Manually tracking and entering your employees’ timekeeping could be costing your business. Manual entries take time, create a broader room for error and are difficult to manage in hybrid and remote work environments. Consider these factors and consider if upgrading your timekeeping solution.
Employee Time Theft – Paper timecard systems can be exploited in a number of ways from hours padding to “buddy punching,” which is a term to describe a co-worker who clocks in and/or out for someone else. Some large employers who switch to an automated system are surprised by the drop in employee hours the very first pay period. Even if you notice just a small reduction, this advantage will compound, quickly paying for the cost of adopting an advanced yet cost-effective automated timekeeping system.
Inaccurate or Insufficient Records – Without reliable employee hours data, it is hard to make informed decisions about human resource allocation. This, in turn, reduces productivity.
Unnecessary Administration Costs – With pen and paper time and attendance systems, your administrative staff spends tedious hours troubleshooting timesheet inaccuracies and missing information, and then manually entering the data into the payroll system. When your HR staff can submit payroll in minutes, they are free to work on company initiatives that increase employee productivity and loyalty.
Increased Overtime – Manual time and attendance systems don’t have built-in notifications to inform managers when employees are approaching or have exceeded their authorized hours. The larger your organization, the more unplanned overtime costs you.
Higher Employee Turnover – Inaccurate timekeeping and restricted access to basic information contribute to employee frustration and higher turnover. Many employers don’t realize how costly it is to replace team members.
Numerous studies have demonstrated that it costs about 20% of annual salary to replace a staff member making less than 50k a year and the costs increase with higher paid employees. For a team member making $30,000 a year, that would be $6,000.
Automated time and attendance tracking allow associates to handle their timecards and monitor PTO, vacation, and other accruals without having to go through a supervisor or the HR department. When staff members are empowered, they feel better about their jobs which leads to increased productivity.
Let’s Talk! Our payroll professionals are happy to help evaluate your current timekeeping system and make recommendation for new solutions. Thank you to our Partner Swipeclock for contributing content to this article.
For the latest updates, follow us on LinkedIn, Facebook, Twitter, YouTube, Instagram and TikTok for even more business tips and news.
*Southland Data Processing, Inc. (“SDP”) is not a law firm. This article is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other SDP materials does not create an attorney-client relationship. SDP is not responsible for any inadvertent errors that may occur in the publishing process.