Failures of a Time Clock Punch Card System

Businesses around the globe have traditionally turned to the time clock punch card system as a convenient way to track their employee’s attendance at work. Unfortunately, this traditional system has been shown to have flaws and isn’t always the most reliable. Read the following reasons a traditional time clock punch card system isn’t right for you:

Not a verified identity.

A traditional time clock punch card system has many vulnerabilities that aren’t easily addressed. Deceitful employees can use the principals of a time clock punch card system to their advantage to gain more payroll time. For example, employees can work in tandem to defeat the time clock by punching in and out with cards other than their own. Without identifying who is punching in or out, businesses leave themselves vulnerable to this type of fraud. Without using a verified identity system such as a fingerprint reader, this fraud is likely to absorb a portion of any business’ payroll costs. Businesses investing in such a technology have seen a decrease in fraud. Decreasing fraud can be essential to trimming payroll costs.

Early or late punches.

While punched in, most businesses do not question if the employee deserves to be paid or not. Employers will assume that even if early or late, an employee was working and had a purpose at work. However, with a traditional time clock punch card system, employees have the potential to assign themselves as working even though they might not be doing any job duties. To avoid deception from untrustworthy employees, it is best to attach your time clock system to a system that can alert supervisors of discrepancies immediately – something a punch card time clock system simply can’t do. This fraud must be stopped.

Easily Altered.

Since a time clock punch card system writes in ink, entries are easily changed. Dishonest employees can attempt to create their own cards at home. This can be difficult for employers to trace and is often not caught right away. This is easily stopped with an electronic or biometric time clock system. Though this isn’t a common form of fraud, it is common enough to consider. Businesses should protect themselves as much as possible from this deceit.

Cumbersome and Expensive.

Ink and paper for a time clock punch card system can be a major expense for companies. Unfortunately, many businesses see it as a necessity. These expenses can be avoided with an electronic punch system. Because of the ease of use with an electronic system, companies may also save money by providing accountants with less paperwork. Electronic systems can contribute to many cost savings over traditional a time clock punch card system.

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