Employees are one of the key resources of an organization and the most crucial source of future innovation and business growth. Conversely, in most companies, labor costs are the biggest category of total business expenses. That’s why keeping track of employee time and attendance can have a huge impact on the bottom line.
Inaccurate time tracking can lead to costly regulatory compliance issues. Without precise and reliable time data captured from the workforce and transferred to the HRM system, errors are likely to happen. These can result in non-compliance, payroll errors, reduced employee morale, and a decline in the bottom line.
Keeping track of employee time is argued to be the heart of any business. An advanced cloud-based time tracking system that meets your business needs can help remove the negative aspects of inaccurate and unreliable timekeeping. Maintaining accurate time and attendance data makes it simple to manage employee costs, enhance payroll accuracy, reduce HR burden, and save time.
Here, we present the top six benefits of automated time tracking and how it helps improve the bottom line.
Most companies depend on a manual time tracking process – using a pen and paper. A manual process that relies on pen and paper can be easily altered, and inaccurate hours entered by employees can result in time theft. Employees can also make mistakes on timesheets, especially when they can’t remember details days after.
There are numerous ways to minimize data inaccuracies and chances for time theft. Electronic data can be captured by employees clocking in/out over a secure web browser through a biometric time clock, or a mobile device. The data gathered from these systems is directly transferred to the time and attendance system in real-time.
The ability to quickly get accurate records of employee worked hours and time off taken is more crucial today than ever before. The time and attendance data tracked through an automated system can help ensure your company complies with labor rules regarding proof of attendance.
Time tracking is one of the most significant aspects of record-keeping compliance. Federal and state compensation and hour laws need employees to be paid for every minute they work, including overtime.
Stability in employee time tracking and the ability to instantly pull reports and review each employee’s time and attendance data from the time management system can be the best solution to protect your company whenever there is an audit.
Better Insight into Employee Costs
An automated system enhances data accuracy and makes it easy to run custom reports on the available information. Without this capability, a company would struggle to get a clear picture of employee costs.
With an advanced time tracking system, you can gain insight into exactly how much overtime employees have worked, time off used, whether some departments have higher rates of absence than normal and other critical concerns. A complete understanding of your organization’s labor costs will help you make better workforce decisions and accurately project future employee costs.
An advanced time tracking system can provide significant investment returns. You can realize a return on investment (ROI) quite quickly, often within a year of implementing a time management system.
Automating time and attendance management results in continuous cost savings, such as elimination of fraud and overtime costs, reduction in payroll errors, and saved wages from increased productivity.
Less Burden on HR Professionals and A More Empowered Workforce
Maintaining paper records for each of your employees can be both time consuming and inefficient. Manual time tracking becomes tedious when data is required for other departments. Ideally, access to time and attendance data should be shared securely across the company.
Advanced capability such as Employee Self-Service (ESS) provides an easy way for employees to manage their time, enabling them to take complete ownership of their time and attendance data. It provides the ability to track time off accruals andaccess their time off balances without having to reach out to the HR team.
Employees feel more empowered when they can access their data through an advanced solution. Employee Self-Service features offer shared control between employees and their employer which in turn improves relationships that can positively affect a company’s culture and contributes to a higher level of workforce engagement.
Advanced Data Integrations
By integrating all parts of your HR management with an automated system, you minimize the number of times employees have to interact with the data and prevent any possible risk of human error.
HRM integration adds efficiency by easily and securely sharing data from one department of the company to another without manual data entry and related errors that occur. By digitally transferring employment, time and attendance, and compensation data per employee through an online system for each step in the time tracking through payroll, you enhance process efficiency, data accuracy, and cost savings.
Automated employee time tracking eliminates errors and enhances efficiency. A time and attendance management system ensures compliance with labor laws about proof of attendance, salary, and work-hour regulations.
Adopting an automated software solution makes a great sense for businesses because it will offer many benefits at a pretty low cost. The return on investment from an automated solution is quick and measurable.