The use of a time recording system is particularly useful if a company charges its customers for working hours. This is particularly the case for companies that are active in the project business or service sector – e.g. agencies, IT companies, architects or engineers. Time recording is also very important for other companies. This is because it is a fundamental tool for costing, invoicing and controlling. It also reveals opportunities for improving processes and resource allocation.
There are many time recording systems. But which system is the right one for your company and what functions does it need to offer? We present the most important selection criteria.
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Which solution suits your company?
When selecting a time recording system, a number of criteria should be taken into account. The first consideration is: Which type of time recording system is best suited to your company?
Time recording using a hardware terminal is ideal for medium-sized to large companies – especially in the production sector.
Companies that mainly have employees who work remotely rely on mobile time recording systems. Small and medium-sized companies generally use time recording software without hardware.
Other criteria that you should consider when introducing time recording in your company:
- How many employees can the time recording system you are interested in be used for? Free or very inexpensive time recording programs in particular contain a limit on the number of bookings per day or number of employees.
- Is the preferred time recording system also easy to use – both for the employees who use it to record their working time and for the employees in the HR department who manage the recorded times?
- What is the relationship between investment costs and amortization time? Good time recording systems often pay for themselves after just a few months.
Other criteria that you should consider when introducing time recording in your company:
- How many employees can the time recording system you are interested in be used for? Free or very inexpensive time recording programs in particular contain a limit on the number of bookings per day or number of employees.
- Is the preferred time recording system also easy to use – both for the employees who use it to record their working time and for the employees in the HR department who manage the recorded times?
- What is the relationship between investment costs and amortization time? Good time recording systems often pay for themselves after just a few months.
What costs should you expect when introducing time recording?
How much a time recording system costs depends on which type you choose. One rather expensive option is time recording, which used to be done via time clocks and is now done via hardware terminals.
Time recording via fingerprint is particularly expensive, as this technology is still relatively new.
An exclusively software-based time recording system is much cheaper, as there are no costs for the hardware. Here you only pay for the license fees. The amount of the costs depends on how many computers need to be equipped with the time recording software.
The most cost-effective solution is a web-based time recording system, as this only needs to be installed once on a server.
Basically, anyone planning to introduce a time recording system should not primarily think about the costs, but above all about what can be saved through the introduction. Even if employees only spend a few minutes a day on manual time recording, time recording via software or hardware saves thousands of euros. And in most cases, time recording systems pay for themselves in just a few months.
Time recording systems for new working time models
Smartphones, tablets, social networks, cloud computing – technological progress is enabling companies to break new ground. The trends are becoming apparent: technical developments are liberating the world of work from rigid working time models. Company organization is being completely transformed.
As a result, there will soon no longer be a structured working day. Internet-enabled devices and cloud computing make it possible to work from anywhere in the world. It therefore makes sense to consider whether the company’s headquarters and workplace are still inextricably linked. Web-based and mobile working time recording systems already make independent and flexible time recording possible today.
Checklist: Functions of a professional time recording system
When selecting the right time recording system for your company, you should make sure that it offers at least the following functions.
Time recording
- Recording of actual/target and flexitime
- Calculation of flexitime bonuses
- Variable establishment of core times
- Automatic break deduction, variable breaks
- Daily break after minimum attendance
- Rounding option to 5, 10 or 15 minutes
- Variable start of the day
- Overtime limit
- Come/go automatic
- Record project times
Overviews, evaluations, reports
- Monthly overview (print / export)
- Balance/transfer editable
- Employee overview (hours, flexitime, vacation, remaining vacation)
- Presence / absence display
- Monthly and daily target hours
- Overtime worked
- Complete annual overview
- Period calendar (vacation / illness / public holidays)
- Project evaluations
Administration
- Password protection
- Extensive user rights management
- Management of any number of employees
- Project management
- Activity management
- Freely definable reasons for absence
- Import / export employees, bookings, monthly data
- Data export (at least via CSV or ASCII)
- Automatic data backup
- Terminal server support
Connection of time recording systems to ERP solutions
Ideally, the time recording system should be integrated into a company’s existing IT structure – e.g. via an interface to the project or ERP software. However, there are also ERP solutions that include time recording as a fixed component.
ERP software including time recording – the advantages
If ERP software includes working time recording, the times are available directly in the system without having to be transferred manually from other programs. As a rule, these ERP solutions make it possible to simply invoice the recorded working times. This eliminates the additional work involved in invoicing. The different working times and wage models can be easily recorded and all absences, such as vacation, can be planned and calculated in advance.
Connection of time recording systems to ERP solutions
Time recording software is often available as freeware. However, there are only a few free solutions that meet the requirements of a larger company, as the range of functions is often inadequate. However, entrepreneurs who work alone or with just a few employees can easily manage their time recording using freeware.
Larger companies are better off opting for a fee-based time recording system. This is the only way to get the range of functions and evaluation options they need for professional working time recording. In addition, manufacturers of fee-based time recording systems generally offer competent support. This means that questions can be clarified quickly and the time recording software is quickly available again in the event of technical difficulties.
Connection of time recording systems to ERP solutions
For manufacturers of time recording systems, fair treatment of partners and users should be the basis of the company philosophy. Software generally has a short lifespan and therefore quickly becomes obsolete. This is why manufacturers are constantly developing their time recording systems and usually provide updates automatically.
Updates offer this scope of services:
- New program functions and additional modules: All software thrives on feedback from users in the field. Many suggestions for improvement and requests are incorporated into the updates every year.
- Legislative requirements: Regular changes and adjustments to the VOB (German Construction Contract Procedures) or tax law are integrated into the time recording system through updates, as these affect accounting, finance and bookkeeping.
Updating and development of all interfaces: The increasing integration of IT into operational processes requires interfaces to other software solutions and institutions, such as
- Datanorm and GEAB for the trade sector
- DATEV for tax consultants
- ELSTER for the tax office
These interfaces are regularly adapted to new circumstances and requirements.
- Adaptation to new hardware and operating systems: In no other sector is technological development as rapid as in the IT industry. Time recording systems also have to be constantly adapted to new hardware or operating systems.
- Adaptation to new programming technologies: The tools and technologies for software development, such as programming languages or databases, are constantly being developed further.
- Subsequent extensions to the software: Most software solutions have a modular structure and can therefore be individually adapted. This means that the systems can be expanded at any time to include additional functions or additional workstations, e.g. if the company grows.
- Training and support from the hotline: If you install all updates to your time recording system, you will receive comprehensive support from most manufacturers. It is therefore advisable to install all updates.
- Troubleshooting: Software is made by people and therefore errors in the software cannot be ruled out. When errors occur, manufacturers of professional time recording systems usually proceed as follows: They rectify the error and provide users with an update. Once the update has been installed, the software runs smoothly again.
Updates offer this scope of services:
Time recording makes sense for every company. Various factors, such as company size or working time models, determine which time recording system is best suited to your company. When selecting a suitable time recording system, you should not focus primarily on the costs, but above all on the range of functions. This is because most systems pay for themselves within a short period of time. It is also advisable to include the manufacturer’s support offer in your decision.