Insights Into Time Registration: What Every Payroll Manager Should Know

Accurate time registration is required under EU law – and it’s key to effective payroll management. It can directly improve labor cost control, ensure compliance regulation, and provide critical insights for future improvement.

In this article, we’ll explore in-depth the benefits of having accurate time and attendance data – and effective ways to capture it.

Why Accurate Time Registration is Critical

Controlling Labor Costs with Precise Workforce Management Data

Every minute of recorded work directly impacts payroll, project costs, and overall budget control. Inaccurate time records, whether caused by human error, manual processes, or misuse, can gradually inflate these costs without detection. Even small discrepancies, such as employees rounding up their start times or stretching break periods can add up over time.

Robust time registration practices help reduce costs by making attendance data more accurate, visible, and auditable. When staff use consistent, reliable methods, such as secure web-based clocking systems or hardware terminals that are connected to your workforce management tools, it becomes much harder for errors or oversights to go unnoticed.

Misuse such as time theft can’t be prevented 100%, but accurate time registration goes beyond catching misuse – it’s about creating accountability, streamlining payroll, and giving organizations tighter control over one of their biggest cost areas.

Time and Attendance Data as a Strategic Asset

A comprehensive workforce management solution treats time and attendance data as a strategic asset – because it is. This data isn’t simply payroll input; it’s far more valuable when used to inform operational decisions.

Accurate records of hours worked provide a clear picture of how labor is being used across teams, shifts, and locations, offering complete visibility across your entire workforce. This gives managers the confidence to make more informed decisions about employee scheduling, overtime, and resource planning based on real-time workforce data.

Historical attendance trends can highlight recurring issues like late starts, unplanned absences, or specific times of day or week when coverage tends to fall short. Managers can then adjust shift patterns, rebalance workloads, or redistribute tasks to prevent undesired effects on operational efficiency or compliance.

Activity-Based Tracking

Precise time registration enables activity-based tracking, where you monitor how much time is being spent on specific tasks, projects or clients. This level of granularity supports better budgeting and resource allocation, more accurate invoicing, and generates data that can provide actionable insights to boost productivity.

You might compare hours worked with data on units produced, service levels, or customer satisfaction scores. This helps identify which shifts, teams or individuals are driving the most value, and where there could be inefficiencies or support needs.

Transparency and Trust

A robust time tracking protocol builds trust and accountability. From an employee’s perspective, proper time tracking ensures peace of mind; workers can trust that their overtime, breaks, and leave are logged and paid for correctly, reducing disputes and boosting employee engagement, as they feel that their time is valued.

Payroll Accuracy

Accurate attendance management and tracking also reduces costly payroll errors and administrative workload. Manual timesheets or outdated systems often lead to mistakes (i.e., missed entries, calculation errors or misapplied overtime rates) which then require time-consuming corrections.

In fact, the American Payroll Association states that human error in time card preparation is from 1-8%, and 10.5% of total payroll processing time is spent on correcting errors.

With the right tracking approach, HR professionals can avoid spending hours fixing avoidable errors.

Regulatory Compliance

Staying compliant with labor laws is a primary concern for payroll managers, and makes time registration accuracy absolutely critical. Most labor regulations (working time laws, overtime rules, rest break requirements, etc.) rely on proper records of employees’ hours. In Europe, this has become even more pronounced after a 2019 EU Court of Justice ruling that obligates employers to implement “objective, reliable and accessible” systems for recording working time, as per the EU Working Time Directive.

Failing to keep accurate records for compliance monitoring can lead to hefty consequences. For example, under Dutch law, if an employer lacks proper time records, courts may side with an employee’s claims of unpaid overtime. This happened in a case where Uber had to pay €72,000 in overtime to one individual because they couldn’t disprove the hours claimed.

Government Penalties

Non-compliance with working time tracking requirements can also lead to government penalties if the lack of proper record keeping leads to claims of violations like underpayment or insufficient rest periods.

These penalties vary by country; for example, businesses in the Netherlands can face fines up to EUR 10,000 per employee for not complying with working hours rules, and this amount can increase with repeated violations. There are additional rules in some sectors, such as road transport.

How Workforce Planning Software and Manage-By-Exception Prevents Violations

Modern time tracking tools actually help prevent compliance issues before they happen when they’re connected with advanced workforce management systems. For example, MANUS WFM has a management-by-exception approach, where managers are alerted to any deviations and don’t have to manually check everything. This enables quick corrective action, which is far better than discovering compliance breaches once it’s too late.

Fair Treatment of Staff

Finally, compliance isn’t just about avoiding penalties; it’s also about fair treatment of staff and supporting work-life balance. Proper tracking ensures employees don’t work excessive overtime that could lead to burnout, and that they receive all entitled rest and leave.

Integrating Clocking Devices and Modern WFM Systems

Achieving the accuracy and visibility we’ve discussed is made much easier by today’s web-based time clocks, hardware clocking devices, and integrated workforce management systems.

What is a Web Clock?

A web clock is essentially an online portal (accessible via browser or mobile devices) where employees clock in/out and record breaks or specific job activities. These digital clocks can track time for both on-site and remote workforce management scenarios as they can be used anywhere – whether an employee is at a retail store, on a factory floor with a tablet, on the road with a smartphone, or working from home.

Many web clocks support different identification methods – staff might log in with a secure PIN or scan an RFID badge or QR code.

The data is then passed to WFM software. From there, time evaluation takes place and payroll files are generated.

What About Hardware Clocking Devices?

Not all workplaces are suited to web clocks, like retail or industrial settings where staff don’t work at computers. In these cases, hardware clocking devices can be mounted at convenient locations so that staff can sign in and out easily. These devices also support the different identification methods mentioned above, and activity based tracking.

Our partner, Datafox, supplies a large range of clocking devices suitable for different environments – for example, industrial grade devices are convenient for use with conductive and non-conductive gloves.

Time Registration Best Practices

Here are a few best practices to guide payroll managers when implementing or improving a time registration system.

Engage and Educate Employees and Managers

To ensure the successful adoption of new technology, help employees understand how they benefit from it. Also ensure attendance tracking policies are clear and well-documented.

Train managers to use the system not just to approve hours, but to analyze the data in light of business goals and act on the insights revealed. For example, you might encourage them to link time data with task management and productivity outcomes.

Find User-Friendly Clocking Devices

The easier it is for employees to clock in and out, the more consistent and accurate your data will be. Web clocks should be accessible on any device, with features like offline mode so workers in areas with a poor internet connection can still clock in and out.

Use Time Data to Support Employee Wellbeing

Time registration isn’t just about cost control and compliance; it can also support healthier workloads. Look out for patterns of overworking, inconsistent scheduling or missed rest periods. This can help reduce burnout and improve retention, especially in sectors with high physical or emotional demands.

Review and Refine Periodically

Your time registration setup isn’t a one-off project. Periodically check how well the system is working: Are employees clocking in on time? Are managers reviewing exceptions properly? Are there recurring errors or gaps in coverage?

Use this information to refine clocking methods, adjust rules, or offer additional training. Also check that time tracking methods align with your current operations; what worked six months ago may no longer suit a newly-hybrid team or a changing shift structure.

Conclusion

Cost savings, payroll accuracy, compliance – some of the top benefits of accurate time registration. And when employee time and attendance data is fed into enterprise workforce management software, it becomes a strategic resource, informing decisions on budgeting, staffing needs, and improved workforce productivity. Granular, activity-based tracking supports more precise insights.

Implementing robust tracking processes requires web clocks and/or hardware clocking devices that integrate with a workforce management solution like MANUS WFM. To learn more about our software and its clocking integration options, contact us today.

Manage-by-Exception in Workforce Management Software: How it Boosts Efficiency

Globally, around USD 5 trillion is lost each year to admin. As for Human Resources managers in shift-based workplaces, they’re fighting a constant battle. A battle to coordinate hundreds or thousands of frontline workers across retail stores, warehouses, factories, or call centers – and deal with endless schedules and attendance records in the process.

Manual HR processes force teams to spend hours on repetitive administrative tasks – checking who clocked in, checking if breaks were taken, and checking that scheduled and realized hours align – instead of focusing on strategic planning.

Research has shown that simply having technology in-place isn’t enough to overcome the endless stream of admin. For example, a survey from 2024 revealed that workers (in various roles) are wasting 12.6 hours per week on low- or no-value tasks. That was an increase compared to 2023 – despite increased investment in technology.

The best WFM software is about far more than basic attendance tracking and absence management. It minimizes huge volumes of unnecessary admin through a manage-by-exception approach. This article explores how.

 

The Challenges of Managing a High-Volume, Shift-Based Workforce

Employee Scheduling Complexities

Staff scheduling becomes extremely complex when you have to manage salaried and hourly workers across various shifts, locations, roles and contracts. Peak demand periods, shift swapping and last-minute changes add to the chaos.

Without robust workforce management tools, managers can end up guessing or constantly adjusting schedules, which is inefficient and can be a compliance risk.

Time and Attendance Data Overload

Every shift generates data on clock-ins, clock-outs, breaks, overtime hours, etc., and managers often have to go through all those records to find errors and correct them.

This is tedious and time-consuming, yet necessary to ensure payroll is accurate and labor laws are met. In a workplace with a high volume of shifts to manage, the amount of records makes manual review impractical.

Regulatory Compliance Pressures

Labor regulations add further complexity. And just one violation is a hassle that nobody wants to have to deal with – nor be blamed for.

Managing compliance across a large workforce means constantly checking for any exception that could breach policy; an overwhelming task when you aren’t using automation.

Administrative Burnout

All these repetitive tasks – building schedules, approving routine timesheets, responding to leave requests, fixing missed clock-ins – steal managers’ time.

Most organizations aspire to do more with less, but outdated, manual processes make it hard. Valuable hours that could go toward employee engagement or workforce planning strategy are instead spent checking endless records. This impacts productivity and morale. (In the study mentioned earlier, 41% of respondents were considering leaving their jobs due to the burden of repetitive tasks and the desire to abandon outdated ways of working.)

These challenges highlight the need for a more efficient way to manage the workforce, and this is where manage-by-exception comes in.

 

What Is Manage-by-Exception in Workforce Management Solutions?

Manage-by-exception is a strategy that focuses on identifying and handling cases that deviate from the norm.

In the context of workforce management, it means using WFM software to automatically handle routine, expected events, while alerting managers only to exceptions that fall outside predefined rules or standards.

Instead of micromanaging every detail, managers only need to focus on the exceptional issues that truly need attention.

Key Aspects of Manage-by-Exception in Workforce Planning Software

Automated Monitoring

The workforce management system is configured with the company’s policies and applicable labor laws. It automatically tracks all clocking data, attendance, and schedule adherence. Normal, in-bounds events simply get recorded with no manual oversight needed.

Exception Flags

Whenever something deviates – i.e., an employee clocks in late, misses a shift or exceeds their allowed hours – the system raises an alert. Managers get a notification highlighting those exceptions – and only them.

Managerial Action on Exceptions

Managers then focus their attention on these exceptions and take the necessary action. Their intervention isn’t required for everything that’s running normally.

In essence, the system does the watching and the manager does the problem-solving for the few cases that warrant it.

As well as saving time, this ensures that issues don’t go undetected, as the software is always handling compliance monitoring.

 

Manage-by-Exception and the WFM House

To gain the full benefits of manage-by-exception, you need solid, consistent processes. At MANUS, we use a framework called the WFM House to illustrate this.

The house represents a structured way of organizing labor management practices so that each area – such as time tracking or labor forecasting – is built on a reliable foundation. Only with such a foundation can organizations effectively improve their workforce management capabilities.

Consistency is the cement that runs through each layer of the house, holding it together.

Let’s explore the framework in more detail.

1. The Foundation: Accuracy, Timeliness and Completeness

The base of the WFM House is all about data quality (specifically in time registration). Three aspects to consider are:

• Accuracy: Are employees’ hours logged correctly? Do these records reflect the actual situation and are they in line with regulations and internal policy?
• Timeliness: Are time entries submitted promptly? Does the timing allow for steering and evaluation within a reasonable timeframe?
• Completeness: Has all the necessary data been recorded?

In MANUS WFM – our comprehensive workforce management solution – many different checks take place to ensure the above. However, these standards aren’t enough on their own; consistency is necessary to make sure they’re applied uniformly across every department, shift and location. Otherwise, one team’s data might not match another’s, and that makes reliable decision-making almost impossible.

This consistent, high-quality data is what makes manage-by-exception possible. When your foundation is solid, you can trust that anything the system flags as an exception is truly worth your time.

So how do you ensure consistency? This brings us to the next layer of the WFM House – controllable and enforceable processes.

2. The Lower Pillars: Controllable and Enforceable Processes

With a solid foundation, this next level of the WFM House is about ensuring that your processes are:

• Controllable: Managers must be able to monitor processes and make changes.
• Enforceable: Rules and standards must be clear and actually followed.

Manage-by-exception depends on this. If your workforce data isn’t collected in a standardized, enforceable way, then other errors that are not true deviations could be classed as exceptions. That just creates distraction. But when your processes are under control, you can focus on the real outliers.

3. The Higher Pillars: Balances and Realization

Above the pillars for controllable and enforceable processes are:

• Balances: Is there alignment between key factors such as time, cost and productivity?
• Realization: Are scheduled hours actually being worked?

Here, manage-by-exception ensures you don’t need to inspect every shift. However, you’d want to know if a particular store consistently shows significant gaps between scheduled and worked hours; thanks to the software’s reporting capabilities, these targeted, actionable insights are available.

4. The Roof: Planning, Forecasting and Budgeting

At the top of the WFM House are the strategic goals: planning, forecasting and budgeting. Improvement in these areas relies on everything below being in good order. After all, how could you forecast staffing needs and optimize labor costs without accurate historical data?

MANUS WFM can generate many different reports at each level of the WFM House, helping users maintain consistent processes and start optimizing.

 

More Benefits of Manage-by-Exception

Here are some more advantages to gain from enterprise workforce management software that uses this approach.

Faster Response and Resolution

Since only exceptions are flagged, issues can be dealt with promptly. For example, if someone forgot to clock out, the manager can correct it before it affects payroll.

Error Reduction

Automating standard processes (like approving perfectly accurate clocked hours) means things are done the same way every time. This reduces human error and helps ensure compliance.

Allowing Managers to Focus on High-Value Tasks

With the routine stuff handled, managers can redirect their attention to areas that bring added value – such as enhancing workforce planning strategy, employee engagement or performance management.

 

Conclusion

Configuring workforce management software with your organization’s rules and letting it filter out the routine from the urgent means your teams are always working on the highest-impact issues.

The payoff is greater operational efficiency, fewer errors, better compliance, and a management team that can dedicate time to building a better workplace.

To learn more about how MANUS WFM makes this possible, contact us today to request a demo.