A New Kind of Timesheet Brings Biometrics to Main Street Neal Katz Vice President Count Me In, LLC...

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 [email protected]

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

In Most BusinessesIn Most Businesses

• 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






Estimated Time Estimated Time Per Pay Period Per Pay Period Per EmployeePer Employee

22--3 minutes3 minutes

1 minute1 minute







Estimated Time Estimated Time Per Pay Period Per Pay Period Per EmployeePer Employee


1 minute1 minute


~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.)

ROI

Ease of Use

Robust Solution

Flexible Business Rules

Type of Entry/Input Device

Integration with Complementary Applications

Integration with Complementary Solutions

Choosing Time and Choosing Time and Attendance SolutionsAttendance Solutions

A New Kind of Timesheet Brings Biometrics to Main Street Neal Katz Vice President Count Me In, LLC...

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