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Payroll Automation and Biometrics
By Andrei Kossyrine
© Xpress Software Inc. - All Rights reserved
http://www.xssoftware.com
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Making manufacturing more profitable is not a "one size fits all" solution. This change in thinking and operations is also not accomplished in a single step or procedure change. The following is one of a series of topics designed to enhance the profitability of manufacturing in general.
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In many cutting edge companies today the time clock as we know it is obsolete. At many organizations, instead of filling out or punching time cards, employees can now simply place their hand or thumb on a unit that scans or reads their thumb or handprint. This unit then automatically takes a three-dimensional reading of the size and shape of the employee's hand and verifies the user's identity in less than a second. This new method is one way that companies are streamlining their payroll process while at the same time eliminating the problems of "buddy punching" (someone punching a time card for someone else), and controlling overtime hours as well.
The methodology of this system, while at first it may seem like something from "Star Trek" is relatively simple. Once an employee is "scanned," supervisors or managers can authorize and verify employee time and/or overtime on a local computer. The information generated by this system is always accurate and always updated. The hours can then be sent to a central payroll-processing center via the Internet or stored on a central computer in your human resources department. This process also removes any potential mathematical mistakes when time cards are computed by hand, and the temptation to not impose rules on fellow employees or favorite workers. This could potentially be an issue at companies who have a policy of promoting from within.
As an additional benefit, managers can also receive regular reports with information about individual or collective employee time and attendance. This could be a valuable resource in itself. For example, you would be able to generate a daily report indicating which employees are close to getting overtime hours for a particular week and rearrange schedules if necessary. Or, you could see which employees still have unused vacation time for the year and send them a memorandum instructing them to use their time or risk loosing it.
In addition to the accuracy that this system allows for, using biometrics with an automatic payroll system can save a company literally hundreds of hours of labor per year. The reporting options available by using this system also carries over to the tax implications. There software of these systems allow you to keep track of employee sick and vacation days, wage or salary increases, and to correctly determine federal and state withholding information. This also reduces need to keep paper files on each employee, such as holding on to timecards from years past.
Once you have the vital information stored electronically, you have the option of actually computing the information in house or by outsourcing the entire payroll process. Each option has its pros and cons, for a smaller company it may be worthwhile to pay for the entire payroll services, while a larger company may have the departments already in place to accommodate a digital payroll system.
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Since 1996 Xpress Software Inc. has provided
technical assistance in lean manufacturing methods,
computer systems and business process automation
to maximize manufacturing profits.
Visit its website www.xssoftware.com or contact
Andrei Kossyrine at andrei@xssoftware.com.
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