long-term expense.  One example is time off requests.  While it may be just as easy for an employee to request time off by paper or electronically, the back-end processes are much more manageable with new systems.  The manager can receive notification of the time off request electronically, see if they have coverage, and decide on approval in one easy step.  Once approved, the system can automatically put the time off request on the schedule, time card, and payroll simultaneously.  Knowing if the new system allows employees to do other tasks helps assess your investment. 

2.  Improved Employee Engagement

New technology should encourage employees to use it because it makes things easier for them.  If an employee does not use a new system, it is not worth the investment.  For example, having a clock with facial recognition makes it easier and safer for an employee to clock in and out for the day.  In addition, it is much more efficient for supervisors and payroll departments because entries are automatically placed on the employee’s time card.  Another example is time off requests.  While it may be just as easy for an employee to request time off by paper or electronically, the back-end processes are much more manageable with new systems.  The manager can receive notification of the time off request electronically, see if they have coverage, and decide on approval in one easy step.  Once approved, the system can automatically put the time off request on the schedule, time card, and payroll simultaneously. 

3.  Make Compliance Easier

In recent years, the number of fair-labor practice lawsuits has skyrocketed, with the primary complaint being working more than 40 hours a week without overtime pay.  As a result, in 2021, the U.S. Department of Labor recovered $164 million in back wages.  Modern time and attendance systems can create overtime parameters and premiums to record the proper employee wages automatically.  A time and attendance system that automatically records and archives time cards can save your company thousands of dollars.  Factoring in the cost savings of these potential penalties is vital to access your investment.    

4. Increased Retention

The ‘Great Resignation’ places higher importance on employee retention.  Various polls state it can cost between 33% – 60% of a worker’s salary to replace an employee when factoring in lost production, cost-per-hire, and other resources.  Therefore, it is vital to find ways to retain employees.  Linking your time and attendance systems to an Earned Wage Access application has proven to increase retention.  Over half of employees would work harder and stay longer at a company if they had immediate access to their pay.  Since just 6% of employers currently offer this service, Earned Wage Access is a competitive advantage in the marketplace.  Remember to evaluate the reduction in turnover rates in your analysis when evaluating the investment in time and attendance systems.

The justification for adopting a new time and attendance system should be evident in increasing productivity, eliminating errors, staying in compliance, and reducing turnover.  All of this increased productivity should reduce costs in the long term.  

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