8 benefits of using an employee clocking in system

In this blog, we’ll look at how implementing a clocking in system can boost your organisation in terms of compliance, productivity, payroll accuracy, and more.

What is an employee clocking in system?

A clocking in system is a platform that enables organisations to track and record employee working hours. A clocking in system might be cloud-based software, whereby employees log their start time, break times, and end times at work through an app or via their desktop, as well as fill in timesheets to detail what they’ve been working on.

A clocking in system can also refer to physical clocking in terminals located on-site, which employees use to clock in at the start of their day, and clock out at the end of their shift. Systems like these might also enable access to the premises, and require facial or fingerprint recognition to clock employees in, or a fob or key card might be used instead.

What types of organisations need a clocking in system?

A clocking in system is a valuable tool for a range of industries and business sizes. There are different options, including cloud-based software, physical clocking in terminals, or a combination of the two. Whether you’re running a small business or managing a large corporation, maintaining precise employee hour records is crucial.

Industries such as retail, hospitality, healthcare, and manufacturing, where shift work and varying hours are common, may typically find a time tracking system beneficial. They streamline attendance data, prevent time theft, and ensure employees are accurately compensated for their work.

In office settings, where hours may be more consistent, clocking in systems enhance attendance tracking and support productivity. With added timesheet software functionality, these industries might use a system to track billable hours, project progress, and different activities across various departments.

Smaller and medium sized organisations may also benefit from clocking in systems. With limited resources, organisations like these might find clocking in solutions especially helpful in reducing the burden of manual record-keeping.

Whatever the organisation or industry, a clocking in system helps to ensure global compliance with regional and local labour laws, such as the EU Working Time Directive. This directive stipulates that organisations must implement a reliable, accurate and accessible way of monitoring employee working time, to ensure that overtime is being recorded, and that the average maximum number of weekly working hours in not being exceeded. Failure to do so could result in fines for an organisation that is not accurately tracking its employees clocking in and out times, and adequate break and rest periods.

What are the benefits of a clocking in system?

There are many benefits to implementing a clocking in app, but we’ve selected 8 of the key advantages that a time management system gives your organisation:

Improved accuracy

A clocking in system allows employees to clock in their exact start and finish times, including break periods, so you can see their precise working hours for any given day. The correct amount of overtime can also be logged, so you’re sure that extra hours are not being missed and employees can be compensated accurately.

Integration with payroll and HR systems

Many time tracking or clocking in systems can be integrated with your existing payroll software, as well as core HR platforms. That means time and attendance data can be automatically fed into these systems, so things like overtime, absences, lateness, and sick pay are correctly accounted for and logged.

Compliance with labour laws

Countries around the world have their own labour laws and regulations, which provide guidelines and/or legislation as to the maximum number of working hours an employee should be performing each week. The EU Working Time Directive dictates that the maximum average number of weekly working hours is 48, with adequate rest periods also included. Businesses within EU member states are required to track the working hours of their employees to ensure these limits are not exceeded.

Reducing time and wage theft

An employee clock in, clock out system helps to minimise things like time theft and wage theft, where, for example, manual timesheets might be filled in incorrectly with short breaks overlooked or forgotten. Likewise, ‘buddy punching’ might be an issue, whereby employees clock in for their absent colleagues, so someone appears to be at work when in fact they are not. A clocking in system helps to avoid issues like these, and ensure that accurate records and compensation are being kept up to date.

Transparency

A clocking in system provides a reliable, objective way to track employee time, fostering a sense of fairness and transparency. Organisations are therefore able to view and analyse working hours in a consistent, automated way, knowing that the data is accurate. Persistent lateness can be identified as a pattern and addressed, and consistently high performers can be recognised with fair rewards.

Visibility over activities

Depending on the system you implement, time spent on specific projects and activities can also be tracked using online timesheets. Employees can assign chunks of time to various areas of their work, so that they, and their managers, can see a breakdown of how much resource is going into certain projects.

Security

Security is improved with a clock in system thanks to the real-time overview it provides for exactly who is working, either remotely or physically on the premises. That’s important information to know from a health and safety perspective, so you can be aware of your employees’ whereabouts and their safety during working hours.

Automation of time and attendance data

Automating your time and attendance data through a clock in system helps to significantly lighten what would traditionally be a cumbersome manual task. And it’s not just managers and HR who would see a difference – payroll and overtime processes can be streamlined, and employees no longer have to fill in manual timesheets, which take time in themselves.

What to look for when choosing an employee clocking in system

There are many clock in systems out there, and all are intended for different users – whether that’s based on company size, industry, specific needs, or different types of employees.

Here’s some key points to consider when choosing an employee clocking in system:

Functionality & Customisation

Define what your requirements are. Are you looking for a simple clock in app, a complete time tracking system, online timesheets, advanced reporting tools, a mix of the above, or something else?
Consider how your new system should be implemented. If you’re a large scale organisations operating from multiple locations, do you wish to deploy a new system throughout the entire company, or trial a specific location first before rolling it out?
Decide on the level of integration and customisation you need. Do you wish to integrate your new system with your existing HR tech stack, and if so, is your chosen system capable of doing that? Do you require a system that supports employees on different contracts? Would you like to be able to brand your new system, to provide a seamless employee experience?

Cost

Consider the cost of a new clock in system, including any set up fees or ongoing subscription charges. Does the long-term value you’ll get from a new system sufficiently outweigh the short-term costs?

Scalability

When looking for a new HR system, it’s always best to consider the future and the longevity of any platform you choose. As your organisation changes and grows, will your new system be able to grow with you? Consider how easy it is to add new users, change admin permissions and update system settings. Also explore add-ons and additional features from your chosen provider, as these may be good options to implement further down the line as and when you need them.

For more information on choosing the best time tracking software, you can read our blogpost here.