I’ve often heard small business owners claim that time and attendance systems are too expensive for their organization. My response is always, while it may require a small investment initially, the payoff is well worth it. In fact, using an automated time tracking system can improve your bottom line.
There are three ways that a time and attendance system can save you money:
Paper Time Cards. Not only are paper time cards a waste to the environment, precious time and resources are required to initiate, manage and monitor a paper-based system. This all adds up to room for human error. A paper timesheet can be lost, errors can be made when transferring the data to payroll and storage fees can be costly to meet the retention requirements. With a web-based system, time clock, or mobile time entry, employees can access their time and attendance system anywhere they have access to the internet. In addition, the time entry is reportable, auditable and automated through workflows that can be implemented.- Manual Calculations. It is estimated that 40% of businesses in the United States are calculating employees’ hours worked manually without the aid of an automated time-keeping system. This task alone is very time consuming. But more importantly, manual calculations come with their own set of risks associated with human error, potentially resulting in paying employees incorrectly. With an automated system, rules can be put in place for ensuring consistency and time saving compliance.
- Compliance. When managing payroll, there are many laws and regulations you need to be aware of. For example, the US Department of Labor, Wage and Hour laws and the FLSA laws are just a few. According to the US Department of Labor, seven out of ten companies fail to comply with wage and hour regulations. Here are some of the most common compliance areas where companies fall short:
- Inaccurate timekeeping
- Misclassification of employees
- Lack of maintenance of historical payroll data
By switching to a web-based time and attendance system, companies small and large will save time and prevent headaches. Payroll records can be easily accessed with a time and attendance system. By replacing a manual, paper-based time-keeping system with an automated system, you can not only save time but also reduce your risks.
About the Author: April Kennedy, Implementation Manager, IntegreatHR Technologies
April has nearly 25 years of experience in the HR Technology industry. She manages the transition of our new clients to new technology systems. Her role involves working closely with clients to help implement technology and to create and conduct training.
Topics: Time and Attendance
