Attendance management system is crucial for any organization. It allows to track how regular the employees are and also to know about the employees taking leave without any reason. Furthermore, various HR functions make use of an effective attendance management system (such as giving bonuses). Few of the importance and significance of attendance management system are as below.

Helps to track the performance of employees

The amount of time spent by an employee in the office is in direct relationship with the amount of work that the employee does. Thus, we know about his/her performance in the organization.

Tracks employee presence in the office to calculate billing hours

The numbers of hours worked by an employee is a necessary information to know. It helps to calculate the hours worked by the employee. This helps to know how much pay you need to give him/her.

Helps measure cost of direct and indirect costs of absenteeism

  • Direct costs – These are the costs that are directly incurred due to the absenteeism of an employee. These costs include paid leave, overtime cost and replacement – worker cost.
  • Indirect costs – These are the costs that are incurred indirectly due to the absenteeism of an employee. The indirect costs include lost productivity or delayed work due to an employee’s absence.

Helps calculate the rate of absenteeism

Rate of absenteeism is necessary mostly in industries with shifts for employees. By tracking the attendance of the employees, it will be helpful in knowing the employee’s rate of absenteeism that will help the management know when to have replacement workers for the job and for other costs that may incur thereafter.

Attendance management keeps a track of the hours spent in the office and the leaves taken

This information is transparent and thus it is available to both the management and the employee. This will help the employee to know how many days leave is available for the employee. It also helps the management to know how many paid leaves and non-paid leaves to allot for the employees based on the current attendance of the employee.

Inaccurate records of attendance can lead to lot of money in overtime payments. It may also violate labor laws which require an employee to work a certain number of hours a week. Attendance management helps with these issues. It tracks the attendance accurately which helps to reduce the excess money spent on overtime. You can also produce accurate records to the government so as to comply with the labor laws.

The use of technology has enabled many organizations to track attendance more accurately. It provides real time information regarding the attendance of employees. Everything is also available to in real time to the employees as well. An attendance management system is used for this purpose which takes care of the attendance. So, this allows them to focus more on other important work.

Further Reads

Expense Management – Best Practices | OfficeTimer

Future of Leave Management System

Leave Management System | Time Off | Key things to look out for

Project Life Cycle | Project Management Software

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