Employees Attendance System, its role & importance

By February 5, 2015 January 13th, 2020 Employee Attendance, ESI, Leave Management, Payroll
Employee Attendance System

In any business organizations, tracking of employee time and attendance is one of the most critical factors that affect the overall profitability of the business operations as also the prospects for future growth. It becomes cumbersome for businesses to manually track when individual employees enter and leave office, when are they taking vacation or sick days, and which organizational projects they’re spending their time on.

Under such circumstances, time attendance software can not only record the employee logging time on a daily basis but also add an extra layer of security, accountability and efficiency. A time and attendance system software allows for more efficient payroll and attendance processing. This is a major factor influencing organizations to opt for attendance systems to handle these tasks automatically.

As the name suggests, time attendance software can accurately track hours logged and paid time off. This means that the company can easily put a check on time theft committed by unscrupulous and opportunistic employees in the long run. In addition, it can also make sure certain mandatory conditions or rules are being met.

Some businesses may argue that attendance management software requires costly investment that makes these systems seem out of budget. But with the advancement in the field of information technology, the cost of time attendance systems has become affordable even for the smallest businesses. The installation and deployment of such systems has become simpler as well as the savings in money and time are tremendous.

According to the American Payroll Association (APA), companies that lack automated timekeeping end up having an eight percent error rate on their payroll. The research further points out that an average of 4 hours and 5 minutes are wasted per employee per pay period taking long lunches, being tardy and leaving early.

In the light of these statistics, let us have a look at the advantages of using time attendance software:

Accuracy and reliability:

Employee time and attendance tracking systems are accurate, reliable and provide a great deal of accountability. While the possibility of time theft becomes absolutely zero, this makes the job of payroll processing easier for business accountants and the human resources personnel. The quick and accurate time and attendance records translate to significant savings in the long run and ultimately a healthier profit margin.

Competitive business edge:

With the use of attendance software systems, businesses can gain a clear competitive advantage over their counterparts. In this fast age of information technology, no businesses should leave any stone unturned to be able to leverage every available opportunity to cut overhead costs.

Accessibility and employee satisfaction:

Having the attendance system easily accessible by the employees is very helpful for them to view and submit time-off requests, eliminating questions about how much time employees have accrued, and when they may have taken time off. When the employees can track and enter their work time in a transparent way, it affects their satisfaction level to a significant extent.

Eliminates errors and saves time:

Manual record keeping of employee attendance and time is not just time consuming but also prone to the possibility of errors. Moreover, according to popular perception, manual records can easily be manipulated. An automated attendance system, therefore, can be an effective and reliable solution for almost all sizes and types of companies.


The employment of time attendance software in an organization can add value by helping businesses spot potential problems ahead of time. Using attendance software not only informs the employees in writing about what is expected, but also helps them self-evaluate their commitment to the organization. The cost of investment in the attendance systems is recovered In the long run and businesses eventually end up saving on time, money and efforts.