Still using pen and paper? Have you considered how much manual timekeeping costs a business?
1. Employee Time Theft
Paper time card systems can be exploited in a number of ways from hours padding to buddy punching. Some large employers who switch to an automated system are surprised by the drop in employee hours the very first pay period. Even if you notice just a small reduction, this advantage will compound, quickly paying for the cost of adopting an advanced yet affordable automated system like TimeWorksPlus.
2. Inaccurate or Insufficient Records
Without reliable employee hours data, it is not easy to make informed decisions about human resource allocation. This, in turn, cuts down on productivity.
3. Unnecessary Admin Costs
With pen and paper time and attendance systems, your admin staff spends tedious hours troubleshooting timesheet inaccuracies and missing information, and then manually entering the data into the payroll system. When your HR staff can process payroll in minutes, they are free to work on company initiatives that elevate employee productivity and loyalty.
4. Increased Overtime
Pen and paper timekeeping systems don’t have built-in warnings to inform supervisors when associates are approaching or have exceeded their authorized hours. The larger your business, the more last-minute overtime costs you.
5. Higher Employee Turnover
Inaccurate timekeeping and restricted access to basic information contribute to employee frustration and higher turnover. Many employers don’t realize how pricey it is to replace associates.
Numerous studies have established that it costs about 20% of annual salary to replace a staff member making less than 50k a year and the costs increase with higher paid employees.* Do the math: for an associate making $30,000 a year, that would be $6,000.
Automated timekeeping systems allow employees to manage their time cards and monitor PTO, vacation, and other accruals without having to go through a manager or the HR department. When team members are empowered, they feel better about their jobs which triggers increased productivity.
*Heather Boushey and Sarah Jane Glynn, “There Are Significant Business Costs to Replacing Employees,” Center for American Progress, November 16, 2012, https://www.americanprogress.org/issues/economy/reports/2012/11/16/44464/there-are-significant-business-costs-to-replacing-employees/, accessed March 31, 2017