subject: Cloud-based Time Clocks Save On Hardware & Implementation Time [print this page] Automated employee time clocks have been proven to be extremely effective in reducing operational costs in both the private and public sectors. With the accurate recording of employee punch ins and punch outs, organizations know they are paying employees for the exact hours worked. In addition, automated work hour reporting makes it easier for companies to process payroll. However, there can be huge differences in the performance of these systems based on whether they are on-premise, server-based delivery systems, or cloud-based SaaS delivery systems.
Luzerne County in Pennsylvania is a prime example of just how much difference there is in these two systems, especially when it comes to cost, implementation and performance. In 2010, the County purchased an on-premise time and attendance system and licensed software for $412,000. Now, some two years later, the County is still struggling to implement the system and costs continue to run.
As County manager, Robert Lawton, was quoted saying, "Implementing a new electronic time recording system and converting it - not just recording the presence or absence of employees - but converting that data into information for our payroll system poses a great challenge" I think that in the understandable zeal to improve perceived accountability, we may have gotten ahead of ourselves with respect to how difficult implementation was going to be."
Lawton couldn"t be more accurate. The County has more than 1,500 employees. If you take into account the recurring maintenance fees for this many employees, the total cost of their time management system likely shoots well beyond $650,000.
Luzerne County"s challenges clearly illustrate the shortcomings of server based, licensed time and attendance software. If the county had opted for a cloud based time management system instead, they could have potentially saved hundreds of thousands of dollars, and the whole system could have been implemented at each of its locations within days. Below are just a few reasons why a cloud-based system may have worked better for Luzerne County.
Hardware Requirements
Licensed software needs to be installed locally, on company-owned servers. This, of course, adds to the cost of the system itself, and overall operational costs. In the case of Luzerne County, there are multiple offices that require multiple servers "" all demanding space, power, maintenance and monitoring. Online time management systems are cloud-based and allow multiple users to access a utility from any device with a browser or Internet connection. This type of software delivery eliminates the need of any hardware, including servers, thereby saving a substantial amount of money and physical office space.
Implementation Process
In-house time management systems often involve a great deal of preparation and implementation. First, you"ll need to acquire new servers (if you do not have any), then install the actual software, (which can take long hours and sometimes days), and then you have to train your employees on the new system. Add the cost of IT supervision and ongoing maintenance to this price, and your expenses can run out of control in no time. This is exactly what appears to have happened in Luzerne County. In comparison, cloud-based systems do not need in-house servers, and a single system can be up and running in just a few hours.
