Post on 02-Jan-2016
A New Kind of TimesheetA New Kind of TimesheetBrings Biometrics to Main StreetBrings Biometrics to Main Street
Neal Katz
Vice President
Count Me In, LLC
Mt. Prospect, IL
800-958-8779 neal@countmeinllc.com
The Small Business MarketThe Small Business Market
• 16 Million Small Businesses
• Primarily Retail and Service Industries
• Most Employ 1-19 Workers• Many Hourly
• Most Expect to Grow
Services
Retail
Child Care
Medical Manufacturing
• Sales• Customer
Service• Collections
The Business MindThe Business MindImportant
• Customer Satisfaction
• Doing the Job
• Working with Employees
• Making $$$
Satisfying
• Taxes• Organizing• Filing• HR• Accounting• Payroll
Time Consuming
•PayrollPayroll•PayrollPayroll
First, There Were TimesheetsFirst, There Were Timesheets
• Employees Recorded Their Hours on Paper Timesheets
• When did they fill them out?• On Entering and Leaving? Daily? Weekly?
• Sheets Handed to Supervisors Regularly (Daily, Weekly, Etc.)
• Managers review, approve and forward
• HR/Accounting Enters Data into Payroll System
• Paper Production, Distribution and Collection
• Manual Analysis and Reconciliation
• Entries Entered Manually for Processing• Errors Likely: Complaints only on Underpayment
• Entry Accuracy Depends on Employees’ Honesty
Timesheets:Timesheets:Problems and CostsProblems and Costs
Estimated Estimated Time Time
Per Pay Per Pay Period Per Period Per EmployeeEmployee
2-3 minutes2-3 minutes
1 minute1 minute
7-10 minutes7-10 minutes
Costs of TimesheetsCosts of Timesheets
• Paper Production, Distribution and Collection
• Manual Analysis and Reconciliation
• Entries Entered Manually for Processing• Errors Likely: Complaints only on Underpayment
• Entry Accuracy Depends on Employees’ Honesty
Timesheets:Timesheets:Problems and CostsProblems and Costs
Estimated Time Estimated Time Per Pay Period Per Pay Period Per EmployeePer Employee
22--3 minutes3 minutes
1 minute1 minute
77--10 minutes10 minutes
• Paper Production, Distribution and Collection
• Manual Analysis and Reconciliation
• Entries Entered Manually for Processing• Errors Likely: Complaints only on Underpayment
• Entry Accuracy Depends on Employees’ Honesty
Timesheets:Timesheets:Problems and CostsProblems and Costs
Estimated Time Estimated Time Per Pay Period Per Pay Period Per EmployeePer Employee
22--3 minutes3 minutes
1 minute1 minute
77--10 minutes10 minutes
~12 minutes per employee ~12 minutes per employee per periodper period
26 periods26 periods
15 hourly employees15 hourly employees
4680/minutes=78 4680/minutes=78 hours/yearhours/year
@$15/hour @$15/hour
Annual Cost = $1170 Annual Cost = $1170
Timesheet Distribution and Entry, with No Calculations and No Added Value = $1,170
Timesheet Distribution and Entry, with No Calculations and No Added Value = $1,170
Remember Punching the Remember Punching the Time Clock? Time Clock?
Recorded units of time worked
• Basic tool of businesses with hourly employees
• Each employee “punches” in and out
• Date and Time recorded on paper cards
• Payroll/Accounting processes manual
• Periodic Computation of:• Hours• Wages • Schedule Adherence
Time Clocks Increased Time Clocks Increased Timekeeping AccuracyTimekeeping Accuracy
• Time was recorded accurately
• Times were consistent and standardized
• Collection of “timecards” centralized
• All processes except timekeepingremained manual
Next: Electronic Time ClockNext: Electronic Time Clock• Replaced Timecards and Timesheets
• Employees Identified by Badge, PINS, and other IDs
• Time Entered Following Identification
• Time Worked is Calculated at the Terminal• Terminal “Dumps” Data to Printer (or PC)
Computerization: BenefitsComputerization: Benefits
• Paperwork Reduction • Accuracy of Timekeeping• Elimination of Data Entry• Accuracy of Calculation• Reduced Buddy Punching
Additional BenefitsAdditional Benefits
• Reduced Check Adjustments and Reissues
• Fewer HR Inquiries
• Single Data Entry; Multiple Purposes• Timekeeping• Payroll• Human Resources (Benefits/Time Off)• Project Management/Project Costing
Electronics Lack Intelligence:Electronics Lack Intelligence:
Is 3 hours and 13 mins. really 3.15?
Is 3 hours and 13 mins. really 3.15?
Was she LATE or not?
Was she LATE or not?
Importance of Business RulesImportance of Business Rules
How to Define Regular and Overtime Hours?How to Define Regular and Overtime Hours?What is Weekend? Holiday? Split Shift?What is Weekend? Holiday? Split Shift?Did the Employee Work as Scheduled?Did the Employee Work as Scheduled?
Electronic Time Clocks Electronic Time Clocks Lack Flexibility and BreadthLack Flexibility and Breadth
• Business Rules for Time and Attendance are “Hard Coded”• Limited Flexibility
• Payroll Periods: • Weekly, Bi-Weekly, Semi-Monthly & Monthly
• Specific Shifts/Schedules
• Limited Overtime Periods: Daily or Weekly
• Limited Holiday Recognition
Is Millie Millie?Is Millie Millie?
What you What you havehave or what you or what you knowknow can be shared, lost, or stolencan be shared, lost, or stolen
Costs of Buddy Punching and Costs of Buddy Punching and Employee Time TheftEmployee Time Theft
$$
EmployeesEmployees
Primary Sources of Fraud and Primary Sources of Fraud and Errors in TimekeepingErrors in Timekeeping
• Buddy Punching
• Errors in Data Entry
• Errors in Rule Interpretation
Biometrics Allow Business to Biometrics Allow Business to Discard the Time CardDiscard the Time Card
• System Recognizes and/or Verifies the Individual
• Automatically Captures Entry/Exit Times
• Replaces Manual Timesheets and Electronic Timecards
Verification vs. IdentificationVerification vs. Identification
Identity VerificationIdentity Verification
Q: “Is this who s/he claims to be?”
A: Yes / No
1:1
Requires Prompt (e.g., PIN, card)
Identity VerificationIdentity Verification
Q: “Is this who s/he claims to be?”
A: Yes / No
1:1
Requires Prompt (e.g., PIN, card)
Identification Identification
Q: “Who is this person?”
A: Albert Einstein
1:N or 1:Many Requires Differentiation
Identification Identification
Q: “Who is this person?”
A: Albert Einstein
1:N or 1:Many Requires Differentiation
Four Key Steps in RecognitionFour Key Steps in Recognition
Capture - a physical or behavioral sample is captured during enrollment
Extraction - unique data is extracted from the sample and a template is created
Comparison/Match - the template is compared with a new sample and the system determines whether there is a match.
Storage - the system stores template data only on the server, workstation, etc.
Courtesy: I/O Software, Inc
Biometrics Assures Identities :Biometrics Assures Identities :Enrollment processEnrollment process
Image Capture Image Processing
RAW TEMPLATEDATABASE
StoredFeature Extraction 1-0-1-1-00-0-1-1-01-1-1-0-0
1-0-1-1-00-0-1-1-01-1-1-0-0
Biometrics Assures Identities :Biometrics Assures Identities :Authentication processAuthentication process
Image Processing
TEMPLATEDATABASE
Image Capture
RAW
Search and Compare
Feature Extraction
1-0-1-1-00-0-1-1-01-1-1-0-0
1-0-1-1-00-0-1-1-01-1-1-0-0
1-0-1-1-00-0-1-1-01-1-1-0-0
1-0-1-1-00-0-1-1-01-1-1-0-0
1-0-1-1-00-0-1-1-01-1-1-0-0
1-0-1-1-00-0-1-1-01-1-1-0-0
1-0-1-1-00-0-1-1-01-1-1-0-0
1-0-1-1-00-0-1-1-01-1-1-0-0
1-0-1-0-01-0-1-1-01-0-1-1-0
1-0-1-0-01-0-1-1-01-0-1-1-0
1-0-1-0-00-0-1-1-01-0-0-1-0
1-0-1-0-00-0-1-1-01-0-0-1-0
1-0-1-1-00-0-1-1-01-1-1-0-0
1-0-1-1-00-0-1-1-01-1-1-0-0
1-1-0-1-00-1-0-1-01-1-1-0-0
1-1-0-1-00-1-0-1-01-1-1-0-0
1-0-0-1-0-1-0-1-1-0-1-0-1-0-1-
1-0-0-1-0-1-0-1-1-0-1-0-1-0-1-
1-0-1-1-0-0-0-1-1-0-1-1-1-0-0-
1-0-1-1-0-0-0-1-1-0-1-1-1-0-0- 1-0-1-1-0-
0-1-1-0-11-1-0-1 -0-
1-0-1-1-0-0-1-1-0-11-1-0-1 -0-
1-0-1-1-0-0-0-1-1-0-1-1-1-0-0-
1-0-1-1-0-0-0-1-1-0-1-1-1-0-0-
1-0-1-1-0-0-0-1-1-0-1-1-1-0-0-
Selecting Biometric Technologies Selecting Biometric Technologies Involves TradeoffsInvolves Tradeoffs
Convenient Intrusive
FingerprintHand
IrisRetina
VoiceHandwriting
Face
Complex
Simple
Return on InvestmentReturn on Investment(Time and Attendance)(Time and Attendance)
• Managerial/Clerical Savings• Reconciliation/Auditing• Data Entry
• Time Theft/Human Error• Buddy Punching• Time Entry Fraud
Return on InvestmentReturn on InvestmentReconciliation and Auditing SavingsReconciliation and Auditing Savings
FACTOR QUANTITY
Number of employees 10 employees
Minutes saved reconciling & auditing each timesheet
10 minutes/ timesheet
Minutes saved per pay period 100 minutes/period
Weeks per pay period 2 weeks
Department head/auditor's hourly rate $30.00/hr
Department head/auditor's labor savings per pay period
$50.00/pay period
Department head/auditor’s annual labor savings
$1,300/yr
Return on InvestmentReturn on InvestmentData Entry SavingsData Entry Savings
FACTOR QUANTITY
Average hours/ employee/week
40 Hrs
Number of employees 10 Employees
Total hours per week 400 Hrs
Employee’s average hourly rate
$25/Hr
Total weekly payroll $10,000/week
Estimated human error factor (1-3%)
2%
Weekly savings $200/Wk= $10,400/Yr
Return on InvestmentReturn on Investment Reduced "Time Theft" Reduced "Time Theft"
FACTOR QUANTITY
Average weekly "time theft" 4.08 hours
Number of employees 10
Total "theft" per pay period 40.80
Average hourly rate $25/hour
Total wages recaptured/weekly
$1,020/week
Total wages recaptured $53,040/year
Return on InvestmentReturn on Investment(Time and Attendance)(Time and Attendance)
Managerial/Clerical Savings
Reconciliation/Auditing $ 1,300
Data Entry $10,400
Time Theft/Human Error $53,040
Buddy Punching ----
Time Entry Fraud ----
Total Estimated SavingsTotal Estimated Savings $64,740$64,740
Based on 10 Employee Company, $25/hr. Avg. Salary
Additional BenefitsAdditional Benefits• Complementary Business Solutions
• Integration of Identification/Verification Engine(s) and• Time and Attendance
• Access Control and Security (Child Care, etc.)
• Membership Validation (Health Clubs, etc.)
• Complementary Business Applications• Integration of Output Data with
• Accounting/HR (QuickBooks, ACCPAC, etc.)
• Payroll Processing (ADP, Paychex, etc.)