importance of timekeepingEconomic focus can be more critical for the start-up, or small business. Operating efficiently is imperative to ensure costs are controlled. Payroll Vault takes the time to perform proper due diligence – ensuring our franchisees that each vendor is vetted and approved to provide exemplary service to their clients.

As we approach year-end, Payroll Vault is focusing on the value our partners bring, and how they play an active role in helping your clients maintain compliance. In October, we are discussing the importance of timekeeping solutions, and the savings the proper solution can present.

A timekeeping solution is oftentimes overlooked, and viewed as “it can wait”. Many offices continue to use manual timekeeping, or allow employees to approximate their time each pay period. Either scenario is possible cause for error and additional work.

There are three areas that employers are looking to regulate upon implementing a timekeeping system: compliance risk, labor cost, and an effective and comprehensive HR management strategy.

Compliance is important, and tricky to maintain in the ever-changing world of legislation. By utilizing a timekeeping system, compliance is automatically improved with federal, state, and local laws and regulations. By minimizing noncompliance, stiff penalties and legal costs are evaded. For example, the Fair Labor Standards Act that mandates how employers must pay employees for time worked as well as time off has made manually tracking time increasingly time-consuming and tedious.

Labor costs are easily monitored and controlled when using a reliable timekeeping solution. By operating transparently, management can reduce or increase operation costs by controlling how much is spent on labor. It is also a valuable tool in supporting the HR departments overtime controls that have been set in place to further decrease over spending. Employees rounding punches or estimating time leads to inaccuracy, and therefore increased expenses.

Human Resources management can focus more on building strategies that increase productivity, maintain better control and oversight, and proactively prevent potential payroll miscalculations and overpayments to abate losses. Furthermore, a timekeeping system will help easily manage hours worked, time off accruals, overtime hours and schedules.

A timekeeping solution is invaluable to organizations. The proper solution will aid in keeping your client in compliance, while monitoring labors costs and eliminating waste. How much is this worth to your client?