Measuring the length of time someone worked to determine wages has a long history.

In ancient Egypt, though laborers were usually paid in bread, beer, and other consumables, the value of these items was eventually recorded as an equivalent weight of copper or silver. The Code of Hammurabi, a Babylonian law code of ancient Mesopotamia that dates back to about 1754 BC, reveals strict control over wages. For example, a potter’s work was valued at five grains of silver per day; a rope maker’s at four. 

Though our methods of determining wages owed to workers have changed drastically since antiquity, pay is still determined by things like time spent on the job and work accomplished. 

The Bundy Time Clock

Tracking employees’ time took a major leap from purely manual entries into mechanical record keeping when New York jeweler, Willard Bundy, invented what is often called the first time clock in 1988. When arriving or departing their place of work, employees inserted a heavy card into a slot, and the clock stamped it with the time. The same card was used for an entire pay period and then was given to someone who figured the hours and determined the wage earned.

Bundy_Clock,_Birmingham_City_Transport_-_better

 

Modern demands

Fast forward to the 21st century, and calculating employee pay is more complicated than simply tracking when employees come and go. First, people don’t always “come and go” to the same physical building. They may not “come and go” at all! Employees may work in the field, on the road, or from home.  And hours spent are not all that need tracked. Pay rates may fluctuate, even for an individual at a single company, depending on jobs performed or projects completed.

Manual calculations are error prone, and accuracy is critical not only to be fair, but also to stay compliant with regulations determining eligibility for benefits, health coverage, overtime, and taxes.

As revolutionary as the Bundy Clock was, timeclocks have evolved since its appearance until today, when you search for timekeeping equipment online, you’re bombarded with devices and systems that reflect current technology.

 

What do you need?

Sorting through options is easier when you know your requirements. Do your employees all work in the same physical space? Do you need a system that can be used remotely? Do you generate custom reports from the information gathered? Do your employees have complicated shifts and/or job pay rates? How do you want to connect timeclocks to payroll software?

What about hardware requirements? Is your company workspace a climate controlled office or is the work environment “hands-on” with dusty, greasy conditions? Do you need something heavy-duty that can withstand accidental physical stress? Do you want it to recognize badges, fingerprints, card swipes?

 

Exploring time management systems

You can choose time clocks that print information on physical time cards. Some of these clocks are automatic, some are digital, and some can perform functions beyond physical time recording such as automatically calculating time over pay period, job costing, and other applications. Digital, software, and web-based systems are additional options.

Mechanical time punch clock

These basic clocks that physically stamp the date and time on a card inserted into the clock can be right for small businesses. They are durable and precisely track the hours employees are on the job. Some keep a running record of hours worked, aiding the payroll personnel.

mechanical time clock

 

Digital clock

Updated versions of the punch clock, these may use a swipe card with a magnetic strip, electronic pin pad, or smart card to identify the employee to the clock. Time is electronically recorded and, with some models, data can be transferred to payroll software or services.

Some of these clocks collect additional information (tips, job type, etc.) when employees clock in or out. Self-service enabled clocks can provide a place for viewing time-log history, schedules, or receiving custom messages from management.

Where one company has several locations, these time clocks can be networked allowing an employee to clock in at one place and clock out at the last location visited.

magnetic card time clock

 

Software-based timekeeping

This option replaces physical clocks with computers or mobile devices. Software systems are configurable to specific needs and interface with self service and payroll. Site-based systems require employees to sign in or out from a particular work station or computer. Web-based systems provide access from any computer, and many include accessibility from mobile devices that have internet access.

Additional advantages include collecting a variety of data beyond simple hours worked and the ability to quickly “crunch” numbers to create a reports using data collected. The information can be sorted using different parameters and can be viewed by authorized personnel.

These systems often assign pin numbers or logon ID’s and passwords for employee access.

sage insperity web time punch

What are biometrics?

You may have encountered the term “biometric clocks” while researching timekeeping systems. “Biometrics” is defined by Merriam Webster online as “the measurement and analysis of unique physical or behavioral characteristics (as fingerprint or voice patterns) especially as a means of verifying personal identity.”

In the case of timeclocks, biometrics indicates the use of fingerprints, palm print, face recognition, or even iris recognition as a means ot identifying an employee. Obviously, this form of ID would eliminate some time theft by thwarting “buddy punching” which is possible when using cards, pin numbers, and to a lesser extent, swipe cards or smart cards.

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Choosing the right solution 

No matter the size or needs of your company, timeclocks or timekeeping systems can eliminate errors and make payroll more efficient. If your organization’s payroll is complicated with variable shifts, job costing, and remote employees, the web-based options may offer the best solution. A strong human resource management system, like Sage HRMS can add efficiency with a central place to enter data and additional plugins that allow connection with tax services and garnishment management.

 

 

Collect, analyze, and take control of employee labor. Watch this recorded webinar.

Collect, Analyze and Take Control of Employee Labor [Recorded Webinar]

Sage Time and Attendance saves most companies 3 to 5 percent in payroll expenses by providing job allocation, scheduling, and time-off tracking. Learn more in this recorded webinar. 

 

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