5 Reasons You Need an Employee Time Clock

A majority of small business owners initially take care of all the executive responsibilities for their business on their own. This can consist of accounting, payroll, scheduling, inventory control, and customer service.  This is a lot for one person to handle.

With only a few employees, manually writing downtime records on a sheet of paper may have been sufficient for your business at one point.  However, with growth comes a need for change. If you are not already using a time clock or online employee scheduling app of some sort, now is the time to upgrade to one now.  Below are just a few reasons why an employee time clock is a necessity in the workplace:

1. Time Clocks Improve Payroll Accuracy

Correctly gathering employee hours plays directly into payroll accuracy – which obviously is a huge benefit for both the employer and the employee. Studies have shown that automating employee time records can reduce payroll processing costs by up to 80%, primarily by reducing the margin for human error.   

The Fair Labor Standards Act (FLSA) leaves the onus on employers to make sure employees are properly compensated for the number of hours they work, meaning issues with employee punch times are ultimately your responsibility. You have to keep paid time accurate, while motivating employees to make punch card management as smooth as possible for all parties involved. Improving payroll accuracy begins with the very first clock in at the start of an employees work schedule.

Manual time tracking leaves employees loath to be accurate with their work hours, occasionally resorting to buddy punching or time theft. Making use of an automated employee attendance & time clock system keeps them more honest, especially if they don’t even have to think about it when they punch in.

Most systems integrate with direct deposit payroll systems very seamlessly. Direct deposit helps save money by reducing the cost of printing paper checks, processing fees, and postage needed to mail checks. These cost reductions add up over time.

2. Time Clocks Are More Impartial

Most employees monitor the amount of time spent at work, as well as that of their fellow employees. Employees want to know that they are being treated impartially when they clock in or clock out. By using an attendance software or scheduling software, an employer can reduce some of the issues that employees might view as unfair.

An employee can be confident that the absenteeism of other employees is being noted and recorded.  They do not have to worry that someone else is being paid for work that they did not perform. They know that every minute of their time is accurately recorded as well.

As unfair as it might sound, sometimes personal feelings may influence management’s accuracy for a specific employee.  An employee can be assured that the automated time tracking system merely records time, without allowing emotions to affect anything.  Especially for legal reasons, this is very important; it ensures that your business or management cannot be accused of favoritism or inaccuracy.

3. Time Clocks Improve Productivity

The time it takes management to track and calculate employee hours manually can add up – costing you money.  Management must take the time to gather up time cards or sheets, verify the accuracy, and enter all the data into the systems.  This process can take up to several hours each pay period. However, with high-quality time tracking solutions, this process can take only minutes instead.  This frees up management to focus on other more important matters.

Human error is also eliminated by the use of automated time management systems. Employees can be confident they will be getting paid for all the time they work, and management will not have to spend time trying to catch errors and correct them.  No more wasting valuable time filling out timesheets. Payroll becomes less time-consuming and more accurate, translating into increased productivity in several departments. 

4. Time Clocks Monitor Attendance Issues

In 2015 the U.S. Department of Labor reported that an estimated 3% of America’s workforce was absent on any given day.  This can cost employers over 20% of their payroll costs. Mobile employee scheduling apps and digital time clocks can let you quickly access employee information to notice attendance issues before they become a more significant problem (i.e., constant tardiness, regular absences on specific days).

If an employee is absent or tardy, they are not actively working on the task they are supposed to be are not being productive.  Even unnecessary or unapproved breaks can cause interruptions during the workday, and interruptions cost money. These interruptions add up, resulting in company loss.

5. Time Clocks Boost Employee Morale

High employee morale results in employees having a good attitude, which then translates into increased productivity at work. Employees know that they will receive accurate pay for their work. Resentment can grow among employees if a few are noticed to be taking advantage of breaks or being paid for the time they did not work. This helps everyone stay in a positive mood. A pleasant workplace is a productive workplace.

It is clear to see how having a time clock can improve both your business and employee happiness. There are many time tracking software available, so make sure to do your homework and find one that fits the needs of your business.