Are your payroll policies and procedures up-to-date? If you’re still using paper timesheets, you are probably losing a lot of money without realizing it.
In a 2017 report by the National Small Business Association, 45 percent of small to medium-sized businesses use an outside payroll service to prepare their payroll. The report showed that six percent spend more than 10 hours a month on payroll and another 40 percent do payroll for three to 10 hours per month.
Research has shown that large projects completed by field workers (such as construction) typically take 20 percent longer to complete than estimated and can go up to 80 percent over budget.
The findings, reported by McKinsey, show that today’s organizations need to digitize to stay competitive. Relying on pen-and-paper to track time and manage projects has become outdated.
Payroll Inaccuracies Cost You Money
One way that companies are losing money is by using traditional timekeeping policies. These techniques are rife with the potential for human error and abuse.
Not only must your payroll department rely on the accuracy and honesty of your workers, but their information has to be legible.
Timesheet rounding can also be costing you tens of thousands of dollars, depending on the size of your company.
When your payroll department receives these hand-written timesheets, they need to spend time entering (and re-entering) the figures. These entries need to be accurate, too.
Ever heard of The Telephone Game? Participants begin with a phrase and whisper it to the person nearest them. By the time it reaches the last person, it is often different from when it began.
The same can be said for hand-written timesheets.
When these time records pass from worker to supervisor to payroll, the chances of human error increase. In industries where field workers are often exposed to elements, natural occurrences such as rain or chemicals can also damage these paper records.
When that happens, employees will need to redo them from memory. Having to redo a timesheet from memory is sure to result in frequent errors, whether intentional or not.
Another real problem with traditional timekeeping techniques is the potential for buddy punching. This practice affects almost 75 percent of small businesses in America.
What Is Automated Employee Time Tracking?
Automated employee time tracking is using technology to measure an employee’s tasks and hours.
Different platforms offer different types of time clocking. For example, ClockShark offers a mobile time tracking app that employees can use when working by clocking in and out with a simple swipe on their smartphone.
The time tracking technology you choose depends on your company’s needs. Ultimately, it streamlines and simplifies your payroll (and other) procedures and reduces the risks of errors.
Benefits of Time Tracking Technology to Reduce Payroll Errors
Business owners, managers, and supervisors can’t be everywhere, all the time. Having to rely on outdated time clocking procedures is sure to cost you money. The use of employee time tracking technology removes payroll errors in many ways.
1. No Buddy Punching
Buddy punching is a thing of the past when using automated employee time tracking. Since the program is easily downloaded on your employees’ smartphones, the risk of buddy punching is reduced.
With the use of biometric time tracker technology such as facial recognition, it is impossible for workers to punch in or out for one another.
2. Accurate Time Keeping
When you can record the exact time a worker is spending on a task, you know if they are taking too long to perform it. Automated time tracking also eliminates timesheet rounding.
Instead of risking over- or under-paying your employees with timesheet rounding, you are paying for exactly the number of hours they work, to the minute.
3. Correct Time Spent On Tasks
When you send employees to do a task or project, chances are you have a fairly good idea of how long it is supposed to take. Being able to track an employee's time during particular projects or tasks, means you won’t be paying for them to be idle or take unauthorized breaks.
Since employees know they are being monitored in real-time, they are more likely to engage in the job and less likely to procrastinate or become distracted.
Employee time tracking increases accountability in this way so you can make sure you are getting from your employees, what you are paying for.
4. Identify Outdated Policies/Procedures/Equipment
With employee time tracking, you can much more easily find out if your company is using outdated policies or procedures.
For example, if you have an exceptional employee who suddenly starts under-performing, it could be because they are working with a program or piece of equipment that needs to be replaced or repaired.
Real-time tracking helps you identify such things so you can make sure your employees can perform at their best.
5. Speed Up Payroll Processes
With so many hours spent on processing payroll in the traditional way, time tracking technology will reduce the amount of time your payroll department spends on it.
This kind of streamlined process not only reduces the risk of errors but also the amount you pay to payroll personnel for their hours of work. This lets them focus on other administrative tasks.
6. Cut Down On Overtime Costs
Automated employee time tracking allows you to integrate with scheduling. This means you can review hours worked and make schedule changes quickly, easily, and accurately. This way you cut down on unauthorized (or unintended) overtime wages.
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Investing in technology is not just important in today’s global workforce; it is critical to an organization’s success. Employee time tracking technology is one way today’s companies are capitalizing on high-tech in simple, cost-effective ways.
ClockShark’s employee time tracking solutions are created to help you streamline the components of your business that keep you up and running and connected. If you are ready to give technology a try and see how it improves your company’s performance and bottom line, contact us today or sign up for a free trial.