Why Automate Time and Attendance?

In today’s constantly changing business environment, companies are facing strong competition and aggressive enforcement of federal, state and local labor laws as well as wage and hour lawsuits.

We’ll look at five reasons organizations automate their time and labor management to help minimize labor law compliance risk, free time to focus on strategic initiatives and improve employee morale and productivity.


While it may seem like an oxymoron, gaining efficiencies and reducing the effort to collect time and calculate payroll through automation, especially across multiple locations, is an excellent business justification when automating time and attendance.

cost control

Payroll is usually an organization’s number one operating expense. Companies want to minimize the financial hemorrhaging that occurs because a manual system lacks stringent controls.

An American Payroll Association study revealed that manually calculating payroll takes 5-6 minutes per time card. The study also discovered that, on average, organizations overpay 10 minutes per employee per day.

In addition to this, other research has shown that companies pay half a day of unearned PTO per year.

These findings reveal a significant opportunity to reduce the overall cost of payroll.


Manually tracking time and attendance exposes organizations to greater risk of not complying with labor laws and the danger of expensive settlements.

In 2004, the US DOL beefed up enforcement of labor laws overseen by the agency. They also started enforcement initiatives focused on “at risk” industries in which employees were more likely to be taken advantage of by employers.

At the same time, wage and hour lawsuits were on the rise with large payouts to plaintiffs and their attorneys.

Collecting an accurate record of work hours can help defend a DOL audit or quickly defeat or diffuse a class action lawsuit.

time theft

Time theft takes many forms including the well-known buddy punching and employees being asked to work off the clock.

An accurate record of employee hours can help diffuse the distrust between employees and employers that occurs as a result of these practices.


Having survived the worst of the “Great Recession,” organizations are looking for opportunities to maximize production while minimizing costs.

Data collected by the time system can help analyze trends in productivity and employee behaviors, such as identifying departments abusing overtime or PTO trends predicting the possibility of employees leaving.

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