The Pros and Cons of Using Punch Clock within the Workplace


5 min read

The Pros and Cons of Using Punch Clock within the Workplace


    The pros and cons of using punch clock within the workplace

    In our modern world, we expect our systems to run smoothly and efficiently, ensuring accuracy and ease. We want all of our systems to be as efficient, accurate and easy to use as possible. The punch clock is no exception. It's an effective way of keeping track of employee timekeeping, which can lead to more efficient business processes overall.

    What exactly is a punch clock and why should your business consider having one?

    What is a punch clock?

    A punch clock is a timekeeping device that records the exact time an employee clocks in and out of work. It is also known as a time clock. This device was invented in the late 1800s, but did not become widely used until the 1960s when they were introduced into factories and offices. Today, these devices are found throughout all types of workplaces including restaurants, retail stores, and offices.

    The question remains is an employee time clock system something you should incorporate into your business operations 

    Let's check out some pros and cons of using employee time clocks.

    Pros of using a punch clock

    There are multiple benefits to using a punch clock. The biggest benefit is that they're an easy-to-use, affordable time management software. But that's not all. Below we outlined the many perks of the punch clock

    Employee time tracking

    Punch clocks are designed to be simple and quick, allowing employees to easily clock in and out of the workday at the push of a button.

    For employers, it means they can keep better track of exactly when each employee clocked in for each day or week, which will help prevent payroll errors and make it easier for employers to ensure that employees are only being paid for the time they were actually at work.

    As well as providing accurate data for the purpose of calculating wages and benefits, punch clock data also serves as an audit trail, helping employers identify exactly who was working during specific times throughout the day/week.

    Reduced time theft

    Another reason to use a punch clock is to reduce time theft in your company. Time theft can be a big problem for businesses of any size - from small businesses to larger ones. If you pay hourly employees and you're not tracking their hours worked, how do you know if you're paying them the right amount, or if you're meeting your staffing budget?

    Improved employee efficiency

    Punch clocks are a great way to improve employee efficiency. They are the most basic, but also the most effective time management tool. Punch clocks can be synced with other time management tools and software, which makes it easy for managers to track their employees' hours and locations.

    Keeps employees accountable

    Punch clocks can be used to track attendance and productivity as well as keep employees accountable for their outputs. For a lot of people, when they know they're 'on the clock', it spurs them on to do their work.

    Integrates with payroll software

    The punch clock is most commonly used as part of a payroll system. The punch clock records the time an employee has worked and feeds that information into the company's payroll application. These records help keep track of how much time was spent on staffing, helping managers when it comes to cutting costs and determining staff budgets.

    Cloud based system

    A cloud based time clock system can be more accessible and reliable than their on-premise counterparts. A cloud-based system is accessible to employees all over the world at any time, so they can punch in and out wherever they happen to be.

    The reliability of a cloud-based system is also better than that of an on premise solution because it requires fewer resources and doesn’t need you to install or maintain costly hardware.

    Cons of using a punch clock

    Late doesn't always equal lazy

    While the punch clock is an efficient way to track time and attendance, it doesn't take into account that not everyone who arrives late to work is necessarily being lazy. The punch clock isn't able to differentiate between employees who come in on time but then leave early for personal matters outside of work, versus employees who show up late every day for no reason.

    And then there are people who forget to punch in and therefore aren't accounted for, or fail to punch out at the end of their shift and seemingly work overtime.

    Doesn't provide proof of work done

    The punch clock is not a good way to track an employee's productivity, because it can't verify that an employee actually did the work. It can tell you when and where an employee clocked in. But that's pretty much it.

    A better solution would be to use a clocking system that tracks each employee's location and hours worked throughout the day, in conjunction with a project management tool. The final decision as to whether the work has been done lies with the managers - who need to approve the final hours worked and payroll costs.

    So, should you use a time clock solution?

    We're slightly biased, but we believe punch clocks are a beneficial timekeeping software solution for both employers and employees. They automatically track employee attendance (negating the need to manually track hours), as well as monitor employee hours, and record work times, helping payroll run smoothly.

    Planday: save time and reduce costs

    Punch clock systems are a good way to keep track of employee hours, as such, they can also help automate payroll and shift scheduling, freeing up managers from having to manually do these time consuming tasks.

    Because punch clocks are such an important part of many shift based businesses, we have developed ours as a key feature of our scheduling and communication tool. With Planday's Punch Clock feature, you can monitor attendance and always have accurate timesheets. You stay on top of costs with time tracking; employees clock in and out of their shifts giving you clear oversight of who is working when, where, and how.

    With Planday's configurable Punch Clock feature, you can track time as and when you need it. You can choose to set up a punch clock station in a physical location, or simply allow staff to check in via their mobile phone. Either way, with our staff management software you get increased transparency of hours worked, ensuring every team member remains accountable and compensated accordingly

    To find out more about how Planday can help your day work better, get in touch with our team and set up a free 30 day trial. 

    © 2004 - 2024 Planday