Do Electronic Time Clocks Help Decrease Labor Costs?

Labor cost is perhaps the biggest cost component of any business. On average, labor costs as much as 60 percent of the total operating expenditure of a business. That’s why reducing labor costs is the single most effective change a business can make to increase profit.

Every year, inaccurate time tracking results in an unnecessary increase in labor costs. From buddy-punching to extended paid breaks, all add up to inaccurate reporting of total hours worked.

Electronic time clocks help to overcome this problem and reduce labor costs. Electronic time clocks, unlike manual punch cards, are more efficient to track time and attendance of a global, hybrid workforce accurately to eliminate time theft, improve compliance, and make the workplace better for everyone.

In this blog, we’ll explore how Replicon’s electronic time clock – the CloudClock – can help enterprises track employee time. Replicon CloudClock is an iOS application that is seamlessly unified with Replicon’s Time and Attendance, Client Billing, and Project Costing applications to allow businesses to capture, manage and optimize their employee time, at any time, from anywhere to reduce labor cost.

Electronic Time Clocks Enable Safe Workplace and Eliminate Time Theft

Employees returning to the workspace need a safe way to punch in at arrival, for breaks, meals, and end of shift. Adding to the complexity, organizations need a way to eliminate buddy punching, one of the most common types of time theft where one worker punches the clock on behalf of a late or missing co-worker.

Replicon’s AI-powered self-service capabilities combine cloud-based solutions with touchless employee time clock features like facial recognition and voice commands to eliminate contact with shared surfaces. With Replicon’s CloudClock, businesses can turn any iPad or mobile device into an electronic time clock and immediately start tracking time with photo audit capability to eliminate buddy punching and time theft.

Distinguished Vineyards & Wine Partners (DVWP) staff uses Replicon’s CloudClock to streamline time capture across their diverse workforce. By automating employee clock in/out, and tagging the time record to specific jobs at the different blocks and vineyards, DVWP reduced administrative overheads, improved the accuracy of time/cost allocation of these jobs, managed overtime, and improved scheduling.

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Avoid Manual Time Tracking Errors

A punch-in time usually designates the time when an employee starts being paid. If your report has the type of role that can only be carried out at the worksite, if they punch in before reaching the site, you know their start time is inaccurate. Similarly, if they punch out when they aren’t on-site, they’ll be paid for the time they didn’t work. Furthermore, the American Payroll Association (APA) estimates that having a manual time tracking process introduces human errors that can directly cost organizations 1% – 8% of their payroll. There are multiple points along the time reporting chain for human error. From employees misreporting time to data entry errors logging the time into your payroll system, each instance is another potential of failure that increases your labor costs.

Replicon’s electronic time clock and mobile app come with advanced features like GPS tracking and geofencing to accurately track an employee’s hours and locations. With GPS monitoring and geo-fencing, managers can create virtual boundaries within a specified radius, beyond which employees can’t log in their time. This eliminates the possibility of any extra hours padding before an employee reaches the worksite. Since all the time logs are captured automatically, it eliminates the need for that data entry layer, freeing up that admin resource to do other work or even eliminating those work hours altogether. Either way, your company is saving labor costs.

Minimize Non-compliance Errors

Time and attendance tracking is much more than just monitoring clock-in and clock-out. Your HR or payroll teams need to be on top of all labor laws to ensure compliance and avoid risks. Keeping a global, multi-location business running smoothly requires your organization to comply with every local, regional, national, and international regulation. Otherwise, organizations have to face hefty fines – perhaps, the most overlooked form of labor cost.

Replicon platform provides a built-in compliance library for over 60 countries across the globe and even enables organizations to model specific requirements like premiums or union agreements. This enables your business to function as usual without worrying about staying on top of ever-evolving wage and hour policies. Our proactive monitoring and automatic over-the-air updates ensure minimized risk and adherence to policies everywhere you operate.

“A major driver for choosing Replicon was that it delivered a cloud-based, easy-to-use system that we foresaw as driving strong efficiency, accuracy and scalability improvements in all of our offices and to all of our employees. We knew once the system was in place and everyone became accustomed to using it, that the system would practically run itself in managing all our project-related costs and expenses,” Molly Kinnison, HR Generalist at Ropes Courses. Read the full case study.

Prevent Payroll Mistakes

Accurate time and attendance tracking is at the core of payroll processing. Legislation, collective bargaining agreements, or industry practice may restrict the number of hours an employee can work and what he needs to be paid. So, you need a solution that lets you manage work hours exceptions, validations, and adjustments on one unified platform. For instance, you might want your employees to record 40 hours per week and at least six hours a day. When a timesheet is submitted, the solution must check for these conditions to highlight any discrepancies that can affect the payroll.

Replicon provides a single source truth for time and attendance data that seamlessly integrates with a payroll system to streamline the automatic syncing of data between the systems your organization uses, enabling accurate employee payouts. With our preconfigured global pay rule library, you can apply overtime, meal breaks, and other labor laws without any human intervention. The pay calculations are fully automated and data gets pushed to your desired payroll system for further processing. Since all the data is stored in the cloud, up-to-date information is always available for all verification purposes.

Decrease Labor Costs with Replicon

Replicon provides a comprehensive time and attendance solution that provides supervisors and managers with real-time updates about time entries and time-off submissions. Since this information is real-time instead of after the fact, your organization can manage labor costs better.

From start-up organizations to Fortune 500 companies, Replicon customers experience boosts in productivity, reduced labor costs, decreased revenue leakage, and adherence to labor compliance laws. We support thousands of customers across 70 countries and span the globe with over 500 Replicon employees in the United States, Canada, India, Australia, and the United Kingdom.

Remote or In-House – Now Track Time and Attendance in Real Time, Every Time, Everywhere

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Shree Krupa


Shree Krupa

Shree is content marketing manager at Replicon. She likes to write about technology trends that are shaping the future of the workplace. Replicon provides award-winning products that make it easy to manage your workforce. With complete solution sets for client billing, project costing, and time and attendance management, Replicon enables the capture, administration, and optimization of your most underutilized and important asset: time.

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