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Taking accurate attendance of each employee is critical to any business. It is not just for the sake of paying them correctly at the end of the month but also to ensure that they are accountable as employees. The role of accurate attendance data in project management and productivity enhancement is significant too.
Attendance tracking and management have traditionally been done using manual methods. However, manual options are quickly being replaced by modern attendance management software solutions.
A report shows that more than 70% of companies in India, with an approximate employee headcount of 20 or more have already switched to attendance software systems. But even after this switch, some of the core challenges in attendance management are not fully resolved. Issues like time theft, payroll challenges, low productivity and compliance issues are rampant. What could these organizations have done differently? The answer is a biometric attendance system.
Biometric attendance systems take advantage of advanced technology to scan employees' physical characteristics, such as their facial recognition or fingerprints, to verify attendance.
While these systems serve as a more accurate alternative to manual methods, they beg the question: are they cost-effective? This blog conducts a thorough cost-benefit analysis of implementing biometric attendance machine at your organization. By evaluating the benefits and costs that might incur, businesses can decide whether investing in this technology is worthwhile for their organization or not.
An Overview of Biometric Attendance Systems
What are biometric attendance machines?
A biometric attendance machine is a modern digital device that uses the unique physical or behavioural characteristics of individuals, such as their fingerprints, facial recognition system, iris scans, or voice recognition, to verify and record their attendance data.
Several organizations today opt for biometric attendance devices as they are more effective in eliminating manual errors such as time theft, buddy punching, data entry errors, duplicate entries and so on. Moreover, these devices offer enhanced security, accuracy, and efficiency in employee management.
How Biometric Attendance Systems Work?
Biometric attendance systems have undergone significant advancements in recent years. While in the initial days, these devices mostly relied on fingerprints, today there are technologies to identify individuals based on their multiple physical attributes such as face, iris, gesture and voice. Depending on the physical attribute that a biometric attendance machine is designed to scan, how it works varies. Some common methods and how they work are described below:
- Fingerprint Recognition: In a biometric attendance device that uses fingerprint recognition technology, the device scans the unique patterns or the ridges on a person's fingers to verify their identity. They have long been found to be accurate and reliable and thus widely used in majority of the workplaces.
- Facial Recognition: Biometric attendance system that uses face recognition technology is more sophisticated. Mewurk’s contactless face recognition kiosk, for example, uses AI to accurately identify registered employees even in challenging conditions. Typically, these devices have inbuilt cameras to capture images of a person's face and compare them to stored data for accurate verifications.
- Iris Recognition: Iris recognition is the most advanced and thus most accurate identification technology. In this method, the unique patterns in a person's iris, the coloured part of the eye, are scanned for identification. Researches show that these patterns remain unchanged throughout a person’s life. Changes in lighting, health or ageing do not affect identification with this technology. Iris recognition-based biometric attendance systems are mostly used in workplaces which require tight security such as places like financial institutions, defence, border control and immigration.
- Hand Geometry: Biometric attendance machines that use hand geometry work in identity verification by measuring the dimensions and shapes of an individual’s hand. While these types of attendance machines are not very popular these days compared to face, iris and fingerprint recognition-based systems, what makes them ideal is their durability in harsh environments. Similarly in certain industries like manufacturing or construction, the employees might face some practical challenges with other biometric methods like fingerprints. Here, hand geometry recognition works best.
Costs Associated with Biometric Attendance Systems
One of the reasons that discourages many businesses from investing in biometric attendance systems is the fear of higher costs. Most businesses are concerned about whether the costs incurred are worth the investment. Is it going to be a wise investment choice or an unnecessary expense? Here is a breakdown of the possible costs.
Initial Setup Costs
Hardware Costs: This covers the cost required for the purchase of biometric devices (like fingerprint scanners or facial recognition kiosks), network infrastructure, and servers to store and process attendance data collected from the biometric attendance machines.
Software Costs: This is the cost of the attendance management software that works in tandem with the biometric device. You need to check the pricing model of the software—whether it is a one-time payment or subscription-based.
Ongoing Maintenance Costs
Regular Updates and Technical Support Cost: This depends on how the service provider offers technical support. If regular updates and technical support are included with your purchase of the biometric attendance system, you won’t incur additional costs for ongoing maintenance as long as you have an active subscription. Software updates and bug fixes are essential, so it is wise to choose a service that includes these.
Costs for Training Staff: This aspect of the cost covers the expenses of training employees on how to use the biometric system effectively. They need to know how to enter data, troubleshoot the system in case anything goes wrong, and understand system safety procedures. It is worth verifying whether you need to spend additionally for the training or if the service provider offers initial hand-holding to help you get started.
Watch Out For These Unexpected Costs!
When you start with new technology like a biometric attendance system, the initial price tag you’re presented with may not reflect the full reality. If you're not careful and don’t make a wise choice, several hidden expenses can sneak up on you. What you thought would be a smart investment could turn into a financial drain.
Data Security Cost: Before implementing a biometric attendance system, you will have to ensure that there are proper data security measures in place to safeguard sensitive employee data. So, it is recommended to factor in costs associated with data encryption, access controls, and cybersecurity training.
Integration Cost: Check whether you will have to spend additionally for integrating the biometric attendance machine with your existing systems. A system that is easily integrated with your current HR or payroll modules can significantly reduce additional costs for customisation and integration.
Employee Resistance: Be prepared to face resistance from some employees who may be too comfortable with your current attendance management process. The new biometric-based attendance process may create privacy concerns or inconveniences for them. Overcoming this resistance may cost you additional resources or time.
Hardware Replacement Costs: Biometric devices, like other hardware components, won’t last for good. You will have to replace them over time due to wear and tear or technological advancements. Therefore, this should be factored into your long-term costs.
Other considerations: In addition to direct monetary costs, it's important to consider other expenses, such as the time spent on switching from your old systems to new ones and the potential business downtime during the installation of the new device.
How Implementing Biometric Attendance Systems Can Benefit Your Organization
After you have successfully installed the best biometric attendance machine at your office, the immediate result could be minimal to zero manual errors. The system fully automates attendance marking and tracking replacing manual entries which are prone to cause errors from illegible handwriting, typos, or incorrect data entry. Additionally, biometric verification prevents any chances that colleagues (buddies) can sign in for each other.
Cost Savings
Biometric attendance systems reduce costs for your company in multiple ways. For one, they eliminate the possibility of time theft and overtime disputes, as there is accurate data to verify the actual circumstances. Another cost that companies incur comes from payroll errors. With the accurate attendance data obtained from your biometric system, you can't make mistakes in payroll processing, which usually leads to disputes and re-auditing expenses.
Enhanced Security
The biometric face attendance machine works on the basis of a unique face identifier. It means there are zero chances for unauthorized access and tampering. With each employee having a unique ID which cannot be duplicated, they will have to personally clock in to mark their attendance and there is foolproof protection against identity theft or attendance fraud.
Employee Efficiency
Organizations that have implemented biometric attendance systems are reporting increased efficiency among their employees. These systems do not cause any queue time before attendance is registered, which can be an issue in a typical organization with fifty or more employees, where multiple employees want to sign in at the same time. Such situations can often lead to delays and a rush during clocking-in times. Biometric attendance systems mean no waiting; employees can begin their work hours on their own terms.
Compliance and Record Keeping
Biometric attendance systems are preferred by a growing number of corporations these days due to the enhanced compliance standards and accurate record-keeping features they offer. With these systems, getting accurate and real time employee attendance data is no more a challenging task for the HR team. As a result, they are capable of ticking all the regulatory checkboxes, for instance, the Digital Personal Data Protection Act (DPDPA).
Higher Return on Investment
Biometric attendance devices are widely recognized today for their ability to generate a higher return on investment. While businesses may need to invest some money initially to get started with them, when the multiple benefit factors are considered, the return outweighs the investment cost. For instance, an organization that frequently encounters payroll processing errors or experiences a high rate of buddy punching may end up facing more monetary loss than the amount spent on implementing a biometric system. So, it is clearly evident that the ROI outweighs the initial cost. For a clearer breakdown of ROI, see our detailed analysis below.
Return on Investment (ROI) Analysis
To get a clear picture of whether the biometric attendance system is a wise investment choice or an unnecessary expenditure, knowing how you get the return on investment (ROI) which is the initial setup cost vs the long-term benefit in terms of monetary terms, is essential. Your net profit in this case comes from the cost savings and productivity that you manage to get assured from the very implementation of the biometric system.
ROI in Cost Saving: ROI in terms of cost saving when biometric attendance management systems are used arises from reduced labour costs associated with manual attendance tracking, improved time management, and low absenteeism.
ROI in Productivity: Increased productivity from biometric attendance systems results from three fundamental changes in the attendance management process -faster check-in and check-out processes, improved employee accountability, and accurate and real-time data for decision-making. All these productivity advantages together contribute to efficient operations and help a business manage its workforce more engagingly and effectively.
Conclusion
Biometric attendance systems pay off in the long run. They prevent time theft, reduce errors, ensure compliance and automate tracking. They allow you to ensure that your HR staff focus on what they are hired to do rather than spending endless hours on paperwork. With accurate attendance data at their hand, they can make smart staffing decisions, and cut labour costs. On top of that, you will have a more engaged and accountable workforce that is ready to work for your organizational goals. So, considering all these aspects, making the initial investment in a biometric attendance system is worthwhile to consider.
Worried about the initial setup cost of a biometric attendance system for your office? Mewurk makes it easy for you. Our advanced biometric attendance machine features an AI-enabled face recognition kiosk paired with our state-of-the-art workforce management software solution, which is completely free for you to try for up to a year. Get started today without any worries about setup costs!