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7 Reasons Why Your Organization Needs an Attendance Management System

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Ever had to shuffle through papers with attendance logs? Have you ever had to deal with frustrated employees who have to deal with payroll errors?

If yes, then you might need a smarter way to manage your company’s attendance data.

Gone are the days where your company has to deal with human errors. With the advancement of technology, you can implement smart systems that can save all your attendance details, minus all the stress.

With small and mid-sized organizations working with more than 50 employees, there are several solutions that can help in keeping detailed records of their comings and goings.

Before we get to why your organization needs attendance management systems, let us look at what exactly it means.

What is an attendance management system?

Time and Attendance Software offers attendance and timekeeping solutions in accordance with company requirements.

There are a large variety of tools and capabilities offered in such HR systems. While one software handles project tracking, another one can exclusively track employee attendance.

A timekeeping system without attendance management only gives insights into hours taken by employees to finish their tasks.

Their settings differ from those of a time and attendance module, which offers error-free real-time reports and attendance logs.

This can also be achieved with cloud-based attendance management software that provides a complete overview of every employees’ working hours through the week/month, daily work duration, punctuality, and some additional features such as payroll & biometric integration.

For a detailed insight into such softwares, check out this article on time and attendance software and what should be your expectations for it.

Does your organization need attendance management software?

Tracking employee attendance is a major HR function. Organizations need accurate records of absenteeism, overtime, clock-ins, and shift timings to calculate payroll and measure productivity.

However, if your company is facing the following problems, you probably need to switch to an effective attendance solution.

  • You observe lots of errors in your attendance records.
  • Your time-off requests have to be approved manually and take a lot of time.
  • Employees can change their records easily.
  • Your company faces problems with buddy-punching.
  • You have no idea how much work an employee puts in a day.
  • You need to call up your employees to ask them why they are not at the office on a workday.
  • You are experiencing a productivity drop.

The above-mentioned problems are real issues faced by several businesses that operate manually.

Fortunately, all these problems can be solved by integrating effective attendance management software.

Benefits of attendance management systems to your organization

7 Reasons why you should adopt an Attendance Management System

An online attendance management solution can be a godsend for organizations struggling to meet business goals and keep accurate records of employees.

So, here are a few advantages of attendance software for your organization.

1. Tracking employee performance

Daily attendance is a really important metric to measure performance. The time and effort put in by them on a daily basis reflect in their results.

If you observe that their performance or productivity has reduced, you can attribute it to their presence or absence in the workplace.

Your workforce can be held accountable for their performance with their record of attendance.

A software system will document the clock-in and clock-out time of employees and how often they are present in their workplace. So, you as an HR manager do not need to look through paperwork or excel sheets to help you in this process.

2. Payroll processing

Payroll and attendance go hand-in-hand. To calculate the exact amount that you need to pay employees, you need accurate attendance records.

This includes the overtime worked by the employee, the leaves, paid time-offs, vacations, half-days, and more.

The web-based attendance management system can do all these processes for you!

An ideal attendance management software will be integrated with a payroll module as well. This way, when you calculate your monthly payroll, it will take in all the above-mentioned factors before coming up with an accurate amount of salary for each employee.

After this, there is no way an employee can complain about miscalculation or error in the final salary.

3. Calculating absenteeism

Absenteeism causes huge losses for organizations. There are direct and indirect costs incurred by companies when their employees show patterns of absenteeism.

Absenteeism can be very expensive for your company. A study showed that US businesses lose 225.8 billion dollars each year due to this factor.

This is why you should be monitoring the presence and absence of employees closely. Obviously, you cannot do that all the time as HR managers have to juggle a plethora of responsibilities.

You can leave this task to automated attendance systems that easily display the days absent by employees.

This way, you can analyze these patterns and hold employees accountable. If they breach your company policy, then you can relieve them of their duties in order to save further losses to your company.

4. Managing remote workers

Unless you have divine vision, you cannot monitor workers when they are on-field, at-home or out for work-related travel.

So, to get accurate updates about employee location when they are within their work shift, you can use the services of the GPS feature in your attendance software.

This module will help you see where your employees are logging-in from. You can ensure that they are in the correct location through these records.

5. Assigning different policies

Not all departments have the same attendance requirements. Although your entire company functions within a time frame, different teams and employees can have different timings.

As work becomes more flexible, different departments are coming up with unique schedules that can help them achieve their goals. This includes overtime, leaves, shifts an so many more components

This means that they will have different attendance policies. However, you cannot keep a track of each policy and whether employees are adhering to them.

An efficient attendance management software will erase this problem once and for all.

You can assign different policies to individual workers, depending on the department that they work in. The comprehensive records of attendance will show you if any worker has breached the policy.

In addition to this, employees can check the policy that they have been assigned through the employee self-service portal that most HR software come with.

6. Easy clock-in and clock-out

You definitely cannot be in all places at once, looking at which employee has made it to work and who is absent.

You can leave this school-era monitoring system behind due to this feature.

With the help of biometric technology, you will know the clock-in and clock-out timings of works, minus the buddy-punching.

With fingerprint scanners and a unique identification system, it is really “to each his own”. Nobody can log-in for their teammate.

Also, to measure productivity, you can have workers clock-out when they are taking a break and clock-in again. This will help you measure their break-time so that you will receive accurate productivity metrics.

7. Centralized server

The best part about a centralized cloud-based attendance management system is that you can access it from anywhere.

Your company might be operating from various locations in the country or around the world. However, all your attendance records will be stored and accessible from wherever you log-in.

As a supervisor or manager, you will have exclusive access to this data no matter what device or network you log-in from.

Also, your colleagues can clock-in using a web browser if they are in a remote location.

This feature is convenient for everyone and a godsend for HR managers as they have control over all the data that they need.

8. Cost-Effective

Manual paperwork to calculate the attendance of employees is a tiring and never-ending process. It is also highly time-consuming. At the same time, in the case of a large-sized company, the organisation needs to hire more human resource managers to continue with this never-ending manual work. On the other hand, an attendance management system helps ease the process by converting all HR tasks, small or big, to an automated process. 

9. Accuracy

With manual work comes the scope of errors. Human resource managers may make small human errors affecting the employees greatly. However, an attendance management system eliminates this scope of errors, making it highly accurate. 

10. Workflow Management

Since the attendance management system helps human resource management access real-time and accurate data, they can approve and reject leaves better. At the same time, employees can also track their attendance and understand the number of leaves they have to plan better.


Now that you know how many benefits attendance software can have for your organization, it is really important to find the perfect fit for you and your workforce.

As for HR software in India, many vendors provide a wide variety of features at different price points.

However, we want to make this task a little bit easier for you.

If you want to implement an attendance module for your company, then check out sumHR’s features. From geo-fencing to payroll integration, we have made this software with the needs of a modern HR department in mind.

Our easy compliance and state-of-the-art technology might help your HR team handle their operations better.

To test sumHR’s attendance management system or any other suite for that matter, just book a Free Demo with sumHR.

Frequently Asked Questions (F.A.Q)

What Features Should a Timekeeping Management System Have?

While all the above-mentioned features come together to make a well-functioning system, here are the core features that such a management system must-have.

  • A web-based attendance system that collects, stores, and organizes employee data
  • A cloud-based platform for remote workers to clock-in from anywhere
  • Integration with payroll and other HRMS suits for smooth flow of data
  • Company policy allotment and reports of break-in policies
  • Leave management system

Why tracking your employees’ time and attendance is important?

Employees are the most valuable asset in all types of organizations. The overall company performance depends largely on the productive working hours put in by its workers. Organizations need to monitor time and attendance activity as employers need to understand how their workers are making use of their eight or nine-hour shift.

Employers can determine who is following rules and regulations and who is not. They can receive insights into their productivity and efficiency and the effort put in by a worker on an average workday.

This process will determine the sincerity of the worker and whether they are a good fit for the organization.

What is the best attendance management system?

An attendance management system that understands your company’s requirements and can be altered to fit your needs is the best. The software should help the company and the employees track real-time attendance. It must be highly accurate and reliable. Moreover, it must be possible to alter or edit the details as and when needed.

Which factors should you consider before purchasing an employee attendance management system?

You must consider some factors before buying an employee attendance management system.

  • It must be easily traceable in real-time to provide highly accurate data. 
  • It must be easy to use and understand by employees. 
  • Employees must find it easy to check in and check out. 

What are the types of attendance management systems?

Here are two commonly used attendance management systems.

  • Biometrics – Systems that use biometrics such as fingerprints or eye scans for check-in and check-out. 
  • Key card system – Each employee has their key card, which they must scan for check-in and check-out.
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<small style="font-weight:400;font-size:16px;">Written by</small><br>Team sumHR
Written by
Team sumHR

SumHR is a flexible and configurable end-to-end HR Software/HRMS which help HR teams automate the HR Processes, and improve the employee's HR experience.

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