Managing employee time and attendance is a critical challenge for HR and operations leaders, especially when teams are mobile or spread across multiple worksites. Geofencing time tracking is gaining attention in service-based industries as a way to improve accuracy and maintain compliance.
If you oversee field teams in landscaping, construction, home health, delivery, or retail operations, you’ve likely faced issues such as inaccurate punches, time fraud, and limited visibility into employee work hours. Geofencing time tracking offers a way to address these challenges with location-aware tools designed to support mobile timekeeping for field teams.
One often-cited study by the American Payroll Association found that time theft costs employers up to 7 percent of gross payroll, which can amount to thousands of dollars per employee annually.
How Does Geofencing Work?
Geofencing time tracking uses location data from mobile devices to create a virtual perimeter around a job site. These digital boundaries are set up using GPS coordinates through a mobile time clock app. When employees enter or exit the perimeter, they can clock in or out depending on their location.
This method is especially useful in industries like construction, landscaping, delivery services, home healthcare, and retail, where work happens across multiple sites. It provides structure and consistency in places where traditional time clocks are not practical.
According to Robert Half, in Q1 2025, 4 in 10 Jobs allowed some amount of remote work, making location-based time tracking a valuable tool for many businesses.
How Geofencing Helps Employers
Time tracking with geofencing offers several benefits for businesses that manage distributed teams:
- Improved time punch accuracy by preventing off-site clock-ins
- Reduced time theft and buddy punching
- Easier job costing and project tracking with location-specific data
- Better compliance with labor laws through consistent records
- Fewer payroll errors due to automated logging of hours
These operational improvements lead to more predictable labor costs and reduce administrative overhead for managers and HR teams.
Inova’s Approach: Built-In Flexibility and Trust
Inova HCM offers Time and Labor tools that help businesses manage timekeeping, time-off requests, approvals, overtime, pay rules, scheduling, and reporting. Geofencing is a built-in capability that adds even more control and efficiency.
Here is what employers and employees can expect:
- Precise location control: Employers can set exact job site locations using latitude and longitude. There is no need for a physical address. The radius is fully adjustable, and employees must be within one-tenth of a mile to punch in or out. If they are outside the set area, they receive an error message.
- Easy switching between worksites: Employees who move between job locations throughout the day can clock in or out easily. The app automatically shows the closest approved worksites within range for fast selection.
- Offline punching: Even without an internet connection, employees can clock in or out. The system still verifies they are within the allowed radius. Once they regain signal, their time data is synced automatically.
- Increased data insights: Supervisors get real-time visibility into time data through visual dashboards. They can see individual or company-wide punches mapped out clearly. Reports include punch time, source, status, and more.
- Cross-system efficiency and accuracy: All employee time data feeds into a single database. This allows seamless updates across scheduling and payroll tools, reducing manual entry and helping avoid errors.
- Mobile app convenience: With the mobile app, employees can manage their time from their own devices. Employers maintain oversight and control through geofencing while providing flexibility to teams. It’s simple for them and secure for you!
Respecting Employee Privacy
Introducing any form of location-based tracking must be handled with care. Employees often ask:
- Am I being tracked outside of work hours?
- Is this running on my personal phone?
- Who can see my location data?
These concerns are valid. Inova’s geofencing solution addresses them directly. Tracking only happens during scheduled hours and within a defined radius. Location data is used solely to validate punches, not to monitor personal movement.
Employers should share this clearly and ensure employees know when and how location data is used. Trust must be built through transparency and clear policies.
Legal and Compliance Considerations for Employers
Labor laws around location tracking vary by state. Some require written consent for GPS tracking, especially on personal devices. Others permit it as long as the data is used solely for business purposes.
To stay aligned with legal and ethical best practices:
- Track only during work hours
- Use company devices where possible
- Document employee consent
- Be transparent about what data is collected and why
Failing to do so can expose companies to legal disputes and financial penalties. According to the U.S. Department of Labor, wage and hour violations cost businesses more than $322 million in back wages in a single year.
Best Practices for Rolling Out Location-Based Time Tracking
Launching geofencing time tracking is more than a technical rollout; it’s a cultural shift. To ensure adoption and avoid pushbacks, it’s important to create a thoughtful rollout plan that puts employees at ease and sets clear expectations.
- Write a clear, accessible time tracking policy: Outline how geofencing works, when and where tracking happens, what data is collected, and how it will be used. Avoid technical jargon. Keep it honest, respectful, and easy to understand.
- Use company-owned or optional BYOD devices: If possible, offer company-provided devices for time tracking. If you use a bring-your-own-device (BYOD) approach, give employees the option to opt in and provide guidance on data use, app permissions, and how tracking is limited to working hours.
- Provide employees with visibility into their own time logs: Employees should be able to see when and where they punched in or out. This transparency builds confidence in the system and allows them to catch and report discrepancies early.
- Offer training and support as new tools roll out: Provide training sessions, FAQ documents, and support channels. Make it easy for employees to ask questions or troubleshoot on the go.
By combining policy, transparency, and support, you reduce resistance and build trust.
Geofencing Time Tracking Works for Everyone
Geofencing time tracking offers a practical solution for organizations with mobile or distributed teams. It brings structure to timekeeping, reduces errors, and helps ensure compliance. At the same time, it requires thoughtful implementation that respects employee privacy.
Inova HCM provides a location-aware time tracking solution designed to balance accuracy with ease of use. With built-in geofencing capabilities, a user-friendly mobile app, and a centralized platform that connects time, payroll, and HR, businesses can simplify workforce management without losing trust or control.
Whether managing five employees or five hundred across multiple worksites, Inova’s time and labor tools help teams stay organized and compliant while supporting everyday operations. For HR and operations leaders ready to improve accountability without adding complexity, Inova HCM offers a clear and reliable path forward.
