For small businesses, accurate time and attendance is a serious issue. It can lead to lower profits and even legal action if not handled properly. Fortunately, biometric technology has made it easier than ever for businesses to combat employee time theft like "buddy punching" and ensure accurate records.
In this article, we’ll discuss how biometric time clocks work and the ways they can help save money and protect your business from the DOL.
How Biometric Time Clocks Work
Biometric time clocks use physical characteristics such as fingerprints or facial recognition to identify employees when they clock in and out for work.
The physical characteristics are compared to the information stored in the system’s database, and once authenticated, an accurate record of when an employee clocked in/out will be available on their timesheet. And this data is then used for payroll, attendance tracking, and other administrative tasks.
The Benefits of Biometric Time Clocks
Countless benefits come with the use of biometric time clocks, making them a must-have for any business.
First, since the system requires a physical characteristic to authenticate each employee’s identity, it is virtually impossible for an employee to clock in or out without being present. Making it much harder for employees to commit time theft.
Second, since biometrics provide more accurate data than traditional methods like punch cards or paper timesheets, it makes managing payroll easier and reduces the risk of errors.
Finally, having accurate time sheets for your employees is incredibly important if you were to get audited by the Department of Labor. With biometric time clocks, you can be sure that the records you provide are accurate and up-to-date.
How Do Employees Steal Time?
Typical forms of time theft include:
Buddy punching - Buddy punching is when one employee clocks in or out on behalf of another employee. This form of time theft can be hard to detect. But, biometric time clocks make it nearly impossible for employees to commit this type of fraud because each employee must present their unique biometric data to clock in or out.
Longer lunch breaks - Employees may take longer lunch breaks than what’s allowed, and a biometric time clock would be able to accurately detect when that happens. This can help businesses save money by ensuring employees are taking appropriate lunch breaks.
Human error - With biometric time clocks, employees won't have to worry about forgetting a code or entering incorrect numbers as the system will automatically recognize their unique characteristics.
In summary, biometric time clocks are a cost-effective and secure way for businesses to combat employee time theft and ensure that their payroll process runs smoothly and efficiently.
For small businesses looking to combat time theft and reduce payroll costs, investing in a biometric time clock is a smart move that could ultimately save them money. And with so many benefits to be had from implementing this kind of technology into their business operations, it’s no wonder why so many small businesses are taking advantage of it!
If you found this article helpful, here are some others you might like:
- The Biometric Time Clock: Everything You Need to Know (with examples)
- Fingerprint Time Clock: How Can it Benefit Your New York Business?
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- The Pros and Cons of Paying Employees with Payroll Paycards
- Why Employee Printback Checks are Good for Your Business
- How Will the New York State Secure Choice Retirement Savings Program Impact Your Business