Operating efficiently is imperative to ensure costs are controlled. Economic focus can be more critical for the start-up, or small business. 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.
Human Resources is in place to enforce pay and policy, but are they watching the time clock? When an organization implements a timekeeping system, they are actively working to reduce errors; i.e. payroll inflation, overtime, compliance matters, and wasted labor costs. Having employees actually punching in and out is a basic yet profound way to protect yourself as a business owner.
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, you automatically improve compliance with federal, state, and local laws and regulations. By minimizing noncompliance, you are avoiding stiff penalties and legal costs. 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 expense.
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 your company. It will aid in keeping your company in compliance, eliminate labors costs and waste, and effectively manage and uphold company standards. How much is this worth to your organization?