Sticking with manual time tracking? Find out how it might be costing you.
There are many options when it comes to keeping track of employee time and attendance, and some time tracking methods are exponentially better than others. However, many businesses are still keeping track of employee time using manual methods (pen and paper), which can be inefficient and costly to your business.
Here are four ways manual time tracking can cost you money:
Human Error
Humans make mistakes—it’s a fact of life. Calculating payroll can be one of the most daunting tasks because of the amount of granular detail involved. The probability of errors increases exponentially if you are tracking a large workforce or pulling data from a variety of sources. Manually calculating payroll introduces the risk of overpaying employees. And let’s face it—it’s not often that an employee would volunteer that they have been overpaid, which results in your business losing money.
Employee Time Theft
Buddy punching refers to an employee clocking in or out for another employee. It’s a portion of a greater time theft issue, which costs U.S. employers an estimated $400 billion a year. For example, if each of your employees “steals” just five minutes a day by leaving early, arriving late, or taking extended lunches, that adds up to over 20 hours of un-worked time per employee that you're paying for every year! And that estimate is below the norm. Experts estimate that the average employee pockets closer to an hour of unproductive work time each day. How much could time theft be costing you?
Compliance Claims
What happens if an employee argues that a manger changed their timesheet prior to processing payroll and sues the company for unpaid wages? The same could happen with unpaid overtime, incorrect pay claims, missed meal break disputes and workers’ compensation claims. We all know how much litigation can cost a company. Without any digital paper trails or electronic time reports, an employer becomes more vulnerable to lawsuits and fines.
Payroll Administration
When using a manual time tracking method, payroll administration can be a time consuming and expensive process. Often companies need to pay salaries for multiple employees to assemble payroll. Payroll managers spend long hours laboriously collecting and organizing wage information, integrating pay rules and distributing paychecks. Automating this process helps companies save both time and money.
Sick of losing time and money using a manual time tracking method? EPAY Systems can help you save labor costs, stay compliant and keep you in control of your workforce. Learn more about our cloud-based time and labor management system.