Biometric Time Clocks: 5 Important Benefits to Consider

Biometric time clock systems have the potential to save time and money — and make it easier to track hourly employees.

Mobile and cloud-based biometric time clock systems allow workers to log in from home or remote locations via their smartphones or other devices. And AI-powered systems are helping companies analyze employee work patterns to optimize productivity.

But does that mean you should switch to using a biometric time clock system?

What Are Biometric Time Clocks?

Biometric time clocks rely on measurements of physical characteristics such as fingerprints, facial shape, iris or eye shape, or even a vocal sample to log an employee into the timekeeping system and record their attendance.

The scan or sample matches an existing record in the database, ensuring that only your employees have access to the system – if the scan doesn’t match an existing record, access will be denied.

The most common type of biometric time clock is a fingerprint scanner. The device scans a fingerprint and matches it to a stored image in its database. Thanks to AI and machine learning technologies, the accuracy of biometric scans has improved.

With hybrid work environments and flexible hours becoming the norm, you may be considering a biometric time clock solution. Here are five key benefits you should know:

1. Reducing Time Theft

Even though your business may not be using an actual paper punch card anymore, employees are still able to commit time theft by “buddy punching.”

Buddy punching occurs when an employee clocks a co-worker in when they’re running late or isn’t coming in. This person will likely expect the buddy to return the favor.

A Human Resource and Leadership Journal research study determined that the average employer loses $1,560 per employee each year just from buddy punching.

This practice can also reduce employee morale. Think about how you might feel if you knew a co-worker who was late every day but was never reprimanded because a friend was clocking them in. Meanwhile, you’re on time or early and it goes unnoticed. 

But since every person’s fingerprint is unique, biometric time clocks can effectively eliminate time theft from your list of worries.

2. Boosting Security

The same type of biometric terminal can be used to secure doors and restricted areas without the need for key fobs or access codes. You also know that no one can give out their passcode to others to access the time clock or restricted areas, ensuring only you have access to the data.

Biometrics are unique. A person can never change their fingerprints, so this type of identifier is difficult, if not impossible, to fake. While nothing is 100% foolproof, biometrics are secure credentials – especially when paired with a passcode.  

Plus, employers also don’t have to worry about employees losing their key fobs.

3. Making It Easier to Clock In

Clocking in should always be as easy as possible — and with a biometric time clock, it is. There are no passwords to remember or reset. The person’s data is easily recorded. They are marked as present, and depending on the option you choose, their hours will be reported right to your payroll system.

Additionally, employees can simply scan a finger and move on. They don’t have to worry about keeping a card or a key to clock in.

4. Saving Time

Manual time tracking takes a long time, but since employees’ hours are reported right into the payroll system, timekeeping becomes an automated process. It can take HR and payroll departments quite a while to process payroll if they have to keep going back to correct errors. Automating at least part of the process will save time and energy so you can focus on bigger things.

Worried about keeping time for people working from home? Modern biometric time clocks can be used on a mobile device and accessed online from anywhere.

5. Improving Accuracy

Because the software automatically compiles data from the time clock terminal, there’s less room for human error. There’s no need to sort through timesheets or manually enter time into a spreadsheet – where errors can hide.

Many biometric systems offer seamless integration with advanced workforce management systems, enabling more sophisticated payroll tracking, reporting and real-time updates.

Additionally, you can easily tell if an employee must leave early or arrives late without having to make manual updates.

Important Legal Considerations

Before implementing a biometric time clock, you need to know if there are related state data privacy laws that you must follow.

For example, in 2023, Little Caesars offered to pay nearly $7 million to settle a class-action lawsuit that accused the pizza chain of violating the Illinois Biometric Information Privacy Act by using a timekeeping system that scanned employees’ fingerprints without their consent.

Employers in New York cannot require employees to use a fingerprint to clock in and out, nor can they take adverse action against employees who refuse to do so. Employers can, however, use a fingerprint biometric time clock on a voluntary basis as long as it doesn’t scan the surface of the hand or fingers.

Arkansas, Colorado, Texas and Washington also have specific rules governing biometric data. And businesses in the Golden State must be careful not to run afoul of the biometrics section in the California Consumer Privacy Act.

On Jan. 25, 2025, New Jersey will have a new privacy protection law, which includes a section on biometric data, but it doesn’t give employees the right to sue their employer.

There’s even legislation at the local level: The city of Portland, Oregon, has banned certain uses of facial recognition scans.

It’s also important to note that the EEOC successfully sued an employer for religious discrimination over its use of biometrics.

Should You Make the Switch?

If it doesn’t put you at risk of noncompliance, biometrics can decrease time theft, save HR and payroll departments’ time and ensure the most accurate data.

It’s important to have a top-notch, secure system that safely manages your data. Biometric data is something that can’t be changed if compromised, so keep the safety of your employees in mind when you’re shopping for a new system. You’ll want to ask a potential vendor partner about multi-factor authentication and/or encryption protocols to avoid compromising sensitive employee information.