The Future of Time & Attendance Part 3 – Using Time and Attendance Data Beyond Payroll
Most organizations implement time and attendance systems to address a common business pain. It may be to control labor costs. It may be to improve payroll accuracy and efficiency. Whatever the business driver that leads to this investment, the data collected is primarily used for paying employees and tracking their work time.
However there is a lot more value in this data than just punch-in/punch-out information. Today, many best-in-class companies are tracking and analyzing the data between the punches, and using this valuable information to reduce employee turnover, improve business productivity and help transform business processes.
One example of this is in hiring and talent acquisition. Time and attendance information says a lot about a worker. Are they habitually late? Do they leave early? Are often calling in sick? This information can be appended to an employee’s profile and used as a model for hiring purposes. By reviewing an existing employee’s hiring assessment and combining that with their time and attendance history (and potentially their tendency to resign), a hiring manager can gain greater insight into employees they would likely want to avoid. Conversely, a positive time and attendance record combined with a particular employee’s profile and positive work history can give insight to the ideal worker a hiring manager would want to target and acquire.
Another area where time and attendance information can be leveraged beyond payroll is in tracking labor productivity – essentially tracking what activity a worker does while on-the-clock. Data collection solutions can provide visibility into jobs that were worked on, tasks that were executed, work-in-progress, units produced/sold, product quality and more.
Collecting and tracking employee labor data allows companies to accurately account for labor expenses and reconcile all paid time by tracking all employee activity. This can also be used to measure employee output against predefined standards for efficiency. The resulting information empowers companies to reduce labor expense by identifying & trimming nonproductive time and ultimately grow profit margin by understanding & controlling labor expense.