In any industry or business, your most important asset and biggest expenditure is your employees. You will always need employees to continue to keep your business running and growing. For some reason, however, tracking time and attendance of employees is still done manually. Do you really want to be tracking your most important asset in a spreadsheet, an extremely dated procedure? This kind of process can lead to payroll errors, noncompliance and high turnover, and those are just a few issues. There is a better way to protect and maintain your greatest asset. Below we breakdown the five greatest benefits of automate time sheets.
There are a number of mistakes that can be made when tracking employee time on a sheet with pen and paper. First, and unfortunately, there is time theft. When employees are expected to hand in a sheet that they filled out manually including their clock in and clock out times, you may end up seeing some dishonest sheets. Even if an employee didn’t mean to, trying to remember times at the end of the day or week can lead to forgetfulness and inaccurate documentation. Second, when an HR employee goes to manually transfer the timesheets to a payroll system, illegible handwriting can become an issue and the wrong times can get marked. Automating timesheets eliminates accuracy issues because it is all tracked electronically.
- Regulatory Compliance
Federal and state regulations are strict on making sure that every minute worked by an employee is accounted for, especially overtime. You need the ability to quickly look up an employees’ attendance and wages, without flipping through paper stacks. Not having access to find these records can result in costly fines, but automating time sheets makes this easy. You can pull reports on any employee in the system whenever you need it.
- Increased Productivity
Research shows that the average time it takes an HR employee to process payroll takes about 5 hours. Automated time sheets drastically cuts down on that time. Paper processes require employees to fill out the sheets, HR collect the sheets and take them to a supervisor to approve them, HR manually enters the information on all the time sheets into a payroll system and generates a report, and the payroll is processed. In an automated system, the employees will track their time in a web based system, that information is routed to the supervisor for approval and tracked in the payroll system, and then the payroll is processed. Automating time sheets is hands off and much quicker.
Most businesses that begin automating time sheets see a return on investment within the first year. Everything listed above ends up being a cost saving. You eliminate time theft, payroll errors, regulation fines and increased productivity in the HR department gets more done. Indirect savings can be seen with more transparency into your employees work week and whether they are spending their time efficiently.
- Empowered Employees
When employees are able to access records of their time put to work, they are able to take ownership of their work. Automating time sheets also gives them easy access to PTO accrued and other accruals, instead of HR having to field these questions daily. When employees feel more in control of this information, they are happier at work and are more engaged.