In the competitive environment, organizations have to streamline operations to stay viable and productive. However, one of the most detrimental and frustrating trends that many organizations faces is the employee attendance issue. According to the Nucleus Research in 2008, 19% of employees admitted to buddy-punching. In a recent survey, 60% of respondents said that their employees aren’t accurately reporting their time, or they don’t know if their reported time is accurate. And you might be surprised by the fact that 20% of every dollar earned by a U.S. company is lost due to employee theft according to American Society of Employers and recently The Boston Globe and Denver Post newspaper reported that U.S. companies lose nearly $400 billion per year in lost productivity due to “time theft” or loafing.
Hassle timekeeping and workforce mismanaging negatively impact on organizations’ benefits including:
Increased labor costs such as : scheduling, staffing, training temporary help and overtime
Lowered morale which contributes to overtime and turnover
Reduced productivity which puts the organization’s bottom line at risk
To response to these issues, biometrics based workforce management which used fingerprint, iris, vein recognition to track the time and attendance of employees is considered as the most accurate and reliable system. This kind of workforce and management system can help employers take initiative in all types of work by eliminating manual inputs, time theft, and identity card exchange or buddy-punching.
The two paramount reasons that an organization should install a biometric time and attendance system are to increase the information accuracy and reliability. There is no way that your staff can cheat on you about their work hours or steal from you. Therefore, a biometric time and attendance system could help organizations gain a complete and accurate visibility into your workforce by having a real time access to time reporting. A biometric time and attendance system can give employers better insight into the employees’ work, time spent on their work, and return on investment of their work. This information allows employers to more appropriately and proportionally allocate labor across workforce. Besides, your payroll becomes streamlined with the real-time recording and auto processing, which helps to process accurate payroll and ensures that employees are paid properly.
Moreover, a biometric time and attendance system can help increase business productivity and efficiency. Running a payroll that involves tracking employee time and attendance on time cards and time sheets can be highly stressful. Especially for big companies with hundreds or thousands of staff or companies with staffs working in different sites; the management will become costly, overwhelmed and time consuming. Given an example in Vietnam Industrial Parks, with a large scale of worker size which is average about nine thousands of workers working in each industrial park in 2015, an automated time and attendance management system can result in ongoing cost savings, such as a reduction in human-generated payroll errors, elimination of overtime costs, as well as saved wages from increased productivity.
Due to the high demand of maintaining information accuracy and reliability in time and attendance system, the workforce management market including hardware and software is quite attractive to many biometrics and technology participants entering. The survey from Axsium Group in 2010 found large companies save $1,600 per employee, on average, after implementing a workforce management solution. According to the “New Research on the Global Market for Workforce Management Solutions” report, the market growth forecast from 2013 to 2018 is $1.5 billion. Besides, SaaS is considered as the workforce management market leader which account for over 50% of the software market by 2018. Finally, the report also states that fingerprint gain a huge demand in the biometrics-based time and attendance management system market.
The benefits of a biometric time and attendance system are numerous. Managing workforce and processing payroll accurately and quickly should start with reliable data. In addition, a biometrics-based time and attendance system also help organization reduce overtime and payroll costs, get control over labor costs, reduce errors and improve efficiency by automated time registration and collection.