Traditional time tracking methods required employees to write down their working hours every day. They needed to notate the amount of time spent on a specific job or task or when they took a break. Not only was this time tracking method inefficient and often inaccurate, but it was costly.
No matter what your business needs are, online time clock software allows your workers to record their working hours much more easily, accurately, and with minimal oversight. Time clock software can significantly lower your labor and operating costs by simplifying the payroll process, ensuring attendance compliance, and making job costing data easily accessible and understandable.
With that being said, here are the top three major money-saving benefits that come with using modern time clock software.
Payroll processing is not always a fun job. Especially when you have to make sure that each employee’s work hours are accurately tracked and they are paid for their time worked. Not to mention, there could be compliance issues if you don’t accurately track overtime.
Additionally, if employees aren’t paid on time or in the incorrect amount, this can lead to dissatisfaction in the workplace. Not only does this impact employee morale, but it can affect your profit margins if customer interactions are less than favorable.
Studies have shown that an employee will seek new employment if two of their paychecks are wrong. So it is essential as a business owner to guarantee that your employees are paid on time every week and in the correct amount. Otherwise, you will end up spending more of your labor costs on having to hire and re-train a new employee.
The good news is that online employee time tracking software takes all employee data, including punch in and out times, breaks, and time off, and can generate reports based on that information. This information can then be sent to an accountant or synced with a payroll provider for quick and accurate payroll processing.
Ensure Attendance Compliance
An online timecard system allows you to manage your employees’ work hours and attendance efficiently. This includes being able to track unpaid lunches, breaks, personal time off, and sick leave. Your time clock solution should indicate and separately track time spent on unpaid activities. This way, the employee is not accidentally paid for that time, and you can get a good idea of how they’re spending their day.
Time clock software makes it easy to track any unpaid leave taken. It will typically outline how many days an employee has taken off on any given week. If you find that an employee is taking off more days then the average employee, you can address the issue immediately and get to the root cause.
Timesheet management solutions that also come with a scheduling component allow you to quickly determine how frequently an employee is punching in early or late and punching out early or late. An employee may regularly be punching time early to get more overtime. If not appropriately addressed, this can quickly get out of hand and eat into your labor costs.
Using time and attendance software allows you to get a bird’s-eye view of your employees’ attendance and can take action if they are not adhering to your attendance policy.
Manage Job Costs
Most time clock solutions allow you to track time spent on a specific job, project, or customer. This information can be hugely beneficial as it will enable you to determine where you may be spending too much or too little money. You can use the knowledge gained to shuffle around your budget to meet the demands of your business.
Time clock software offers several different reporting options to break down your job costing in greater detail. For example, if you want to know the weekly average cost for a job, you can run a report on that job over a weekly time frame. You can compare that information from one week to the next to determine future job costs.
Not only is job costing beneficial to your business, but it is also helpful to your customers. If you provide a service, being able to break down the cost of that service in a legible manner is incredibly important to customers. Customers are much more likely to stick with a business if they feel they are transparent and forthcoming about the costs of their service. This will lead to higher customer satisfaction and, in turn, higher profits.
If you are looking to save some money on your time tracking process, then time clock software is the best route. It can take what was once complicated and manual and turn it into a smooth and automated process.