Payroll leakage is commonly considered as a significant drain on both, employee productivity and profit maximisation by businesses. Payroll leakage is usually explained as money received that’s not rightfully earned in layman’s terms. It can occur in a number of different ways such as time clock theft, proxy attendance, buddy punching and over-extended break times.
Biometrics is now establishing a major role in the workplace to defend against payroll leakage and safeguard healthier bottomlines. Hence there’s a strong case for biometrics adoption and implementation by businesses to plug payroll leakages.
Why does an organisation need biometrics to eliminate payroll leakage?
Biometrics extracts and captures the unique human physiological characteristics to identify a person. Not that long ago, this kind of technology was only featured in science fiction movies, but more recently it is the first choice technology for most government identity projects and many law enforcement agencies around the world. Nothing currently comes close to matching Biometric technology, for speed and security.
A biometric system helps identify a person by unique biometric credentials such as a fingerprint, palm vein or iris, which cannot be lost, forgotten, hacked, or easily duplicated. This ensures a lower level of risk exposure many companies face in any kind of payroll leakage.
How can biometrics defend against payroll leakage?
Here is a summary of the key features a biometric system can offer and how it can help eliminate payroll leakage:
Accuracy: As biometric credentials for every individual are different and cannot be counterfeited or replicated, biometric solutions present the most accurate system to identify any individual. Biometrics will help accurately track employee time and attendance like early arrivals, early departures and unauthorised overtime.
Buddy punching: This is the practice of punching another employee in or out when they are absent and it is this method of payroll leakage that is most easily eradicated by biometrics. As biometrics characteristics cannot be replicated it prevents employees from punching in a co-worker while not present in the workplace.
Fake punching: In the erstwhile manual and password or PIN-based attendance management systems, employees could easily commit fraud by sharing passwords. However, biometrics identifies a person by who the person is rather than what the person carries such as PINs, passwords or an ID card.
What are the advantages of using biometrics to defeat payroll leakage?
There are some significant advantages that can be achieved through implementing a biometric time and attendance solution within an organisation:
Maximise profits: The American Payroll Association estimated that the practice of buddy punching alone affects close to 75% of businesses in the U.S. and can cost a business up to 7% of its gross payroll annually! Biometric solutions can save a company from paying incorrect wages by preventing buddy punching and providing accurate attendance data.
Reduce staffing costs: The installation of a biometric system to manage business costs will subsequently reduce staffing costs. Manually collating, monitoring, calculating and processing weekly or monthly timesheet data takes a significant amount of time. With an automated biometric tracking system, organisations are better able to increase efficiency and save money. Using a biometric system does away with the need for swipe cards and PIN numbers, so no more wasted time in reissuing a lost swipe card or resetting a forgotten pin or password.
Improve productivity: Biometrics attendance management system eliminates the need for keeping and maintaining manual time and attendance records, decreases staffing overheads and provides accurate staffing data on the payroll system to effectively streamline human resource costs. This eventually leans in on better profitability.
To summarise, the case is clearly loaded in favour of biometrics attendance systems. Implementing this modern-day workforce tracking and attendance management system, like what’s offered by SecurAX, helps you plug payroll leakages, increases efficiency, streamlines operations and gets work done better.