Clock-In Clock-Out System: How to Choose the Best One & Set It Up

Whether you’re using a manual punch clock or robust time tracking software, hourly employees need some type of clock-in clock-out system. To find success managing hourly employees, you’ll need to put the correct measures in place to:

• Increase time tracking accuracy
• Streamline payments
• Increase productivity
• Ensure compliance

In this post, we’ll explore what a clock-in clock-out system is, how to choose the right one, and how to set one up. Let’s get started. 

What is a clock-in clock-out system?

Employee clock-in and clock-out systems are digital tools used to quantify hours worked by hourly employees to ensure more accurate payroll. While traditional time clock systems have existed for centuries, this time tracking software aims to take businesses into the digital age for:

• More accurate payroll. Time tracking tools track time to the second and can seamlessly switch between website, desktop, and mobile versions.
  
• Better compliance. A digital time clock makes keeping long-term records of employee hours easier for audits, regulatory compliance, and more.
  
• Increased productivity. While manual time clocks track the hours employees work, digital tools can also gauge how productive employees are, plan shifts, and track employee attendance. The best tools let you see peak hours, your least productive websites and apps, and more. 
  
• Streamlined payments. The best employee time clock software seamlessly converts tracked time for payroll purposes. With these tools, working hours become employee timesheets in real time. 

Now that we’ve got the basics down, let’s examine different types of systems. 

Types of clock-in clock-out systems

While manual time clocks are giving way to robust time tracking software, we’re still in a bit of a transitionary period. Let’s take a look at the different types of clock-in and clock-out systems so you can explore which method is best suited for your team. 

Here are a few options:

• Time card system: Traditional paper-based or digital cards to log work hours. These systems are cheaper but leave room for error and are ripe with the potential for time theft issues like buddy punching.
  
• Manual time clock: Physical clocks where employees punch in and out. Like time cards, these manual punch clocks can be inaccurate but cost-effective. They also lack the added features of full-fledged time tracking software. 
  
• Time kiosk: A centralized digital terminal for clocking in and out. A time clock kiosk tends to be paper-free and often has biometric features for better security that also help prevent time theft.
  
• Web-based platform: Online systems accessible via any web browser. These time trackers are powerful tools that usually offer advanced features, but teams on the go might be held back by the need for an internet connection.
  
• Mobile time clock app: Time clock apps help employees clock in and out from their smartphones. It can be hard to enforce mobile time tracking best practices, but the best apps have GPS and geofencing features to automate clock-ins and clock-outs based on location.
  
• Biometric time clock: Systems that use fingerprint or facial recognition to verify identity and log hours. As mentioned above, biometric features help teams tighten security but require extra maintenance since multiple team members use them simultaneously. 
  

How to choose the right system

Now that you’ve seen the vast number of time and attendance tracking systems available, it’s time to choose the right system for your organization. Before you dive in and start testing products, we’ve put together a list of steps to help you make the right choice: 

• Assess your needs. Consider your business needs based on industry, location, and size. Do your employees work in-office, remote, or in the field? Will you need employee scheduling? These factors will help you determine what features you might need. 
  
• Evaluate options. Once you’ve identified the features you need, it’s time to explore the different systems available. While manual time clocks, kiosks, and other solutions are costly to install, software solutions usually let you start a free trial. There are also free time clock software options available. 
  
• Ease of use. While features, price, and free trials are essential factors, you’ll also need to assess your team’s skill level and identify how important ease of use is for your selection. Ease of use for a tech-savvy remote team may look much different than that of a handy distributed team.
  
• Compliance. While tracking employee hours is legal in the U.S., you’ll need to consider laws in the state, industry, and position your employees work in. Finding tools that help you meet FLSA, DCAA, and other compliance standards is crucial.
  
• Budget considerations. High-end features, ease of use, and compliance standards are important but often come at a price. Make sure the features of the tool you choose help offset the price tag. 

How to set up your clock-in clock-out system

Once you’ve decided on a clock-in and clock-out system, it’s time to set it up correctly and begin onboarding and training your team. We’ve put together a step-by-step guide to help you make this process go as smoothly as possible. 

1. Installation process

Install the software on your computer and follow the steps to create an organization, create teams, and add employees. You can skip this process if you started a free trial during your product discovery phase. 

2. Training employees

Once you’ve onboarded your team, it’s time to train employees to clock in and out. Some tools have training videos, webinars, and other resources. The inability to properly train employees can hurt your adoption efforts and damage rapport with your team, so don’t skip this step. 

3. Integration with existing systems

With your team now trained and using the time tracker, it’s an excellent time to explore integrations for improving project management, communication, and other areas of your business. If you plan to use a time tracker to pay your team, it’s crucial that you properly configure and test any payroll integrations before teams start tracking. 

4. Testing the system

Once you’ve completed the first three steps, it’s time to test the time tracker, generate a timesheet, and make a test payment. Start by tracking a small amount of time on your account. Or, add manual time to make the test transaction as small as possible. 

Then, convert the time to a timesheet and submit it. Ensure that the payment is made on time and at the correct rate. Once you’ve confirmed that the pipeline works from the time tracking stage to payroll, it’s time to open the doors for your team to start tracking time. 

Troubleshooting common issues

Unfortunately, several issues could prevent you from completing step four above. Here are a few examples: 

• Technical problems. The best time tracking tools are easy to use, but sometimes the setup is anything but. If you’re having issues onboarding employees, making proper payments, or configuring integrations, look to tools with excellent customer support, tutorials, or live chat to guide you. 
  
• Employee resistance. Sometimes, time tracking issues aren’t technical at all. Whether employees lack the proper training or are simply too set in their ways, you need to articulate your time tracking guidelines with consequences for teams that don’t embrace this new technology. 
  
• Compliance concerns. Even if the tech is working and your team has bought in, you might still have some compliance concerns. That’s why we advise using payroll integrations with the best tools available. Premier payroll solutions like Paychex, Gusto, and Paylocity have built-in compliance features and an extensive knowledge base on their respective sites. 

Clocking out

There are plenty of clock-in and clock-out options, such as kiosk stations, mobile apps with geofenced time tracking, or desktop time trackers. No matter which system you choose, the important thing is to create a culture of trust and transparency that encourages teams to track time honestly and without fear. 

By implementing the right tools and strategies, you can help your team reach peak efficiency, make more accurate payments, reduce labor costs, and modernize your business for years. Do you have any favorite time tracking solutions? We’d love to hear about them.