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  • Writer's pictureShy Lee

The Monetary Prospects of using an Attendance Management Software for SMEs

Updated: Dec 25, 2020



The SME sector has been sticking to the traditional methods of processing the attendance data. They rely on the registers and musters to record and store the employee presence information but the systematic risks associated with the manual processing of attendance. One of the major setbacks for using the conventional method is the lack of credible information. The businesses need accurate data on the employee presence for remuneration purposes. Implementing a completely automated solution will empower the businesses in the building and enforcing a tailored attendance policy for all the staff members irrespective of the nature of employment and the location of the operative site. The article will consider the cloud-based Attendance Management Software because of the technical advantages and them being more affordable at the same time. The article will focus on the benefits of using automation-based attendance solutions, especially in the context of the SME sector in the Indian subcontinent.


Common Platform for all Employee Cadres and Modes of Engagement

The AMS will provide the platform for the grass level employees to the senior management authorities. The permanent staff members and casual labor are given identity-based on the biometrics largely. The staff members have to mark presence by punching on the biometric machines. The data is recorded and uploaded to the system database for the single window processing of the information. The senior cadre staff can use the ESS Portal to mark their attendance from their smart devices or laptops also. The casual labor which is engaged by the company can be allocated with temporary identity credentials so that their working hours can be tracked easily. The HR administrator can set the expiry limits of the credentials to ensure that mismanagement doesn’t happen. These modes of marking presence and leaving the company premises are run on the single system, which is a great relief for the company management. On the other hand, the cost of operation remains under control as there is no requirement of manual correspondence or human intervention in marking the employee movement. The freelancers can be given access to the system for timekeeping purposes, and they are paid in accordance with the company’s policy applicable to them. This ensures that the pay policy remains fair for all modes of engagement. The contractual staff is also accommodated with the necessary system changes relevant to them.


Use of Modern Technologies

The users can also mark their presence using the Geofencing technology. Once the staff members enter the company’s premises, the system automatically captures punch with the use of their mobile devices. These locations are virtually set up to comply with the physical location of the company office, and the staff members are given corresponding credentials. Geo tracking allows the system to track the live location of the employees. This shall be used in the case of the traveling employees and especially the salesmen. Their timekeeping is therefore simplified for the purpose of processing salaries. The companies in the consultancy business are also benefited as the aspiring enterprises are engaged in the consulting of more substantial companies too. The employees at the client end are therefore kept track of, and their utilization is ensured.


Reporting and the Integration with the Payroll Processing

The system generates comprehensive data on the employee’s time spent on the company premises and even on the work from home basis. They are accommodated under a single channel processing system, but the reports generated are comprehensive in nature with extensive use of focused information being reflected. The attendance system software also generates the statements used for the statutory compliance filings, and the HR department is relieved from the handling of legal aspects of attendance processing. The attendance is the principal pay component, and all others are calculated based on it. Therefore, this information is directly used by the Payroll Processing module.


In essence, the attendance management system is highly customizable, and they make the entire process very simple and effortless. The recording to report generation of the attendance data is automated completely, which eliminates the need for the human intervention of all the stages. The cost of operation is very low, and the flexible payment model will be a cherry on the top for the SME sector in India.

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