Biometrics has always made it to all the lists of ‘Next Big Thing to Watch Out’ for decades and rightly so! Gone are the days when biometrics were only known for authentication purposes. Today, biometrics have ushered in a new era of access control and workforce management. It plays a significant role in not only strengthening security but also in streamlining operational efficiency and mitigating the repercussions of minimum wage hikes for businesses. As economies evolve and labor costs rise, many companies will have to take measures to balance their financial health and maintain a productive workforce. With the looming rise in the minimum wage, organizations will have to navigate and adjust to the increase in operational costs, and technological innovations like biometrics play a pivotal role in addressing such challenges.
Let’s imagine a scenario – A warehouse in Ontario with 1000 employees who work for 40 hours a week now will get an increase in the minimum wage from $15.50 to $16.55 CAD per hour. This increase of $1.05 CAD will cost the company about 2 million per year without considering the overtime costs. Add to these cases of time theft, buddy punching, unauthorized overtime, and payroll errors. This will exert financial pressure on businesses, especially the ones operating on tight profit margins.
Enter advanced biometrics – Biometric solutions like face recognition or fingerprint when integrated into workforce management systems can facilitate streamlined operations, improve accountability, and enhance overall productivity. Antiquated time and attendance clock systems, logbooks, punch card machines, and daily timesheets are swiftly becoming a thing of the past. This departure from manual, paper-based methods offer a myriad of benefits heralding a new era of productivity for businesses of all sizes. The benefits of biometrics have a direct impact on payroll management, reducing the risk of overpayments and saving organizations significant resources.
Allow us to introduce you to some of the ways in which biometric solutions can revolutionize the way you manage your day-to-day workplace operations fostering efficiency and accountability.
Accurate Time and Attendance Tracking: Biometrics ensures precise tracking of employee hours eliminating proxy attendance, unauthorized overtime, and intentional and unintentional time theft. With advanced modalities like face recognition and fingerprint, chances of buddy punching are also eliminated. By paying for the actual work hours of the employee, businesses can reduce labor costs, thus making time and attendance tracking essential to cost management.
Reduced Administrative Burdens: Integration of biometric solutions with HR management systems can substantially reduce the administrative burden and minimize human errors associated with manual data entry. Such integrations can handle various aspects of employee management, reduce payroll discrepancies, boost employee trust, and prevent conflicts arising from incorrect wage calculations.
Immediate ROI and Long-term Cost Savings: Let’s consider another scenario: A warehouse in Ontario with 200 employees who work for 250 working days a year now get an increased wage of $16.55 CAD per employee per hour. Assuming the daily lost time of 1 hour per employee, for a company with 200 employees this adds up to a significant preventable loss of $830,000 CAD annually. However, by implementing advanced biometric solutions, keeping in mind their initial investment (amortized over 3 years), and assuming 10% of the workforce clock inaccurately, this annual loss can be transformed into year-over-year savings of over $740,000+ CAD. This clearly demonstrates the long-term benefits and cost-efficiency these technologies can bring to businesses.
Touchless Technology: Embracing touchless technology is crucial in our current times as it promotes health and safety by reducing the use of frequently touched surfaces. Advanced biometric systems utilize face recognition, iris scanning, or mobile credentials to prevent the spread of diseases and in turn, enhance productivity and maximize employee uptime.
Scalability and Adaptability: As your site grows, expands, and diversifies, biometric solutions will seamlessly incorporate any changes without causing disruptions or requiring extensive reconfiguration. It will easily accommodate new employees and enroll them into the system ensuring that your security system remains up to date.
Real-time Monitoring: Advanced biometric systems can provide real-time monitoring via intuitive dashboards, email notifications, and SMS text messages. This enables management to track employee movement within the premises, helping identify patterns and optimize resource allocation during peak hours.
Today’s evolving economic context requires effective and efficient solutions that combine security and operational efficiency, placing biometrics firmly in the spotlight. Now more than ever, it is crucial for organizations to invest in biometric solutions to mitigate the financial impact of minimum wage hikes while ensuring productivity, security, and efficiency. With capabilities like efficient workforce management, accurate time and attendance tracking, and optimized resource allocation, biometric solutions contribute to a cost-effective operational framework.
For more information about our cutting-edge solutions, contact our team today.
sales@invixium.com
