Understanding the ROI of Implementing a Biometric Attendance Machine

Today, many businesses have understood the profitability of deploying a biometric system for employee time and attendance management. They have already replaced their outdated workforce management solutions, and are reaping great benefits from their biometric systems in terms of employee productivity, payroll efficiency and accountability. However, there are some companies that remain sceptical about any positive return on investment after the deployment of a biometric system. Here’s how biometric technology can help businesses achieve positive ROI:

Biometric technology reduces time theft

Time theft is a real problem for businesses of all sizes, and it costs employers $400 billion annually in lost productivity. Biometric technology is one of the best ways to prevent "buddy punching," which happens when a co-worker punches in or out for another employee who isn’t actually present. It has been estimated that more than 75% of employers see payroll losses due to time theft. Biometric time attendance systems can not easily be tricked, making time theft by employees nearly impossible. You can easily prevent unscheduled breaks, determine leave taken by employees and calculate payroll more accurately.

Biometric technology increases payroll accountability

The average payroll error rate is 1.2 percent. Automating your time and attendance process ensures accuracy of payroll calculation. An accurate, auditable biometric time attendance tracking system can reduce the potential costs of fines and legal fees associated with being in compliance of employee regulation. It is impossible for payroll department to accurately track early arrivals or late departures of employees. In other words, unless there is an automated mechanism like biometric systems in place, HR or payroll staff cannot report time theft. Companies are often fined for incorrect payroll calculation, submitting deposits late and neglecting on-time payroll. A biometric time attendance system eliminates all these possibilities, thus increasing payroll accountability.

Biometric technology keeps companies focused on their goals

When employers deploy biometric systems for time keeping and connect it with payroll software, then they get to focus on the core goals of the company rather than on labour intensive things like employee attendance and payroll. They will not have to chase down managers for attendance authentication or work with payroll department for calculation errors. They will save company costs by cutting unnecessary errors and losses. A biometric system enables employees and managers work harmoniously without possible differences.

Deploying a biometric time attendance machine will lead to a positive return on investment as it helps with compliance, reduces time theft, and minimizes payroll errors. These are the direct benefits of biometric technology. Indirect benefits of biometric system include increased employee productivity, improved payroll reporting and improved audit capabilities. So, eliminate the heavy costs of manual data recording and workforce management and automate these processes with a biometric attendance machines.

Mr. Rawlson is presently working as a senior advisor at a leading company providing Epss and biometric authentication system. He is an experienced communications professional, management consultant and trade journalist.