The Chronologic guide to time and attendance · The employee attendance data it collects is then downloaded ... system provider. Unlike many Windows-based on-premise ... The Chronologic

Hints, tips and advice on finding a solution that works for your organisation.

The Chronologic guideto time and attendance

www.chronologic.co.uk

The Chronologic guide to time and attendance

Since the dawn of modern manufacturing there’s been a requirement to keep a check on who’s on-site and who’s not to facilitate the timely delivery of products, and more recently services.

Keeping accurate track of hours also means that employees are paid fairly for the work they do and helps organisations comply with employment regulations.

If your organisation hasn’t had a formal time and attendance system before, or your old system can’t cope, we hope you’ll find the information in this briefing useful in finding a new workforce management or time and attendance solution.

Introduction

Workforce ManagementCall 01761 410015 | Email [email protected] | www.chronologic.co.uk

Contents03 Ashorthistoryofclockingin04 Choosingatimeand

attendancesystem Stand-aloneclocks On-premisesoftware Cloud-basedsoftware07 Differentwaystoclockinfor

softwaresystems08 Whattoconsiderwhen

choosingatimeandattendancesystem

13 Beprepared13 Getintouch

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StandardtimewasonlyadoptedintheUKfrom1862toenabletrainstorunonthesametimetable.

FACT


TheindustrialrevolutionintheUKintroducedtheworkingweek;employeeswererequiredtoturnup

on-timeandworkasetnumberofhours.Theconceptofworkingpre-ordainedtimeswasn’tsomethingthepreviouslyartisanoragriculturalworkforcewasusedto.

The end of Saint MondayNewlyemergingmanufacturingprocessescouldn’taccommodateworkersturninguplateortakingtimeoffwhentheyfeltlikeit.

ThepotterymanufacturerJosiahWedgwoodwasthefirstrecordedemployertointroducestrictrulesfor‘clockingin’.In1790allbut5ofthe297Wedgwoodemployeeshadveryspecificskillsandroleswithintheproductionprocess.Ifthespoutmakersdidn’tturnupforwork,teapotmanufacturewouldgrindtoahalt!

Watching the clockSomewaterdrivenmillshadatwo-facedclock,onesidetoldtherealtime,theotherdrivenbywaterpowerslowedandspeededupwiththeflowofthewaterdrivingthemachinery.Thesecondclockfaceshowedworkerstheextratimethey’dhavetoworktomakeupanyshortfallinproduction.

A short history of clocking in


SaintMondaywasawell-knownandwidespreadunofficialdayoffforcraftworkerstorecoverfromtheweekend–soundfamiliar?

Wedgwood’s clocking in system: Everydayemployeesweregiventwocardswiththeirnameon.Inthemorning,onecardwashandedinonentryandtheotheronexit.Atallywasmade,discrepanciesnoted,andtransgressorsadmonishedorfined!

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WedgwoodMuseumwww.wedgwoodmuseum.org.uk

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TIPS

Choosing a time andattendance system


Basicstand-alonemechanicalclockinginmachinesandtimecardsarestillbeingusedbycountlessorganisations

acrosstheUK.It’sasimplewaytomanagetherecordingofattendanceandbreaks.Customers with more sophisticated requirements can now choose from real time cloud-based time and attendance SaaS services or tailored enterprise-level workforce management solutions.

Employeescanclockinusinganincreasingrangeofdevicesincludingbiometric,RFIDswipecardandproximityfobterminals,web,tabletandsmartphone.

Mechanical and other stand-alone time clocksMechanicaltimeclockshavebeenaroundforover125years.Todayyoucangetstraightforwardtimecardclockswhichstamptimesanddatesonacard.Theemployeeattendancedataitcollectsisthendownloadedmanuallyandcollatedbyfinance/payroll.

Someofourcustomershavefoundthisworkswellwhentheworkforceissmall,andshiftsandpayratesaresimple.As organisations grow it gets harder to manage and takes longer each time to create accurate payroll-ready reports.

Morebasicclockscanonlymanageasetnumberofclockingsperemployeeperdayandmayonlybeabletohandleafinitenumberofemployeesperterminal.

Moresophisticatedstand-aloneclockinginterminalsincludeswipecard,proximityfobandbiometric.Thesecomewithbasicsoftwarewhichprocessestheclockingindata.

Ifthere’snoTCP/IPconnectionavailableon-site(TCP/IPishowthedataissentfromterminalsviaanetworktowhereveritneedstogo),clockingdatastillhastobedownloadedfromeachclockwithaUSBstick.Ifmorethanoneclockisusedthedatafromeachhastobeaggregatedmanuallyforpayroll.

For small organisations who aren’t likely to expand, (at least for a while), with simple shift or clocking in patterns, then for a one-off cost a stand-alone clock may still be a robust option.

Some clocks only come with 12 months support and warranty.

Some may require software upgrades.

You’ll need to order swipe cards or timecards from time-to-time.

Asinanypurchasingdecision‘Yougetwhatyoupayfor.”Itpaystobeclearfromtheoutsetwhatyourorganisationneedsfromatimeandattendanceorworkforcemanagementsolution.

InNewYorkin1890WilliamLeGrandBundystartedmanufacturingthefirstmechanicaltimeclocks.

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Choosing a time and attendance system


On-premise workforce management systems grew out of the need for larger companies in particular to streamline the collection of accurate real time, time and attendance data. Thesesolutionsgenerallyaccommodatelargernumbersofemployeesclockinginatanumberofsites.Typicallythey’llalsohavecomplexshiftpatternsandpayrates.Dataandreportsareavailableinrealtime.

Mostvendorswillbeabletocustomisethesoftwaretomeetindividualcustomers’requirements.

It became clear that the data generated by attendance could also be used to feed into and inform other business processes, out of which workforce management solutions have grown.SomesystemsnowincorporateafullsuiteofHRmodulessuchasrecruitmentandtalentmanagement,butthiscomesataprice.

Clockinginmethodscanincludebiometricfingerprint,handandfacescanningterminalsandRFIDswipecardandproximityfobterminals.

An entry-level system like our Focus software suite starts at around £1,500 - £2,000.Upgradesneedtobeallowed-forintermsofITcostandresourcing.Askthevendorwhopaysforsoftwareupgradesandanybugfixesthatmightberequired.

On-premisesystemsaregenerallyhostedonacustomer’sstaticorcloudserverandmanagedbyin-houseITteams.Somevendorsoffercloudmanagedservicesmanagingthesoftwareonyourbehalfandchargingamonthlymanagementfee.

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On-premise workforcemanagement systems

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Choosing a time and attendance system


managementsystemwithsixdifferentoptions.

SomeofourcleaningandFMcustomersusephoneclockingasit’saflexiblewayforemployeesondispersedsitestoclockinandoutatdifferenttimes.InamanufacturingenvironmentRFIDswipecardclockingmaybemoreappropriate.

Cloud-basedsystemsaregenerallypaidforonamonthlyongoingbasiseitherperclockingemployeeorgroupofemployees.

WithouruAttendcloud-basedsolutionyoucanusebiometricandproximityclockinginterminals,web,phone,tabletsandafreesmartphoneclockingoption.Alldataisaggregatedintooneaccount.

Cloud-basedserviceproviderscreateandmanage‘virtualsoftware’suchastimeandattendancesystemswhichmaybehostedontheirowncloudserversorbythirdpartiessuchasAmazonWebServices(AWS).Servicesareaccessedviaawebbrowser,theyaren’tinstalledonyourPC.

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Cloud-based SaaS systemsCloud-based or SaaS (software as a service systems) are a more recent addition to the time and attendance market. These services offer some of the core features and functionality of the on-premise enterprise workforce management systems at a fraction of the cost.

Cloud-basedsystemsmeanthere’snosoftwaretoinstallon-siteorupgradestokeepontopof;it’salldoneforyou.Thedataissecurelyhostedoncloudserversbythesystemprovider.

UnlikemanyWindows-basedon-premisesystems,cloudsoftwareisweb-basedsoservicescanbeaccessedonaPC,Mac,laptop,tablet,smartphone,etc.Information is available in real time to whoever requires access wherever they are.

Cloud-basedtimeandattendancesystemsareofferedasis;youwon’tbeabletotailorpayrollandotherreports.Youcanexportdatatoaspreadsheetorothersoftwaresystemsfordeeperanalysisifrequired.

Cloud-based services offer a range of clocking optionsfrompurelywebclockingintootherslikeouruAttendemployee

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Biometric clocking inBiometric clocking uses each person’s unique physical attributes to create an algorithm which is compared to each face or fingerprint when it’s subsequently scanned at clocking in.

Fingerprint scanningFingerprintterminalsarethemostcommonformofbiometricterminal.Atinductionanemployees’fingerprintisscannedandauniquecodecreatedrelatedtotheirfingerprintwhichisstoredonthesystem.Whenthefingerprintisscannedatclockingintheprintiscomparedtothestoredcode.Thefingerprintsthemselvesaren’tstored.

Facial recognitionThereareanumberofdifferentwaysinwhichfacescanningalgorithmsarecalculated.Mostcommonlythekeypointsofaperson’sfacearetriangulatedandturnedintoauniquecode.Whenthefaceisscannedatclockinginit’scomparedtothestoredalgorithmforthatindividual.

Hand scanningA3Dscanofthecontoursofahandismade;theterminaldoesn’ttakeorstorepalmprintsorfingerprints.Handscannersareoftenusedinmanualtradeswherefingerprintsmaybeworn,orwherepeopleareinandaroundwaterordirtalotoftheday.

Different ways to clock infor software systems


RFID proximity terminalsRadiofrequencyidentification(RFID)hasbeenaroundforawhileandisextensivelyusedfortrackingandidentificationinthesupplychain.ManufacturerscreateRFIDtagsforconsignmentswhicharethen‘read’andloggedontheirjourneytoaretailerorotherdestination.

You’llhavecomeacrossRFIDifyou’vehadapetmicrochipped;thevetusesapassivereadertoaccesstheinformationonthechip.

InthecaseofRFIDclockinginterminalstheswipecardsorfobscarrytheemployee’sinformationwhichtheclockinginterminalpicksup.Theclockingterminalisanactivereaderbecauseithasapowersourceandcanreadthedataonacardorfobwhenthey’rewithinacertainproximity.

RFIDterminalscanbecombinedwithdooraccesscontrolsystemsandhigherfrequencysystemsusedtocontrolon-sitevehicleaccess.

Oneofthebiggestbiometrictimeandattendancedeploymentswe’veseenrecentlyistheIndianGovernment’sin-housedevelopedsystem.l Over109,000registeredemployees.l 1,000fingerprintbiometricclockingterminals.l 498governmentorganisations.l Realtimewebviewofwho’sclockedin.attendance.gov.in

FACT

TIPBiometric clocking in is one of the most effective ways to deter time theft such as ‘buddy clocking’ where one employee clocks in for another.

TIPRFID systems will require you to source new cards and fobs from time to time and someone will need to manage the sourcing and administration of replacements.

Considerl For real time clocking in data, the terminals

have to be able to connect to a central system through a wired TCP/IP connection or via WiFi. Some terminals store data if a connection goes down, others don’t.

l Most terminals will need a power source to operate.

l All-weather protective hoods can be installed, for example for hand scanners located outside.

< MNseriesofbiometricfacescanningterminals.WiredorWiFi.From£299

< BN6000seriesofbiometricfingerprintterminals.WiredorWiFi.From£169

< CB6000seriesofproximityterminals,swipecardorfob.WiredorWiFi.From£119

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uAttend employee management system biometric clocking in terminals

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http://www.attendance.gov.in

The Chronologic guide to time and attendance page08

How much do you want to spend on a time and attendance system?Thecostofaone-offstand-aloneclockpurchasemaylookgoodvalue,butwhatdoesyourorganisationreallyneed?Couldatimeandattendanceorworkforcemanagementsystemdelivergreaterbenefits?

ManyvendorstalkaboutROI(returnoninvestment)especiallyifanorganisationisconsideringabigenterprise-levelsystemimplementation.

Ultimately how much and where you’ll save will depend on your organisation, its priorities and the system you choose.Withanewtimeandattendancesystem:

l You’llsaveonfinance/payrollresourcepreviouslyrequiredtoadministratepayrolldata.

l You’llreduce‘humanerror’withamoreefficientdatainputsystem.

l You’llsavewithaccurateclocking,’lost’minutesadduptoabigdrainonthewagebill.

l You’llsavemoneyeliminating‘timetheft’suchasbuddyclocking.

What to consider when choosing a time and attendance system


l You’llsaveonthepotentialcostofabsenceandsicknessbybeingabletoactfasterwithrealtimeinformationtominimiseanyimpactonproductionorservicedelivery.

l You’llsaveifhoursworkedandpayrollcostsforeachdepartmentaremorecontrollable.

l You’llachieveefficienciesinmanyareaswithaccesstobetterbusinessreportingandinsight.

On the ground it’s also more than just about money.Oftensystemuserstellusit’saweightofftheirshoulderstohaveanefficientandaccuratenewsystemthatdoesalotofthedonkeyworkforthemandinhalfthetime.

TIPON-SITE NEEDS ASSESSMENT: We can help you to identify potential savings. You’ll find this particularly useful if you have to put together a business case for a new system.

“ItwaslovelynottohaveallthereamsofpapertogothroughasIwouldhavehadbefore.IjustclickedandtherewasalltheinformationIneeded.”

There’satimeandattendancesolutionforeverysizeandshapeoforganisation.You,ortheteaminvolvedinsourcingasolutionmayneedtoconsidersome,orallofthefollowingbeforecomingtoafinaldecisiononavendor.

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How many employees do you have clocking in? How many locations? Are you likely to be adding more sites and locations over the next few years?Amanualorstand-aloneclockinginterminalmaybefineatthemoment,buteighteenmonthsdownthelinewillitbeabletocope?Investinginasmartersystemnow,whichcandeliverbetterandmoreaccurateinformation,couldmakeabiggerpositiveimpactonyourorganisationintermsofcostsavingsandstreamliningprocesses.

Is your business seasonal or do you have busy and quiet periods?Somecloudservicetimeandattendanceprovidersallowyoutoturnyouraccountonandoff,orscaleupordowndependingonstaffinglevels.It’sworthconsideringsoyouaren’tpayingforaserviceyouaren’tusingorusingasmuch.

We’vegotcustomersinconstructionforexamplewhobringinresourceasnewsitescomeon-stream,pricingplansareadjustedtoaccommodatethefluctuatingnumbersofemployeesandcontractorsastheprojectsprogress.

What to consider when choosing a time and attendance system for your organisation


Do you have a problem with time fraud or time theft?Someorganisationshaveissueswithtimefraudsuchas‘buddyclocking’,whereoneemployeeclocksinforanother.We’veevencomeacrossemployeestryingtofoolfacescanningterminalswithphotos.BiometricsystemswhichencodeuniquehumancharacteristicscombinedwithPINclockingareagoodwaytostopbuddyclocking.

Timetheft,asit’scalled,doesn’thavetobedeliberate,itcanjustbeacasualroundingupordownhereandthereor‘guesstimates’ofarrivalandleavingtimes.

Itmakesitfairerforallemployeeswhenanorganisationhasaccurateattendancerecording.Resentmentcanbuildupwhenemployeeswhodoturnuptoworkontimeandworktheirhoursseeothersgettingawaywithbeinglateorleavingearly.

“Wehaveknownforalongtimethatitishumannatureto‘forget’the5or10minutesthattheywerelatearrivinginthemorning,andthenclaimovertimeattheendofthedayforgettingthelatestart.”Equipmentmanufacturer

TIPWhen comparing time and attendance systems find out how scalable they are and what the likely cost of upgrades, servicing and support will be.

Apersonworkingfull-timespendsatleast104,850minutesatworkayear.If10minutesare‘lost’eachdayitaddsuptoaround2,330minutesor39hoursperemployeeayear–that’snearly5workingdayslostintranslation!

FACT

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Does your organisation have issues with employee punctuality?We’vecomeacrossorganisationswho’vesaidthateventhe‘threat’ofinstallinganewtimeandattendancesystemhasimprovedpunctuality.Somecustomershaveprominentdisplayscreenswhichshowliveclockingininformation.

Does your organisation operate multiple shift patterns and pay rates?Doesyourorganisationoperatedays,nights,triples,fourdayson,fourdaysofforcontinentalshifts?Ifyoudon’talreadyhavethissortofinformationtohandyou’llneedtofindoutassomesystemswon’tbeabletocopewithcomplexshiftpatterns.

Thesamegoesforschedulingandrotamanagement–doyouneedasystemthatcanhelpmanagersandsupervisorsmakesurethatresourcesareintherightplaceattherighttimeandbeabletotrackwhatit’scosting?



“Wecancreateashiftexactlyhowweneedittobewithoutanycompromise.Allthedifferentshiftratesarehandledeasily.Eventhefactthatwehavedifferentratesfordifferentshiftsandshiftsareswappedallthetime,theovertimecalculationscomeoutcorrectlyeverytime.”Foodmanufacturer

82%ofourcustomerssaidthattheyexperiencedimprovedpunctualityafterinstallinganewtimeandattendancesolution.

FACT

Does your organisation already have people on flexible working? Are you considering introducing flexitime as an option for employees?AsofJune2014everyUKemployeehasthestatutoryrighttorequestflexibleworkingafter26weeksemploymentservice.Employerscanrefuseiftheycanprovethatanemployeeonflexitimewouldnegativelyimpactontheirbusiness.

InarecentCIPDreport(theprofessionalbodyforHRandpeopledevelopment),onlyoneintenorganisations(mostlySMEs)saidtheydidn’tofferanyformofflexibleworkingoptions.

With flexibility comes complexity for those managing staff, and for payroll calculations. Moresophisticatedtimeandattendancesystemscaneasilyaccommodatedifferentworkingpatternsandpayrates.Again,itpaystobeclearbeforeyoustartlookingforatimeandattendancesystemhowmany,andwhatthesepatternsare.This’llenableyoutoidentifythesolutionthatcanmeetyourneedsnowandinthefuture.

Flexi factsThe EEF, a manufacturing and engineering industry organisation survey found:

l Three in ten of their members were operating part-time working for production employees.

l Over a quarter were operating individualised hours or shifts.

l One in five offered compressed hours.

l Banked hours, career breaks and job sharing were also offered.

EEF – www.eef.org.uk

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NOTE: The UK government defines an SME as a business with 0 – 250 employees (although <10 employees is classed as a micro business). 14,424,000 people were employed in SMEs in 2013.

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Absence and holiday management Absence managementUnauthorisedabsenceincludessickness,‘throwingasickie’andemployeesoffduetostressorcaringresponsibilities.

Absence reporting and absence management are becoming increasingly important to many organisations.Absencenotonlyimpactsonproductivitybutcouldreflectthelevelofemployeeengagementwithinabusiness,thisinturncanaffecttheserviceyouoffercustomers.

AgoodworkforcemanagementsystemcandoBradfordFactoranalysisandreportingforyou.Thedatatheanalysisprovidesaboutabsenceshouldideallybeusedwithother



“Thenewsystemhassavedvaluabletimeforusers.Reportscanbegeneratedquicklyregardingabsences,whichtheoldsystemcouldnothandle.TheProductionManagerorForemancanbeinformedinstantlyofemployeeabsences.”

NOTE: Bradford Factor analysis is based on research undertaken in the 1980s. It tracks short-term absence which has been identified as having the most negative impact on an organisation.

ACIPDreportestimatedthatanaverageof7.4daysayearwerelosttosicknessorabsencecostingemployersanaverageof£609peremployeeayear.CIPD – www.cipd.co.uk

FACT

informationwhendealingwithindividualcasesofabsenteeism.

Holiday managementGoodworkforcemanagementsystemswillhavecalendaroptionswheremanagersandsupervisorsareabletoviewandmanageindividualanddepartmentholidaysandabsenceinrealtimetofacilitatebetterresourcemanagement.Theycanauthoriseholidayrequestsandabsencessuchasdoctor’sappointmentsonlineaswell.

Someworkforcemanagementsolutionsenableemployeestoviewtheirtimesheetsandholidays,andrequestholidaysandplannedabsenceonline.Timesheetsandotherinformationcanbeemailedtoemployeesaswell.

The Fit for Work programmeThe UK government recently introduced the Fit for Work programme to encourage employees back to work in a timely way and at less cost to the employer, especially SMEs.

If an employee is off work due to illness for four consecutive weeks there is an option to refer them to Fit for Work for assessment. Working with an independent case manager the employee and employer jointly develop and implement a Return to Work Plan.

www.fitforwork.org

7.47.4 DAYS

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Installation, post-sales service and supportl Howmuchsupportisyourorganisation

likelytoneedduringimplementation?l Willongoingpost-salessupportbe

required?l Whatsortoftrainingwillsystemusers

need?Ifyouhaveanumberofusersyoumayneedmoresupportandtraining,askabouttheongoinglevelandcostofsupportandtraining.

Dashboards and reportingWhatkindofdataandreportingdoesyourorganisationcurrentlyneed?Simplepayrollreports,timesheetediting,exceptionsmanagement,admincapability?

Wouldyourorganisationbenefitfromgathering,analysingandreportingnotjustpayrolldata,butsickness,holidayandotherabsenceinformation?Attendance data can tell you a lot about workforce motivation and well-being.

Wouldyourorganisationliketomanageshiftsandrotasmoreefficiently?Orbeabletorespondtoabsenceinrealtimebeforethere’sanimpactonproductionorservicedelivery?

Do you need somewhere to store and view HR related information?DifferentsystemsofferdifferentlevelsofHRmanagementfunctionality,startingfromrecordingpersonalcontactdetails,licencerenewals,traininginformationandanniversariestofull-scaleemployeecareermanagementsystems.ManytimeandattendancesystemscaninterfacewithmorespecialistHRsystemsifrequired.

OurFocussoftwareofferssecureaccesstoemployeecontactdetails,training,licenceremindersandotherinformation.

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And finally – be prepared

ChronologicWe’reChronologicandweliketalkingtocustomersandfindingoutwhattheyneedfromatimeandattendanceorworkforcemanagementsolution.Ifwecan’tdeliverexactlywhatyouwantwe’lladviseonsomeonewhocan–butwe’reconfidentwe’llfindtherightsolutionforthemajorityofcustomers.We’veoverfifteenyears’experiencedeliveringandsupportingpractical,affordabletimeandattendanceandworkforcemanagementsolutions–justaskourcustomers!Get in touch and tell us what you need from a new workforce management or time and attendance system.

Planning and preparationDependingontheapproachyouchoose,youmightneedtobringpeopletogethertosetdownhowprocessescurrentlyworkinyourorganisationandhowthey’lltranslatetoanewsystem.Ifthishasn’tbeendonebeforeitmaytaketime,butwillbewellworthit.Processesmayneedtochange,butyou’llendupwithafit-for-purposesystemthatworksforyourorganisation.

Selling-in the new systemYoumayneedtospendtimeselling-inanewtimeandattendanceorworkforcemanagementsystemtopotentialusersincludingmanagersandsupervisors(wecanhelpwiththis). l They’llwanttoseehoweasyitistogettheinformationtheyneed. l Somesystemsenableautomatedreportstobesentoutandtailoredloginssetuptogive

themwhattheywantwithlittleeffortrequiredontheirpart. l Willtheyneedtraining?It’sworthwhilegettingemployeeson-boardtoo.Ifyou’veneverhadaformaltimeandattendancesystemtheremaybesomeinitialmistrust.Ifyou’reintroducingabiometricclockinginsystemsuchasfingerprintscanning,reassureemployeesthattheirpersonalprivacyisn’tbreachedandtherearen’tanysecurityissues.Fingerprintsaren’tstoredonthesystem.Whatever solution you choose, your organisation and the people who work in it will benefit from a more accurate time and attendance or workforce management solution. l Accurateattendancedatasavestimeandmoneyonpayrollpreparation. l Automatingattendancereportingforpayrollmeansnooverpayments-savingmoney. l Nounderpaymentsmeanfairpayforafairday’sworkwhichmakesforhappier

employees. l ImprovedinsightandbusinessreportingaddsvaluetoHR,operationsandotherbusiness

functions. l Employeescouldbeallowedtotakemoreresponsibilityformanagingtheirowntime. l Encourageflexitimeorflexibleworkingforbetteremployeework-lifebalance.Agood

systemmakeshourseasytomanage.

“Staffclockinginandoutwasrelativelystraightforwardapartfromthosepeoplewhothoughttheyweretooimportanttoclockinandout.Thatmetabitofresistance.”

TIP“I think you must be 100% clear how you want to set up daily and weekly rules and schedules because changing it all later causes confusion. There were HR implications as well and I would make sure staff contracts have been reviewed before the system is set up.” Distribution customer

64%ofourcustomerssaidtheyhadfewerargumentsoverpaywithanewtimeandattendancesystem.

FACT

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The Chronologic guide to time and attendance · The employee attendance data it collects is then downloaded ... system provider. Unlike many Windows-based on-premise ... The Chronologic