The IDENTITY keword is used to generate a key which can be used in combination with the PRIMARY KEY constraint to get a technical key. Such keys are technical, they are used to link table records. They should have no other meaning (such as a sort order). SQL Server does not guarantee the generated IDs to be consecutive. They do guarantee however that you get them in order. (So you might get 1, 2, 4, ..., but never 1, 4, 2, ...)
Here is the documentation for IDENTITY: https://msdn.microsoft.com/de-de/library/ms186775.aspx.
Personally I don't like it to be guaranteed that the generated IDs are in order. A technical ID is supposed to have no meaning other then offering a reference to a record. You can rely on the order, but if order is information you are interested in, you should store that information in my opinion (in form of a timestamp for example).
If you want to have a number telling you that a record is the fifth or sixteenth or whatever record in order, you can get always get that number on the fly using the ROW_NUMBER function. So there is no need to generate and store such consecutive value (which could also be quite troublesome when it comes to concurrent transactions on the table). Here is how to get that number:
select
row_number() over(order by id),
employeeid,
punch_time,
deviceid
from mytable;
Having said all this; it should never be necessary to change an ID. It is a sign for inappropriate table design, if you feel that need.