management system

3 Signs That It’s Time To Use Attendance Management System

  • 0

In the last few years, if you are an HR who is managing employees, you will know how much effort, time, and cost goes into it. Some of the processes are so interrelated that a mistake in one causes an issue in another almost immediately.

Attendance management is one of these processes that impact other processes like payroll management, performance management, and so on.

With an increasing number of recruitments every month, proper management is becoming more stressful and causing anxiety among the HR staff. This calls for a solution that can help in managing employee attendance with efficiency and effectiveness. An online attendance management system is the solution that you should start using.

How to Know if You Should Use an Online Attendance Management System?

When you are tracking the attendance of employees using the “old ways”, it often brings a number of problems. If you are unsure about shifting to the online attendance management system, the following signs can make it certain.

First Sign: Attendance Mismanagement – Inaccuracy, data loss & time theft

The clock-in or clock-out time is entered inaccurately by mistake. This means that at the end of the month before payment processing, HR will have to put in extra hours to check for inaccuracies. This means inefficient use of resources of the company.

So, when anyone asks why HRMS software is important, this is one of the reasons; chances of inaccuracy and data loss are minimized.

Another case is when the employees are late due to any reason like traffic. So, after reaching the office they enter the wrong check-in time. This is called time theft. It means that the employee is stealing time. It ends up causing financial loss for the organization.

In addition to the above, data loss can also be a huge issue. Manual attendance sheets can be easily misplaced or Google attendance sheets can be easily edited offline by mistake. The result is, that the real attendance data is lost.

Some stats that will help you in making up your mind about the transition to the online attendance software:

  • Actual loss from the company’s gross annual payroll can go as high as 7% because of time theft. (American Payroll Association)
  • More than 40% of employees admit to marking their attendance with exaggeration when it is entered manually. (Software Advice’s Study)

If you adopt online attendance software:

  • Biometric verification will make sure that employees do not add the wrong clock-in timing.
  • Attendance tracking will help in reducing errors and ensuring data security.
  • Real-time attendance data will help in tracking attendance with accuracy. It helps in reducing payroll costs from a minimum of 2 to a maximum of 8% (Research by Aberdeen Group)

Second Sign: Different Working Setup – Flexibility is not a liability

Companies are encouraging flexible work settings by offering:

  • Work from home
  • Remote work
  • Hybrid work setting

The above work settings do not match well with the “old” attendance system. Monitoring the attendance of the employee working from home is not possible with a manual attendance system.

The number of working hours cannot be taken at face value. Unreliable data is imminent in such scenarios.

Solution: An online attendance system allows the employees to mark their attendance from anywhere. Opting for this solution also helps the employees by offering them a way to mark their attendance with flexibility. Whether one works on weekends or at night, it is no longer an issue. This system will offer transparency and accountability.

Some stats that will help you in making up your mind about the transition to the online attendance software:

  • 80% of employees favor remote working over the alternatives (Owl Labs Survey)
  • In the last decade, the growth of remote working has jumped by more than 100%. (Global Workplace Analytics)

If you adopt this attendance software:

  • An online attendance system is helpful in remote working because it can track logins, task completion, and other activity levels with accuracy.
  • Employees are favored in marking their attendance with flexibility.
    • This helps in increasing employee satisfaction
    • It decreases employee turnover rates

Third Sign: Compliance – Labor Regulations

To have a perfect compliance system, recording the total working hours is not enough. Overtime should be accounted for. Other regulations for tax deductions, fund deductions, bonuses, etc. will be calculated automatically once attendance data is entered for all employees.

In case the rules are not followed, like in a manual setting chances of error are higher, and financial penalties and other legal consequences can occur.

The automatic attendance management system thus offers a solution for these problems. Staying updated with labor laws is easy by using automation.

Did you know?

  • Violations of wages and labor laws, once recorded, can help companies in reducing costs. The US Department of Labor collected more than 1.5 billion US dollars in 2020 because of these violations.

So, automate your compliance checks, avoid penalties due to non-compliance, and record data accurately


Human Resource Management is becoming difficult because of how fast transitions are needed. Making sure that all employees have the space to experiment without worrying about inaccuracy in their attendance, transparency in their results, and flexibility for high mental health is important.

Leveraging technology for the benefit of employees and their company is how one can compete better. An online attendance software system is crucial for you if you are facing loss due to the old ways of attendance management.