Are You Still Stamping or Are You Already Booking? What Electronic Time Recording Can Do for You!

Electronic timekeeping is the automated capture and management of working hours and provides a transparent overview of recorded presences and absences. For this purpose, electronic systems, timekeeping software, scanners or mobile apps replace old-school paper forms and Excel lists. Not only is this modern, it's also extremely accurate, transparent and reliable. The collected data are used for payroll, overtime management, work scheduling, leave management and the fulfilment of legal regulations regarding work time monitoring.

The ECJ already emphasized the importance of timekeeping in May 2019 and decided that companies must record the working hours of their employees using an objective, reliable and accessible timekeeping system. On 13.09.2022, the Federal Labor Court (BAG) followed and ruled a requirement for time recording in companies and businesses in Germany. But it is not only due to the new legal situation that companies should now take action to fulfil their obligation to record the working hours of their employees.

Basically, timekeeping is not a new topic for companies. However, in the past, manual time recording was the predominant way in companies to record working hours. Even today it is still used in - mostly smaller - companies where work time and personnel administration is less complex.

As a rule, employees must record their working hours themselves, for example by manually clocking in and out on a time clock, by filling out timesheets or by writing reports on their activities. This data is then manually entered into a system or recorded by the human resources department in order to create payrolls, calculate overtime and absences and create work time reports.

Electronic time recording systems are a modern alternative to manual time recording. What are the advantages and disadvantages of such a system?

Advantages of electronic time recording

1. Electronic time recording systems are accurate: Errors that can occur through manual entry when transferring data from good old punch cards for the time clock are avoided.
2. The system captures and stores data automatically: This saves time for personnel management. As a result, time is freed up for other important things like recruiting and employer branding.
3. Electronic time recording systems automatically calculate overtime and clearly record sick days and vacation days: Customized reports can be created at the click of a mouse that present work time data in a useful and easily understandable way.
4. Everything is above board: By using electronic time recording systems, companies can ensure their compliance with legal regulations for work time monitoring and compensation.
5. Most systems are web-based , which means that employees and supervisors can access and manage the data flexibly via the internet.
6. Trust-based work time is still possible: This requirement for work time recording complements the existing trust between employer and employee with documentation without restricting the flexibility of trust-based work time.
7. The use of electronic systems for recording work time is subject to the highest data protection regulations,,so what needs to remain secret stays secret.

Disadvantages of electronic time recording

1. The acquisition and operating costs may be higher than for manual systems.
2. Modern systems are mostly intuitive to use, but employees may need to be trained to use the system correctly. This involves time and resources.
3. Electronic time recording systems can have technical problems that can lead to unexpected failures. Security backups mitigate the risk, but work is still created in this case.
4. Electronic time recording systems are only as accurate as the employees are honest. It is theoretically possible that a few black sheep enter false data and thus manipulate their presence.

Important steps to introduce your time recording system

You are convinced! Great! And now what? Which steps are important for you or the managers in your company to introduce an electronic time recording system?

Define requirements: Initially, it is of fundamental importance to define the features that the electronic time recording system should include now and in the future. Define clear objectives and expectations that take into account the development of your company. Find answers to questions such as:

• How will the number of employees develop over the next few years?
• From which location do employees do their work? In the company, in the home office, at customers - or hybrid?
• Is the work time thus recorded at terminals, on PCs, in apps or in a combination of everything?
• In addition to working hours, should absences such as vacations or sick leave also be recorded?
• Should the electronic time recording system be connected to payroll?
• Are there other existing systems that should communicate with the electronic time recording, such as an existing access control, the cafeteria system, printer releases or burglar alarms?
• On which platform will the electronic time recording system be installed, on a server or should a cloud-based solution be used?

Suitable business partner: Choose a provider who will work with you to find the answers to the above questions and then offer you a suitable system. It is also important in choosing a provider what kind of support they can offer you. Good accessibility and availability are of great importance to you when things are not going smoothly.

The right tools for electronic timekeeping

There is a multitude of tools for electronic time recording, that can be used in companies. The selection of the right tool depends on the specific requirements and needs of your company.

The complete solution: NovaTime-Systems are a powerful all-in-one solution to enable human resources, management and employees to have modern time recording and access control. This software was developed for Windows operating systems and, in addition to time recording, also includes features like building access control and absence management. The NovaTime base package is designed for 25 employees and can be expanded up to 5000 employees.

The agency solution: Teamleader Orbit is an agency software that is particularly suitable for marketing agencies, digital agencies and IT companies. With this tool, users can not only record work time and project-related hours, but also manage customers, plan and track projects and budgets and create invoices.

The modular solution: Hansalogis a modular solution for almost all areas of human resources. Modules can be used individually and can be supplemented at any time with additional licenses. The software includes a time recording module and optionally also functions of payroll, recruitment, human resource management and travel expense accounting. A staff portal can also be integrated. With the "ERPSocial" module, Hansalog also offers an integrated software solution for social facilities in the care of people with disabilities.

The cloud-based solution: P&I LogaHR is a modular, cloud-based solution for all personnel processes in digital and strategic HR management. This HR platform covers Payroll, Digital HR, Strategic HR and Time Management modules. The individual modules are networked, and the data is available in real time across systems. With this solution, companies can automate not only the time recording of their employees but also pay slips, applicant management or their organization management from a single software solution.

Last but not least: making employees fans

Make sure all stakeholders understand how the system works, how they can operate the system themselves and possibly manage it. Show them what benefits they receive from using an electronic time recording system.

It saves you time: Electronic time recording helps you spend less time on manual processes. The system records your working hours automatically, thus relieving you.

You can plan better: Through electronic timekeeping, employees can accurately document, manage and monitor their own working hours. This high transparency allows employees to access the current status of their overtime and vacation days at any time. Working time models can be ideally used by accumulating overtime hours and then compensating them with days off - or by avoiding additional overtime. This transparency helps the company avoid misunderstandings or errors in the calculation of working hours.

It is fair: In general, the accurate documentation of working time ensures a fairer remuneration for all employees. Electronic time recording ensures that all employees are treated equally, as the system automatically applies the same rules and guidelines for the calculation of working hours to all employees. This is particularly relevant for part-time workers and shift workers.

Involve employees: Good electronic time recording does not happen in a quiet room! Inform all your employees beforehand about the implementation of an electronic time recording system about the benefits of the system. Involve institutions such as a works council in your considerations in good time. They have a say in the decision to introduce electronic time recording. Talk to your IT colleagues so that the necessary infrastructure for your electronic time recording is available.

Conclusion: Why you should introduce electronic time recording systems in your company

Electronic time recording systems are suitable for companies of all sizes. For entrepreneurs, these systems improve efficiency, accuracy and transparency in recording working hours and reduce administrative work. For employees, they make it easier to apply for vacation and free time and manage their absences. This can simplify the approval process for absences - and make for more satisfaction. And that's what counts, right?