The time clock punches out - Focus on Technology - traditional time clocks being replaced by electronic and biometric clocks

Time's up for old-fashioned time clocks. Today's high-tech timekeepers do much more than record workers' hours.

As inexorably as in other environments, high technology is converting a time-honored workplace icon into a museum piece. The old-fashioned time clock is rapidly being replaced with electronic and biometric methods of recording time, attendance and productivity.

"It's amazing to see how time clocks have been the last bastion of business in this electronic age," says John Spencer, chief operating officer for Konetix in Boulder, Colo. The company recently introduced biometric elements to its telephonic timekeeping technology product line. "Somehow people still could find the time to transcribe the often barely legible information from traditional time clocks. It's equally amazing to see how Year 2000 concerns and technology advances are causing a high growth rate of the electronic systems. There's a real rush to automate."

The transition to electronic systems is moving a little more slowly at some levels, says Stuart Sackman, division vice president and general manager of Time and Attendance Programs for ADP, Roseland, N.J. "Two-thirds of companies are still unautomated; 95 percent of timekeeping is still manual in the smallest companies [and] 50 percent of the largest companies," he says. "Because work-site requirements can vary so widely, our larger and smaller customers use a mix of mechanisms to collect information, including time clocks and manual time sheets."

But the trend to electronic systems is probably here to stay, he adds, because the new tracking mechanisms have significant advantages for both employers and employees. But HR professionals will need to educate employees about the advantages and overcome understandable fear about "Big Brother," privacy and even hygiene..

Planning the transition

"One of the major drivers in evaluating which technology to use is the characteristics of the people who will be using the time-reporting devices - an area often overlooked when we apply technology to automating a process such as time and attendance," says Mike Smith, vice president of Marketing with TALX Corp. in St. Louis. "Getting the information collected accurately depends to a large extent on people using the technology. Does the device give them feedback? Is it easy to use? Is there a good, simple backup in case the primary device does not work? All of these considerations are critical to users acceptance and consistent use. Making sure the device or system fits the makeup of the users and their workplace is important to overall project success."

The most important aspect of selecting a vendor for automating time and attendance records, according to ADP's Sackman, is to "find one who can grow with you and provide high levels of service." That is vital, he says. "The system becomes an integral part of the company as employees start using it from day to day." He also encouraged HR professionals to select a system that meets company requirements for how information is collected and how time is calculated and reported.

Electronic or telephone timekeeping is ideal for "professional employees who might resent being asked to punch a time clock but need to track their time- or for mobile and telecommuting employees who now can check in from their own laptops to record their time and activities," says Geoff Palmer, vice president of marketing of the Workforce Solutions Division of Simplex Time Recorder Co. of Gardner, Mass. They're also ideal for white-collar workplaces and workforces, such as banks and offices, he notes.

Biometric systems, which rely on physical identification of the employee, are appropriate for "any industrial or manufacturing site, from dirty environments to offices, especially those with a large number of temporary, workers or high turnover, and for companies with several locations," says Bill Spence, vice president of marketing for Recognition Systems of Campbell, Calif. The company's HandPunch line identifies employees by their handprint. "We have 20,000 units in large and small companies - in office environments, foundries, dairies, day care centers, access control or high-security sites, and even at border crossings." Among Recognition Systems' customers is Hawaiian Airlines, which started replacing its "antiquated" clock and manual time-card system with HandPunch time and attendance terminals in 1996.

Automated Systems International of Southfield, Mich., has installed its ATServer with employers as diverse as Sara Lee and Chrysler. The carmaker uses the software system at five of its 32 plants and intends to use electronic and biometric systems in all plants by 2000. "We focus on manufacturing, where the workplace is unionized," says Richard Pennington, chief financial officer. "We have coded the United Auto Workers contract into the system, and it can handle all six unions at Chrysler."

The Konetix product line is "especially appropriate for sensitive manufacturing sites where security is a concern and anywhere requiring general security," says John Spencer, chief operating officer. "TeleTrak is a remarkably adaptive system because anywhere you have access to a phone, you can track time, job, services, attendance. It's ideal for home health workers, delivery people and salespeople in the field.".

Advantages for all

Both employers and employees benefit from adapting and using the new technological time clocks, especially in these days of ubiquitous computerization, telecommuting and constant demands for high productivity in all parts of the workforce. "These systems are cost-effective," says Simplex's Palmer. "Ours can interface with existing computer systems, so there is no need to buy new hardware for most employers. It's efficient - people can record and obtain real-time information. It's also convenient and accurate, especially for people on the road or working from home."

The new biometric technologies can replace bar code badges, saving money on that cost of doing business, according to Spence. "Your hand is your badge," he says. "Most employees love the biometric system because they no longer have to remember or keep track of their badges," says Recognition Systems' Spence.

Electronic timekeeping systems also provide "the ultimate in accuracy," says Spence. "Employers don't have to worry about 'buddy punching,' and it puts employees totally in control. It's convenient, too, since the technology can be used from anywhere in a plant, or from home or on the road by telephone or laptop computer."

"We needed something more reliable and easier to use than a swipe card," says David Enersen, senior director of information technology for Recognition Systems' client Hawaiian Airlines. "We wanted to avoid the problems associated with lost and replacement cards, their occasional misuse and the resulting administrative costs. The system is more accurate and allows us to quickly add or delete employee IDs." Maintenance costs are low and employees find the new system easy to use, he adds.

The systems can track tardiness, overtime and vacation time, says Pennington. "It's beneficial to supervisors because it incorporates union contract details. Instead of just registering where and when someone shows up for work, it has many levels above that and can track what tasks someone performs as well. It can be used to develop cost-benefit analysis. There also is an indirect benefit - the system can report on who's there in a crisis or assess labor costs by product and department information."

Installing the new technology at Chrysler has systemized the payroll process, saving almost incalculable amounts of time and effort. "Chrysler used to have a different payroll person for every couple hundred employees, and each did recording his or her own way," Pennington says. "Now the process is standardized."

At ITT, Pennington says, contemporary timekeeping technology means that employees can review their current HR and benefits records easily and quickly at kiosks on the shop floor, saving time and effort for both employees and the HR department.

A major advantage of these new systems, says Spencer, is that the employer "knows the person coming is who he or she says it is and should be. These systems give employers assurance that time and productivity are tracked accurately and that pay is prompt and accurate. The employee knows that the company is giving fair pay for the work, and the employer can track productivity for [efficient] management decisions and assignments."

Perhaps the greatest advantage of electronic and biometric timekeeping systems to employees - and the one that HR departments should stress - is the enhanced accuracy of payroll and benefits records.

"It's the ultimate in accuracy," contends Spence. That is important to employees, especially those who have ever found an error in what they should be paid and those who travel, commute or work in the field. "Employees can have confidence that they will be paid correctly and that no one is 'stealing' their time," says Konetix's Spencer.

Responding to concerns

Despite their advantages, biometric and electronic methods of tracking time, attendance, tasks and productivity can generate some fear and concern among employees. The biggest fear: invasion of privacy or misuse of recorded data. Hygiene also may be an issue with biometric mechanisms that all employees must touch.

ADP, which provides payroll services to others, anticipated such concerns under its own roof and moved proactively to head them off. "We did detailed interviews with employees when we installed our own system [to assess their concerns]," recalls Sackman. "The first reaction was that 'Big Brother is watching.' We explained that the new systems are meant to create accuracy and equity among employees [rather than monitor their every move]. We stress the benefits, such as being paid accurately and equitably, and that the process saves time and money for the company that can be invested in the company being more successful."

"People get concerned that capturing their fingerprints might result in information being sent to the police or something," says Simplex's Palmer. Biometric handprint systems are less threatening because the identification system does not include fingerprints.

Recognition Systems' biometric device looks like "an odd doorknob," says Palmer, which made some employees worry about hygiene issues. Some Hawaiian Airlines employees were concerned about "being linked up to a national database where information could be used improperly," notes Enersen.

Companies should reassure employees that using the system is safe and clean in terms of both information security and direct handling, he says. "We stressed that the system was to be used only by HR at Hawaiian Airlines and connected to nothing else; this reassurance overcame the original skepticism. As employees began using the system, these anxieties became nonissues. To reassure those who still are worried about physical contact with the new system, Hawaiian Airlines provides surgical gloves.

In some environments, the very nature of the workforce can create a minor disadvantage, says Spencer. "It takes about two seconds to read a palm print," he says. "So a company with a large number of employees who arrive at the same time may need a few more machines just to process employees quickly. That is a small issue, though, and there are advances in that area all the time."

There is a cost for installing any new system, even if only a new software program, notes Spencer. "Typically, the investment in an electronic timekeeping system pays back within three months." He also notes that "there can be discomfort among employees with a change from familiar machines to electronic and biometric systems," but that effective orientation and training can overcome such concerns.

According to Palmer, though, such fears tend to be minimal. "People realize that they have to track, record and monitor information to get paid," he says. "As with any change, employees will have questions. Prepare for questions that relate to what people are comfortable with and remember that any change will make someone uncomfortable."

Others in the field agree, noting that HR can play a key role in reducing fear by providing detailed information-well before implementation-about how these new technologies work, assurance that information will not be misused and an emphasis on how the new methods benefit employees.

Hi-Tech Timekeepers

The time clock is facing competition from a number of biometric and electronic, computer-based options. Some of the programs and systems available include:

* TimeCentre TeleTrak from Konetix, Boulder, Colo. (303-444-8771, www.konetix.com) - telephonic timekeeping technology that gathers information on employee work schedules from remote sites. Employees can send and check information from cellular phones and obtain job orders and task assignments; biometric personal ID technology can be added to eliminate "buddy punching."

* STARStation from Simplex Time Recorder Co., Gardner, Mass. (978-630-2500, www.simplexnet.com) - lets employees clock in and out from a personal computer. Allows employees to view attendance information; can be adapted for use in kiosks.

* ATServer from Automated Systems International, Southfield, Mich. (248-569-9650, www.autosysintl.com) - a software system providing real-time access to data such as time, attendance and labor allocation. Employers can sort labor costs by work order, department, work cells, job function, work process and project;

* OESPlus and Omni:Chron II from Lathem Time Corp., Atlanta. (404-691-0400, www.lathem.com) - two programs that work together for a complete time management solution, from punch in to payroll. Provides access to stored time and attendance data, and exporting payroll data directly into payroll programs.

* Biometric verification services from Recognition Systems, Campbell, Calif. (408-364-6960, www.recogsys.com) - a variety of technology such as the HandPunch biometric hand geometry technology, which helps employers ensure that the right employee is recorded in critical applications such as time and attendance, access control, etc. The technology creates a nine-byte template based on the three-dimensional size and shape of employees' hands.

* IVIS Plus 500 from IDenticard Systems Inc., Lancaster, Penn. (717-569-5797, www.identicard.com) - a video imaging system that provides affordable alternatives for facilities with basic identification badging requirements; comes with software, digital camera, camera cable, tripod and colored back drop. Works with existing PCs to track information about employees; issues identification to employees, visitors and others. Can print any industry standard bar code and generate magnetic strips to make badges to use in automated data collection systems.

Ruth E. Thaler-Carter is a Baltimore freelance writer.

COPYRIGHT 1998 Society for Human Resource Management
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