Data Collection

Gathering performance data for timely and appropriate management decisions.

Everyone's heard about GiGo - Garbage in - Garbage out. It's the primary adage of information technology. If you want the right answers to your management questions about the optimization and utilization of your people assets, you must begin with accurate data collection. And, when it comes to gathering data about people and performance, it all comes down to tools.

The most common employee data collection challenges are:

1. Attendance
2. Tardiness
3. Absenteeism
4. Time theft
5. Overtime

Data collection challenges can have immediate and far-reaching effects upon employee performance and company profitability. These five challenges can be remedied by the use of appropriately placed, effectively priced, and properly used data collection devices as part of an overall employee management system. Depending upon the range and scope of your operation, your needs, and your budget constraints, the simplest - but not too simple - data collection will have an immediate positive impact on your bottom line.

Cost - Benefit Ratios

It is hard to estimate the cost of a simple system that does not give you the data you need to manage performance and monitor attendance effectively. Employee abuses of simple, ineffective systems run anywhere from 3% to as much as 10% of total payroll in companies with 25 or more employees.

Are you getting what you're paying for?
Proper data-collection techniques allow you to systematically collect information about your people and about the settings in which they perform on your payroll. The more primitive your collection methods, the greater the opportunities for abuse.

Businesses use various means of employee time collection, ranging from handwritten time sheets, to manual time cards, to analog punch clocks, to fully integrated systems that utilize automation. For many businesses, it is impractical to use only one means of time and attendance data collection. The most sensible means of accurate time/data capture is the use of a combination of different data collection tools as inputs for a coordinated management system. This requires a robust software application that can apply your work rules across a broad spectrum of work situations, job functions, and compensation methods.

Programming in all the variables: location - on-site, off-site, pay rates, job functions, clearances, security, training, and using the proper means of data capture is, for most businesses, quite a daunting task. And, relying upon only one means of data capture - the one offered by equipment manufacturers - can lead to costly errors and ineffective (often biased) employee management.

To address all these challenges, certain techniques and tools - devices for recording time worked and time off - have been developed.

Advantages and disadvantages of various data collection techniques

Technique	Advantages	Drawbacks
Manager written time cards	Better time control	High administration costs Poor accuracy, openness to abuse
Employee written time sheets	Low cost	High administration costs, increased subjectivity and possible bias
Electro-mechanical control	Increased accuracy	Potential employee abuse, subject to calculation errors, loss of overtime
Electronic interpretation management	Virtually eliminates buddy-punching, increased facility security	Potential employee abuse, subject to calculation errors, loss of overtime

An Overview of Time and Attendance Data Collection Techniques

In many organizations, large human resources departments, along with even bigger payroll departments, spend the majority of their time gathering, sorting, calculating, and reporting on all that data. Only about one out of three organizations with 50 or more employees control this data through the use of time and attendance software. We feel that the need for automated time and attendance systems is obvious, simply to handle the huge number of data collection equipment types as shown below:

Data Collection Equipment Types

1. Stationary Devices
1. TCP/IP enabled readers, located at primary entrance ways are the ideal devices for time and attendance tracking.
1. CP/IP connected readers can be polled individually or multiple readers can report to a static IP address for easy data exchange.
2. Badge readers have proven reliability. They ensure user acceptance and compatibility with almost all types of computer environments. Badge readers are appropriate for both access control and time and attendance.
   A low cost ID badge reader or key chain tag reader is the most popular transaction gathering electronic method.
2. Biometrics
1. The hand punch is the most common biometric device for employee identification in time and attendance.
1. Purpose is to validate identity and time stamp sign-in - sign-out transaction
2. The fingerprint reader has been used as positive ID for three generations. In conjunction with an employee entered PIN the fingerprint reader provides absolute control, but has its limitations. So does the:
3. Iris scanner. This innovative technology identifies people by the unique patterns in the iris of the human eye. Although more expensive than more traditional systems, the iris scan achieves increased identification and security levels, which are not necessary for most commercial applications, though imperative for high security needs.
4. Controlling access through a door or gate is often accomplished through the use of proximity readers. In many cases, these proximity readers simply provide access. Some, however, can be connected to doors that also serve as time and attendance portals.
3. Mobile - Portable Devices
1. Laptops, PDAs, Cell phones, and other electronic equipment carried by individuals can be used as data entry points for your employee management system.

What can be accomplished through the utilization of a comprehensive, robust time and attendance system that uses the right data collection equipment types for your needs?

• Reduce and/or eliminate costly payroll preparation
• Eliminate time calculation errors
• Prevent "buddy punching"
• Use existing computers (PCs) as time clocks for punching
• Collect data over the phone or by a wireless connection
• Collect shop floor data for job costing
• Capture hours from staffs based in multiple, remote facilities
• Capture time automatically or have employees input on a keypad
• Verify identity by biometric measures for security reasons
• Track physical movement through plant facilities
• Capture data via portable devices used by highly mobile employees
• Fairly and accurately apply your work rules in multiple locations across jurisdictions
• Broaden scope of company culture to compete globally and locally

Summary

Data collection, its methods and equipment, must achieve the company goals of increased performance through the effective and efficient management of its people assets. This involves: clearly defined company objectives, good hiring practices, well thought-out work rules, and a systematic approach to applying work rules to the achievement of company goals.

Data collection systems range from the most primitive paper and pencil time sheets to advanced, state-of-the-art biometric devices and computer programs. The most primitive systems cost the least to implement, capture the least amount of data, and are seldom of any use to planning. The most complex systems cost the most and are often the most difficult to install and use.

Clearly, a balance must be achieved that will enable a busy manager to have the simplest - but not too simple - system that will enable them to achieve a cost-effective solution to their people management challenges.

Selecting a vendor with a long history of successful implementation of employee management systems and the capability of bridging your company's culture with the technology it needs to succeed is the first step in achieving your goals. The second step is to choose a system that will grow and adapt as your company grows and adapts to the rapidly changing economy.