Benefits of Using Time Tracking Software
As your business grows, the need for advanced time tracking software increases. Today’s employees expect to readily access their pay information at any time and place. Time tracking programs can compile this information for them quickly and concisely. The days of turning in weekly paper time sheets have been replaced with new methods of clocking in and out that benefit both the employer and the employee.
As the employer, you want to make sure any new program you implement is cost effective and benefits your company. Time tracking software is one of the least expensive payroll components available, and it reaps the biggest rewards in both time and money savings.
1. Transfers Responsibility
With a traditional time card system, a supervisor would compile time sheets for every employee. This task involved noting when they arrived, took lunch, and left for the day. If a supervisor had several employees, this simple task could take a considerable amount of his or her day. With software that tracks time, this responsibility shifts to each individual.
Employees clock in when they arrive at work at either a central location or their office computer. Then they clock out for lunch and the end of the day. The system automatically relays this data to the supervisor, payroll department, and other interested parties. Managers still view timecards and approve or deny changes to employees’ schedules via the information hub.
2. Streamlines Payroll
Under the old system, managers would turn in time cards for each employee either daily or weekly. A payroll clerk would then sit down and manually enter each period into the payroll system A time program allows time for all employees to be imported with a few button clicks. Automating this function eliminates the time spent gathering and entering employees time.
Human error accounts for most payroll mistakes. The manager may not write clearly, and the payroll clerk has to track him down to find out the accurate time. A number may be entered incorrectly and affect payment. Employees have no way of knowing until they receive their checks. Then time is wasted tracking down and fixing the error. This software can improve the payroll department by systematizing this function and eliminating mistakes.
3. Accurate Reporting
Time tracking software ensures all employees are clocking in and out according to the same timepiece. Managers may use the clock on the wall, their wristwatch, or computer clock to write in a time. Also, with up to the minute reporting, management can check an employee’s time quickly using a variety of reports. Managers can see who is clocked in, who is close to overtime, and who has used all of their vacation time in a manner of seconds.
Digital systems also encourage staff honesty. Within the older system, employees regularly took advantage of loopholes, such as clocking in for each other. In the new system, managers easily supervise schedules and ensure this does not happen.
Benefits for Employees
Any program that benefits employees directly profits the company. Companies with happier employees boast higher retention rates and productivity. Payroll matters are probably the number one factor in determining employees’ attitude toward their company.
1. Access to Data
With the invention of the Internet, people expect to have any information they want within a matter of seconds. Their time information is no different. Programs that track time allow them to view their information in real time. This data includes Vacation, Sick, or PTO time, previous hours worked, and schedules.
By allowing employees access to this material directly, you greatly reduce requests to managers or the payroll department. This fact allows upper management to spend their time where it is needed most, supervising! Employees may also use the software to make requests such as schedule changes, shift swaps, or time off. By using the program in this way, you lessen the number of unnecessary meetings and free both staff and management.
2. Less Payroll Errors
We touched on the benefits of accurate reporting earlier. However, the other side of the coin benefits employees as well as employers. Since employees can see their time worked, they can accurately prepare for their paycheck.
For some, this may mean budgeting or requesting additional hours. They can also report necessary changes to the payroll department quickly and check to see when they are fixed. On payday, they will not be surprised with less pay because they forgot to clock in one morning! The average American lives paycheck to paycheck and becomes greatly upset when something is not quite right.
Time tracking software benefits all parties involved, employers, employees, and even their families. It transfers the responsibility from management to each employee, allows employees to access their data independently, and reduces errors. In addition, it simplifies the payroll process and helps hold employees accountable.