Posted on 28-Aug-09 by The Timekeeper

Part Three

OK. So in Part One, we talked about the inexpensive and easy-to-implement timesheet or time slip. In Part Two, we learned about the traditional mechanical punch clock and its snazzier electronic cousins. Now we’re going to cover your options for software-based workforce management.

Because software-based time and attendance is a more complex option than the simple timesheet or punch clock, you’ve got a few more considerations to take into account when evaluating these systems. Let’s take a look at the two biggest: whether to go with an in-house installed or a hosted solution, and how to collect your employee’s punches.

In-house or Hosted?

There are two basic types of software-based products: software installed in-house (that is, software you put on your own system and run locally) and hosted software (sometimes called “software as a service” — SaaS). This is software installed on somebody else’s system that you log in to over the Internet.

Neither one is better or worse than the other across the boards. There are advantages and disadvantages to each. You just have to decide which one is right for you and your business.

Installed Software

• One-time cost to purchase. There may be support contracts or ongoing licensing available, which may provide you with benefits such as no-additional-cost technical support or free software upgrades, but generally these are optional.
• You have control over the computer where the software is installed and are responsible for keeping it up and running. You’re also usually responsible for installing and configuring the software (or for paying an expert to handle the installation for you). This generally makes installed software a better choice for companies that have some sort of in-house technical expertise.
• You control your data, because the database is there on your computer. If the original software vendor goes out of business, this won’t affect the availability of your company data. On the other hand, this also means you will be responsible yourself for backing up your database and keeping the data secure.
• In the absense of a support contract or licensing agreement, you may find you have to pay for software updates and upgrades.

Hosted Software (SaaS)

• Little to no initial cost, but ongoing monthly fees. Many web-based/hosted software solutions offer free trials or no-cost setup. These services are paid for on a monthly subscription basis. While the initial startup is free / inexpensive, the monthly subscription costs will add up over time.
• The vendor is responsible for maintaining the software and keeping the server up and running. They will take care of installing software updates and upgrades (usually at no cost to the customer) and handling any technical issues that may arise. This may make web-based time and attendance an attractive option for companies that lack in-house technical expertise.
• The vendor controls your data. Sadly, there have been instances of SaaS vendors in various fields suddenly going out of business and leaving their customers high-and-dry without access to their company data. You will need to make sure your vendor makes it easy for you to download backup data, and that you regularly do so.
• Low to no-cost tech support. Generally the cost of technical support is included in the monthly subscription fees, so you don’t pay extra if you have to call for help.

Once you’ve decided whether you want to install software locally or sign up for a hosted service, your decision-making isn’t over. The next thing to decide is how you want your employees to clock in and out. You’ve got a lot of choices here: PC-punch, telephony, badge terminals, biometric terminals… (hey, nobody said sophistication was going to be easy!)

Punching In and Out

Employees Punch PCs, Boss Thrilled

The most basic method of data collection for software time and attendance products is PC-punch. Simply put, employees call up the application on a PC and clock in or out. For a standalone installation, you simply install the software on a single PC which you set up in a central area, and employees use that PC to clock in or out — very much as they would use a punch clock, just by logging in instead of inserting a time card. If you opt for a network-enabled solution, your employees can call up the application from the network-connected PCs on their desks. In the case of web-based software, they simply launch their web browser and log in to the vendor’s “clock in and clock out” interface.

An advantage is it’s very easy. But it either requires a dedicated PC (for a stand-alone installation) or that all employees have a network-connected PC on their desks (for a networked installation) or that all employees have access to an Internet-connected computer (for a hosted solution).

And this method of clocking in and out is potentially as vulnerable to buddy punching as a punch clock and time card, as it’s very easy for an employee to clock in or out for another as long as they’ve got the other’s user ID and password.

The Red Badge of Courage (or Timekeeping, as the Case May Be)

Some companies prefer to have employees wear badges — perhaps for identification and security purposes — and use those badges to clock in and out. Many software solutions support the use of badge terminals.

Some badge terminals require the employees to swipe the badge through a reader slot (sort of like what you do when you use a debit or credit card at the store). These readers scan magnetic strips or bar codes on the badges.

Other terminals — proximity terminals — sense a transmitter in the badge and can clock employees in and out when they pass the badge near the front of the terminal. There are even some systems that will dynamically track an employee’s location within the facility by reading a transmitter in their badge. (These systems tend to be pretty expensive.)

Personally, I prefer proximity badges for most situations. While proximity badges tend to cost a little more than mag stripe or bar code badges, generally speaking, they’re thicker and more durable. Plus, mag stripe and bar code readers may require periodic adjustment and cleaning in order to continue to read the badges accurately, while prox terminals are virtually maintenance-free.

Again, though, as with PC-punch, badge systems are vulnerable to buddy punching, as an employee needs simply pass his or her badge off to a co-worker, and the co-worker can easily clock them in or out.

Badges? We Don’t Need No Steenkin’ Badges!

If you want to stop buddy punching in its tracks, the answer is biometrics. Biometrics requires an employee to use some body part or characteristic — such as a finger or their hand, a voice print or their retinas — to identify themselves to the system before they can clock in or out. Basically, the employee has to be physically present or they can’t clock in or out.

There are many different forms of biometric identification which get used for various purposes. You’ve probably seen spy movies where they use retinal scans and/or voice print analysis to allow access to top-secret facilities, for instance. While those look snazzy, they generally aren’t suited to time and attendance because of cost and complexity. The two most popular biometric systems for time and attendance are finger-scan and hand geometry.

Sometimes employees have privacy objections to biometrics. They’re afraid their fingerprints will be somehow used to track them, for instance. You can reassure them the scans done for biometric time and attendance are far too crude to be used by any law enforcement agencies and cannot be used to trace their activities in any way.

Acroprint Time Recorder Company has put together a nice set of Frequently Asked Questions about biometrics (and their answers, which makes the resource even more useful!) which you can find by clicking here. If you’re thinking about biometrics but need more info, or if you’ve decided on biometrics and you’re wondering how to deal with potential employee questions, this FAQ could be helpful.

Other options

There are all sorts of other options. For instance, some systems (particularly SaaS/hosted systems) offer a telephony option, which allows employees to clock in and out over the phone. This can work really well when you’ve got a mobile / remote workforce, because they can use their cell phones to clock in and out.

Basically, if you’ve got a need, there’s probably somebody out there who can fill it.

In the final analysis

There you have it… basic time sheets, traditional time clocks and automated systems. Which one you choose will depend on your business needs, your available resources and your budget.

The main thing is simply to use something. The law requires you to maintain accurate time records for hourly and salaried-nonexempt workers. Not having those records can open you up to wage and hour audits, fines and penalties. Inaccurate time tracking (and the resulting payroll errors) can lead to disgruntled employees — which in turn can lead to wage and hour lawsuits.

Point is, no matter how much you spend on your time and attendance tracking, not tracking time is bound to be more expensive in the long run.

So get out there and start tracking!

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