3 Advantages of Having an Automated Time and Attendance Software

According to a survey conducted by Wasp Buzz, 80% of workers have admitted to being guilty of time theft. This is an alarming percentage, and chances are your company is a victim. Although completely eliminating time theft is impossible, there are ways to avoid it, or even reduce it. Not using the proper time tracking systems, like using paper time cards, for instance, can lead to “buddy punching”, which contributes to thousands of dollars being lost by businesses every year. The best solution to this problem is to switch to an automated time and attendance tracking system. A good automated time and attendance software is designed to flow directly into payroll, eliminating the need for double data entry. According to the American Payroll Association (APA), 65% of the organizations surveyed said they were either in the process of switching to, or already used, an automated time and attendance software to track their employees’ hours. So what are the advantages of switching to an automated time and attendance software? Read on.

Avoid Manual Calculations

With so many arduous tasks that HR managers have to complete throughout their days, it makes sense to automate some processes in order to increase efficiency and productivity. One thing we see a lot in the payroll and human resources industries is payroll and HR professionals manually calculating time cards. There are many risks when it comes to manually calculating time cards, the most prominent of which is the high likelihood of human error. After all, we are human and we make mistakes. Miscalculating can result in overpaying or underpaying your employees. According to the American Payroll Association, the estimated percentage of human error in manually calculating time cards is between 1% and 8%. An automated time and attendance software can be the solution to that problem.

Save Money

The cost of a time and attendance software varies and usually depends on whether you chose a cloud-based solution or not. I recommend going with a cloud-based option because of its many benefits (read more on that here). Many small businesses stray from cloud-based time and attendance software because they believe the cost is too high. However, they fail to see the savings in it all. Take into account the amount of time your employees spend adding up hours worked and translating those hours into payables while also deducting taxes and other figures from pay. This entire process can be streamlined with the right payroll and time and attendance software in place. If you don’t think your company can’t afford it, do some research and get quotes from different providers; you may be surprised by your findings.


Reduced Absenteeism

Some time ago I wrote about the cost of absenteeism in the workplace and how to control it. In the blog, I mentioned some of the causes and the ultimate solution to reducing absenteeism: tracking your employees’ absences (hours). By doing so, managers can report the reasons for being absent and be able to forecast in order to make better schedules, which results in more motivated and productive employees. Tracking absences also ensure that overtime limits are not surpassed, reducing burnout, improving productivity, and saving you from having to pay overtime wages, which are mandated by the EEOC. When managers track employees with unusually high levels of absenteeism, they can decide on the appropriate disciplinary actions that must be taken.

Helps You Stay Compliant

Depending on the location, nature, and industry of your business, you may face numerous requirements related to time and attendance tracking. Studies show that the most common cause of noncompliance is inaccurate record keeping, which leads to payroll errors and fines from the IRS. The best way to avoid noncompliance is by having an automated and cloud-based time tracking software that will allow you to track time accurately, automate rules around compliance, and provide required time and attendance data in case of any IRS audits. Keep in mind that the Department of Labor can request an audit of your company at any time, so having a cloud-based time tracking solution can ensure that the data collected is available at all times so that you are able to provide the necessary records when requested. Plus, you can get rid of all those bulky filing cabinets taking up valuable office real estate.

Utilize Advanced Technology

There are many different ways to collect your employees’ hours, depending on the software you choose. Some solutions, like Dominion’s Time and Attendance Software, allow you to collect the data through a mobile punch, a computer, biometric time clocks, or even a free app.


Biometric time clocks collect time electronically, which means you will not have to manually enter employee hours into your system. This will increase productivity in the long run by reducing the time it takes to run payroll, while also increasing data accuracy by automating your time tracking process.

If you are interested in Dominion’s Time & Attendance Software and would like to receive your first month FREE, click here.