Time and Attendance 101

I. What is Time & Attendance Tracking?

Time and work are inseparable. The concept of time is such an integral component of work. How long will a job take? Is it worth my time? In today’s workplace, tracking accurate time—and its close partner, attendance—is as crucial (and interconnected) as payroll.   

To accurately track time and attendance, most companies rely on time and attendance software. A critical branch of HR technology, time tracking management software facilitates and collects data on numerous aspects of an employee’s daily routine that are crucial for a business to understand. Some examples include:

• Tracking when employees start and stop work
• Collecting employees’ working hours, late arrivals, and early departures
• Monitoring breaks and absenteeism

Time and attendance systems allow employees to clock in and out electronically via time clocks, computers, and mobile devices. When an employee makes a punch, the data instantly transfers throughout the HR software and seamlessly imports into the payroll solution.

Time and attendance software allows for a lot more than just clocking in and out, such as: 

• Accurately manage paid time off (PTO)
• Create efficient employee schedules
• Monitor remote workers via geofencing

A time and attendance software solution can improve both efficiency and accuracy in time reporting and management. By improving these HR functions and collecting all of the relevant critical data, time and attendance technology helps businesses:

• Analyze the data that is most important through customizable, detailed labor reports
• Control labor costs by eliminating human error, ensuring accurate data, and reducing over-payments 

• Ensure compliance with labor regulations, including overtime and various forms of employee leave
• Enable employees to handle many of their time and attendance tasks and questions on their own through employee self-service

II. Why is Time & Attendance an Important Part of HR Software?

Most small to medium-sized businesses are in need of HR help. Over the past few years, more and more companies are discovering the benefits of outsourcing HR functions—like payroll, recruiting, and time and attendance.

Headlined by saving time and money, there are countless reasons for outsourcing HR functions like time and attendance tracking, including:

• Increased efficiency (24%)
• Increasing expertise (18%)
• More flexibility (16%)
• More time to perform other tasks (15%)

Time and attendance management is essential for the modern workplace. Once the norm, analog time clocks and manual record-keeping are no longer sufficient. They require extra work to manage and are susceptible to errors—making things hard on HR and management, while also hindering the employee experience.

Modern timekeeping and attendance tracking tools provide up-to-the-minute recordkeeping automatically. This kind of human resources software allows companies to track all workers through all different types of work with a single, streamlined solution. This includes:

• Scheduling and overtime
• PTO and leave
• Employee benefits and compliance

Time and attendance software must adapt to the overall needs of your Human Resource Management process. Track and compare employee performance over time. Make benefits easily accessible—from parental leave to vacation time. 

An HR-connected time and attendance solution is every business’ best option when combined with other HR processes. With true single-source technology, all time and attendance information is automatically connected with all connected HR technology solutions, most notably payroll.

With HR technology, it is more than just implementing new technology—seamless integration is essential. Why does HR integration matter? Simply, it saves time and money while making jobs easier and more manageable. For time and attendance software, HR software integration means:

• Improved accuracy
• Reduced administrative needs, and 
• Better employee engagement

III. Essential Features of Employee Attendance Tracking Software

Accurate timekeeping and attendance tracking can be a major game changer for Human Resources teams. But some time and attendance software options are capable of only a limited range of tasks related to employee timekeeping and attendance tracking.

So, how do you make the right choice when it comes to choosing a time and attendance software? Here are some of the top features to expect from a high-quality time and attendance software like Netchex.

Cloud technology

Cloud-based technology always keeps records secure and accessible, whenever and wherever managers and employees might need access.

Lots of options

A time and attendance software solution should adapt as your business’ needs change. Options such as types of timekeeping clocks, mobile accessibility, and geo-fencing allow your company to remain flexible.

Automated taxes

Routine tax calculations and withholdings related to employee time and attendance tracking shouldn’t be a burden. Ensure payroll accuracy and compliance with taxes by automating the process.

Digital timesheets

Digital timesheets allow for easier reporting, assessments, and approval with less time spent on corrections and adjustments.

Scheduling capabilities

Managing employee schedules from the same software as time and attendance just makes sense. Drag and drop scheduling, easy edits and requests, overtime monitoring, and conflict alerts keep your staff on the same page.

Absence and leave management

Enable employees to request time off and check PTO with the same portal where they clock in/out, see their schedule, and check accumulated hours.

In-depth reporting

Whatever metrics you want to prioritize, human resources software provides the relevant data and reporting. Track each individual employee’s performance, as well as trends for each department or location with the right HR software solution.

Ease of use

Quality HR technology should be user-friendly and practical. A few different aspects of time and attendance software impact its ease of use, including:

• Biometrics
• Employee self-service
• Communication capabilities and
• Employee experience

IV. What are the Benefits of Time & Attendance Software?

Time and attendance software provides many benefits for your company and everyday users. Manage related tasks with HR software, and save time and money while improving accuracy, productivity, and engagement.

Take care of your company’s time and attendance needs while enjoying the following benefits:

Saving time and money

With separate systems, it takes time to configure employee payment—scheduled hours vs. worked hours, overtime calculations, bonuses and tips, benefits deductions, etc. A combined time and attendance system saves significant administrative time and prevents overpaying or underpaying across the board.

Additionally, time and attendance software allows you to implement policies that will automatically take effect. User-friendly software also simplifies routine processes, allowing your workers more time to focus on more important tasks.

More than just fast and user-friendly, web-based time clocks improve accuracy and efficiency. Track the hours employees are actually working, not their daily breakroom routines. Remote teams can use the same timekeeping system from home.

Accuracy

You can subdivide a single employee’s hours when they perform different types of work at different rates of pay. You can also easily track lunch and break time with a highly accurate level of detail.

Compliance

Federal, state, and local standards may impact your overtime policy and maximum hours, and software makes it easier to comply with those compliance standards. Get clear reporting for external audits and get automated alerts for conflicts as they arise, not days or weeks later.

Improved workforce management and employee engagement

Track time and attendance with the same system that manages payroll, benefits, performance, and more. Uniting all HR functionalities, including employee time and attendance tracking software, under one HR system helps your company run smoother with extra flexibility and better workforce management.

Empower your employees with added transparency and easily accessible records. Give employees access to resolve simple problems, check their accrued PTO, and request time off. Employee self-service relieves supervisors and HR staff of some of their more tedious tasks.

Increased productivity

Automatically collect the right data for employee reviews, including tardiness and time management. Reward the employees who spend their time more efficiently, comparing precise work hours to productivity. 

With detailed timekeeping, you can get a better idea of employee efficiency. Kickstart a performance-based workplace culture by showing employees that you care how they spend their time. Use new time and attendance software data to set goals for future performance.

V. How to Better Manage Absenteeism, Overtime, and Leave

There is so much more to time and attendance than just clock punching and scheduling. Important time-related issues like overtime, absenteeism and tardiness are recurring problems in most workplaces—even in a remote work world.

Don’t settle for the bare minimum when addressing these issues. Use employee time and attendance tracking software to:

• Create enforceable policies
• Improve performance, and
• Reduce cost across your company

Managing tardiness and absenteeism

Some absences are beyond an employee’s control. Other employees simply choose to skip work because they don’t value the job or expect minimal consequences. Clearly, each workplace needs a set of HR policies to respond fairly to both legitimate and illegitimate causes for tardiness and absence.

Late and absent employees affect the morale and efficiency of the whole company. When it only happens once or twice, it’s tempting to ignore absenteeism. Unfortunately, you need to develop a consistent policy to prevent these negative side effects from piling up:

• Resentment from other employees
• Lower productivity and morale
• Increased expenses
• Disciplinary action

On a larger scale, the missed hours have a potentially huge financial impact. Just think about how much can your company save by investing in accurate and effective time and attendance tracking software:

Tardiness

Absenteeism

There are steps you can take to address and reduce tardiness and absenteeism with better time and attendance policies + HR technology, including:

• Regularly reviewing time off policies
• Ensuring accurate timekeeping and scheduling
• Addressing repeat offenders one-on-one
• Developing new adaptable policies
• Update policy in employee handbook
• Reward those who follow policy

Managing overtime

Managing overtime is another crucial time and attendance-related topic for Human Resources and managers to plan for and address. Excessive overtime leads to overspending and an overworked staff—on top of various employment laws and labor regulations to consider.

Overtime issues are often the result of problems elsewhere in the company. The right human resources software can streamline changes to your scheduling and timekeeping policies, automatically tracking overtime pay for each week. 

Supervisors often swiftly address unexpected overtime problems by simply cutting hours. Another knee-jerk way to reduce overspending is to forbid employees from working overtime. That’s not managing overtime, it’s only creating more problems.

First, you may try reducing the need for overtime by identifying its root cause. Excessive overtime is likely symptomatic of staffing problems or efficiency roadblocks that need to be addressed.

Here’s how HR can better manage overtime:

Ensure overtime hours are productive

• Cross-train employees for added flexibility
• Incorporate data into performance reviews

Consider employee well-being

• Watch overtime employees for signs of burnout
• Spread out any additional workload as best as possible

Utilize the right time management software to make time management more efficient

• Create smart (but flexible) employee schedules

Follow overtime regulations and compensation

• Ensure you are keeping accurate records of overtime hours for compliance
• Clarify timekeeping and overtime policies

Developing better leave policies

PTO, FMLA, sick days, vacation days, time off, absenteeism… Leave management is a major component of HR management and employee scheduling, but it shouldn’t be an ongoing source of problems and conflict. With the right policies and HR software in place, leave management can better serve and support your entire workforce.

Leave requests must be managed fairly according to company policies and relevant laws. Human resources software avoids conflicts and overtime issues that would be easy to overlook with a simpler system. Effective leave management keeps shift schedules balanced by covering absences as early as possible. 

To keep work productivity high and employees happy with leave management, consider when creating and implementing employment leave policies: 

Follow relevant labor laws

• Always adhere to applicable federal, state, and local labor laws in your industry, including FMLA, FLSA, and employee classifications.

Research and evaluate options 

• You are legally obligated to provide leave for family emergencies, veteran caregivers, and jury duty.
• Extra holidays and paid parental leave allows your company to demonstrate a commitment to work-life balance. 

Incorporate time & attendance software

• Easy and accurate records will help managers and supervisors answer leave requests quickly and handle requests quickly and fairly.
• Some scheduling software even enables employees to request leave through their employee portal, as well as swap shifts and cover absences.
• Employee self-service portals should also allow for employees to check their hours and view PTO accrual.

Develop and communicate leave management policy

• Create a policy governing PTO, including how it’s accrued and how employees submit requests to use leave.
• Policy must be consistent for managing those leave requests, preventing favoritism and potential liability.
• Develop a workplace culture where employees are encouraged to take leave appropriately without fear of retaliation or resentment.

Remain flexible and adaptable with policy

• Stay open and receptive to changes, especially when implementing a new policy. Some employees will have special circumstances that you didn’t consider.
• Make relevant changes when you update the employee handbook, which should be revisited every few months.

Consider employee well-being

• Develop a leave management strategy that prevents burnout and supports employee mental health. Employees shouldn’t be forced to choose between the company and their families.
• If concerned about the cost of additional PTO and flexible leave policies for your current workforce, consider the alternative costs of recruiting and training new employees.

VI. What are the Benefits and Features of Employee Scheduling Software?

Scheduling software isn’t just about managing time; it’s also about saving time and improving your workplace culture. When the schedule creation process is streamlined, more transparent, and more collaborative, all of the employees feel more like valued stakeholders in the business.

Creating schedules manually is a time-consuming process with countless limitations. Specialized employee scheduling software makes the job easier thanks to a wide range of features and benefits.

Look for the following employing scheduling software features, and choose the overall software that’s best for your business:

• User-friendly schedule builder
• Employee self-service
• Payroll integration
• Accurate time tracking
• Intuitive employee profiles
• Shift bidding
• Shift swapping
• Customizable alerts
• Customer support and training

With the right features, employee scheduling software does more than save time for the managers tasked with making schedules. When it’s integrated with related technology, this solution has exciting potential to streamline the whole way your company does business.

• Save time and effort
• Ensure accurate staffing levels on all shifts
• Reduce scheduling errors and conflicts
• Empower employees to take control of their schedules
• Increase accessibility with mobile access
• Increase visibility and accountability
• Improve performance and ensure compliance
• Guarantee accurate payroll

The benefits of employee scheduling software go way beyond what’s possible with outdated alternatives. In addition to being easier to use, scheduling software can help keep your workforce engaged and motivated.

Empower employees by giving them tools and opportunities to influence their own schedules, swap shifts, and check their accumulated hours. Here’s how to get the most out of your time tracking and scheduling software to ensure your employees remain engaged.

• Train for flexibility
• Encourage employee input
• Make schedules accessible early
• Improve your response time
• Explore the added features of scheduling software
• Automate your shift alerts
• Provide mobile functionality

VII. How do I Create Better Employee Schedules with HR Technology?

Creating employee schedules is not an easy task. With so many business and personal factors influencing the decision-making process, it is easy to make mistakes and cause dissatisfaction.

Without the ease and functionality of employee scheduling software, you probably run into problems like unbalanced shifts or employees working unexpectedly into overtime. 

Here are a few tips to consider for crafting schedules that can help your business run more smoothly.

Know your staff

Focusing on just the number of workers needed per shift isn’t enough. Even when employees are trained for the same tasks, they have different skills, aptitudes, and preferences. Understanding which teams work best together and which shifts individuals prefer, your team will be happier and more efficient.

Communicate effectively with your whole team

Make schedules accessible to everyone as early as possible. That way there is more time for employees to make plans, request changes, and trade shifts. Communication goes both ways, so employees should be encouraged to notify managers about issues as soon as possible.

Evaluate your staffing levels and availability

Make an effort to learn about the typical availability of employees, including social activities, holidays, and family commitments. Staffing levels must remain appropriate and effective. You don’t want to have too many or too few employees on any particular shift.

Be mindful of scheduling roadblocks

Regardless of the personal preferences of employees, conflicts are bound to happen. Make sure that everyone has enough time off, hours are divided as fairly as possible, and take extra care about scheduling shifts around vacation/holidays.

Track PTO, sick days, vacations, and holidays

Accurate, easily accessible record keeping will help managers prepare for all kinds of absences. The easiest solution is employee scheduling software that integrates seamlessly with an accurate time and attendance tracking solution.

Strive to honor employee preferences and requests

As much as you can, try to accommodate employee preferences. As long as it’s not putting an unfair burden on others, flexible scheduling can make your company a more satisfying workplace. It’s easier to find replacements two weeks ahead, rather than the morning of a shift.

Give employees the ability to swap shifts

If employees can swap shifts among themselves, it saves time and effort for management. Additional freedom and flexibility improve employee satisfaction while still making sure that shifts are covered.

Be prepared to make changes

Changes will always be required. Employee scheduling software makes it easier to stay flexible. Streamline your operations by allowing employees to:

• Check PTO
• Request time off, and 
• Ask to swap shifts with colleagues after checking their schedules

Review schedules regularly

It’s easy to get complacent, especially when schedules settle into a routine from week to week, but you need to remain alert for changes. Holidays, onboarding new hires, and seasonal changes in the market may require adjustment.

VIII. Time & Attendance FAQs