Punch-Time Clocks Can Harm Your Company’s Finances

Written by: Allied Time

Read below to see how new-age technology has led to the exit of older time clock models.

The century-old punch-card time clocks are a staple system in many businesses today. Their simplicity and cost-efficiency has led to many business owners to employ these machines in their workplace. However, its minimalistic design has led to employees finding “loopholes” around the system in order to get paid slightly more.

One of the most frequently used methods that is still a problem today is the “buddy punching” scheme where an employee punches the card of another that is either late or absent. The end result is an unknown figure that’s being paid out to those that wholly do not deserve it. As a result, more companies opt to use the biometric time clock instead, which eliminates buddy punching.

There have been rising concern however, over the information that someone inputs through a fingerprint time clock. Despite its appearance, any information that’s logged in the system like a personal fingerprint won’t be used for any criminal background check or anything of the sort. Its sole purpose lies in tracking time and attendance. The fingerprint itself is just a numerical value that the computer recognizes and identifies through its algorithms.

Through the use of these systems, businesses and companies, especially ones with a high turnover rate, are experiencing much more success accurately tracking their employees’ time and attendance. Most time clocks also include the ability to compile reports that managers and payroll administrators can open up and look into on their computers. At each pay period’s end, a computerized report of each employee will be delivered to the administrator for further verification.