The more time you spend on manual payroll processes, the chances for making mistakes increases. Deciphering cryptic notes and comments, applying overtime rules and calculating how many hours your employees work should not be left to chance.
In such cases, human error is inevitable, which will end up costing you a tremendous amount of time and money. Adopting an employee time punch clock platform eliminates errors that causes delays in payroll and underpaid employees.
Let’s take a look at the numerous ways using a time clock system will benefit your company.
Ease Administrative Costs
Paper timecard systems require manual input that carry costs such as underpayments, over payments and a full-time payroll administrator.
Additionally, you must calculate the cost of having frustrated employees when they realize their paycheck is short. Too many occurrences of this might lead to a decrease in performance and morale. Some employees might even quit.
One of the first things you will notice with this modern update is the financial burden lifted from administrative costs associated with processing payroll. Whenever an employee clocks in, their time automatically updates in the system.
From that point, it is just a matter of uploading the data to an outsourced payroll processing company. If this function is managed in-house, your payroll administrator is not encumbered with collecting timecards each pay period.
Better Accuracy with Time Clocks
Generally, employees will record the hours they work during a shift at the end of their workday. Some may even wait until the final day of a pay period. Either habit is not a good one because this requires recording time from memory.
Estimating the number of hours worked is not an accurate way of ensuring employees are paid for actual time worked. Just like you do not want to underpay employees, your labor costs are not helped by overpayments.
Using an electronic time punch system, employees are paid for actual time since the system records the time they arrive and the time they leave.
Security Features Eliminate Time Theft
It is estimated that buddy punching can cost at least 5% of an employer’s total payroll costs. That is too much to pay towards letting employees clock in or out for one another.
Advanced employee time systems are designed to ensure accurate identification of who is working and when they arrive or leave.
Incorporating biometric software with your time clock uses personal identification features such as a fingerprint to positively identify who is entering time into the system. You will never get this level of security with a manual timecard.
Align System with Break and Schedule Policies
Rules for schedules, which include break times and lunch times, can be programmed into an electronic time punch system. This helps to ensure employees return from break or lunch at their scheduled time. Managers can receive alerts for time information such as:
- Employees who do not go on scheduled breaks
- Employees who stay on break longer than their allotted time
- Late arrivals
- Early arrivals
- Unscheduled overtime
Real-time updates permits managers to address these issues as they happen rather than waiting until the end of a pay period.
Employees Can Clock in from Different Locations
Many companies operate at more than one location. To keep track of employees’ time with manual processes, they will need to setup a system at each location.
This leaves companies exposed to the possibility of a different system at each location, yet a singular payroll process.
To highlight the benefit of using an employee time punch clock system instead, you can have one system that merges employees’ time from mobile jobs and multiple locations.
Time collected while employees work in the field are captured and available for payroll administrators.
Automatically Calculate Paid Time Categories
How many times has one of your employees received a paycheck that did not include time off in the total? Manually back tracking for paid time separate from work schedules is a timely and costly endeavor.
When you implement an electronic system, you will have an accurate way of tracking paid time for hours worked and paid time not worked. Whether it is sick leave, vacation days or holidays, you can set the parameters and codes to ensure your employees’ time is complete.
For generations, time clocks have been used in workplaces of all sizes and industries. They are useful in helping employers keep track of how much their payroll costs.
The time is now to make the right investment in a time clock program that transforms complex payroll functions into a seamless process.