HRs Most Expensive Mistakes, and How To Cut Costs with Time and Attendance Systems
The human resources department has a wide variety of important responsibilities, many of which are crucial to an organizations bottom line. Because they have so much responsibility, there’s also plenty of room for error. This article outlines six expensive mistakes commonly made by human resources, and how time and attendance systems can help reduce those errors.
1. Failing to recognize exempt from non-exempt employees.
Some employers believe that putting workers on salary will allow them to figure out break periods and pay overtime. In fact, there are certain qualifications an employee must meet in order to be considered exempt.
Employee time tracking software takes the hassle out of calculating breaks and overtime, and ensures that employees are properly classified.
2. Firing workers for being absent
Workers on certain types of leave are protected by local, state, and federal leave. One of the quickest ways for your organization to get sued is to violate leave laws. Time and attendance software with automatic updates ensures your organization meets all leave compliance regulations, cutting costs associated with fines, fees, and legal representation.
3. Failure to keep up with employee certification and training
Employees who are not certified or properly trained may significantly impact productivity, and may violate certain industry regulations. A time and attendance system with HR functionality can be programmed to notify human resources when training and certification is needed.
4. Payroll errors
According to the IRS, about 33% of businesses make payroll errors that cost them billions of dollars per year in penalties. In addition to these penalties, an employer may spend thousands of dollars a year on overpayments. Mitrefinch Time and Attendance imports payroll data directly to payroll software, eliminating errors.
5. Poor record keeping
Policies and procedures govern employee conduct. Keeping track of tardiness and absences can reduce costly lawsuits in the event that someone is fired. Time and attendance software ensures that patterns and problems are accurately identified. In addition, software can be configured to notify administration of upcoming performance reviews and disciplinary hearings, and can let administration know if employee time and attendance practices are outside of company policy.
6. Inadequate hiring process
Hasty hires can result in poor productivity and high turnover. Time attendance software with HR capability allows an organization to keep track of openings as they occur, to track applicants, to store interview notes and recommendations, and to change the status of an applicant to employee.