If you’re in charge of running a business, you may be tempted to cut costs by relying on spreadsheets and manual practices to track employee time and process payroll. However, doing so is likely to produce the opposite effect.
Multiple studies have shown that companies who process payroll manually have error rates from 0.5 – 2 percent.
Assuming a 0.5 percent error rate…
A company that has 100 employees, and pays them $49,764/year (U.S. national median per the Bureau of Labor Statistics), will lose $24,882 a year in payroll mistakes!
A well-implemented time and attendance system saves an organization money, and the administrator from the headaches that come along with manual processes.
Beyond the cost-savings related to human error, here are other reasons to invest in an automated time and attendance solution:
Deter Time Theft
There are many ways employees can steal time at work. The practice of buddy punching, where one employee clocks in for another employee, is common among companies that use traditional time clocks.
Then there are employees who take advantage by coming in late, leaving early, or taking extended breaks. While these minutes may seem insignificant, they add up over time. An automated time and attendance solution is your best defense against padded timesheets and inaccuracies.
Recently enacted wage and hour laws have made the ability to calculate and document hours worked by employees more critical than ever. According to federal law, employers are required to retain specific records containing timekeeping data, and payroll information. Cloud-based time and attendance solutions means that important records are readily available, should the employer be called upon to produce them.
Reduce Overtime Hours Worked
Overtime is often a result of poor scheduling. Outdated and incorrect data can lead to poor utilization of employee time. With an automated time and attendance solution this can be prevented by setting alerts to identify when an employee is close to approaching overtime eligibility.
Even managers with the best intentions can’t keep tabs on the comings and goings of the employees who report to them 100% of the time. Workers who consistently get to work on time and take the allotted time for lunch may resent those who take advantage yet fly under the radar without being caught. Automated timekeeping solutions ensure all employees are treated fairly when it comes to time worked.
Boost Employee Engagement
Compensation is one of the key drivers of employee engagement so it’s important to get it right. In fact, 49% of U.S. workers will leave a job after experiencing just two problems with their paychecks. Not only do time and attendance solutions increase the accuracy of your payroll, integrated solutions provide other benefits that boost engagement. Mobile solutions provide employees with the ease and convenience of clocking in from their smartphone or desktop.
Still not convinced? If you need help determining what is best for your organization, download our Guide for Choosing a Payroll and Time & Attendance Solution.