There are small business owners who don’t like the idea of using employee time clock software. They may think their business is not big enough to warrant using one. Or perhaps they envision an old traditional punch clock and a long line of employees complaining.
Maybe they think they’re already doing a pretty good job handling all employee time tracking. Or perhaps they believe their pen and paper time tracking system is working great and that employees are not ever committing time fraud.
You may be quick to see the problem with these assumptions when it comes to time clocks. In this article, we’ll lay out the facts when it comes to employee time clock software and how it can benefit your business.
What is Employee Time Clock Software?
Employee time clock software is a solution that allows your employees to punch in and out of their job from any location you’ve authorized – whether on a smartphone, tablet, computer, or laptop.
Time tracking information is then integrated into your payroll system. The automated process of transferring time for payroll is beneficial to both you and your employees. You save time on processing payroll, and your employees can be happy knowing that their time is being tracked accurately, and they’re being paid for their work.
There are many reasons as to why an online time clock is a better option than manual time tracking methods.
Save Time and Money
Time is money, pure and simple. Small business owners are frequently overwhelmed by time-consuming, manual, and repetitive tasks. There isn’t an employer out there who isn’t looking for ways to free up time.
Manually calculating employee’s time can be a massive waste of time. With an online time clock, you can put an end to hours of manual calculations and transferring information into a spreadsheet or your accounting software.
Employee time clock software does all the heavy lifting for you. Most solutions track data in real-time, automatically calculate overtime, and can even track PTO.
Build Employee Trust
With an automated time clock, you no longer have to watch your employee’s every step. You don’t have to continually remind them to turn in their time cards, tell them to punch out or inform them they are almost out of PTO. You can build employee trust by allowing a time clock system to do its job and “enforce” participation along with honesty.
There are added benefits to using a time clock that your employees will appreciate. Time clocks can act as a boundary and clarifier – they provide employees with a clear understanding of when they punch in or out, which jobs they worked, and even their estimated pay. This can improve the employee-employer relationship when there is a level of trust and transparency.
More Accurate Paychecks
Both you and your employees can benefit from accurate paychecks. If we take into consideration the fact that nearly 50% of employees will start to look for a new job is they’ve received two incorrect paychecks; you can’t afford to not invest in a time clock.
If you think that’s being dramatic, then realize that nearly 90 million Americans are living paycheck-to-paycheck, and approximately 82 million of them have had paycheck errors. Now the issue may make more sense – it’s not a “little” error for most people. It can be the difference between paying rent or buying groceries.
Running payroll can be complicated – especially when you’re dealing with payroll taxes, withholdings, and overtime. By using a time clock, you can take the complicated aspects of time tracking out of the equation.
Eliminate Buddy Punching
Buddy Punch is a prevalent form of time theft. This occurs when one employee punches time for another, even if they aren’t at work. This can cost an employer a great deal of extra money and can quickly dissolve any trust. While this issue is difficult to control with a manual time tracking system, online time clocks typically come with unique features to combat it, such as facial recognition or geofencing.
Facial recognition can ensure the user that is punching time is the correct person by comparing their face to that of an image associated with their account. Only once identity has been confirmed can they punch time.
Geofencing allows you to define limits around a location, and an employee can only punch in or out if they are within the set limits. Although every time clock is different, you should look for one that allows you to enable features that can reduce time theft.
Give Workers a Sense of Ownership
Thanks to technology, we are used to being able to manage just about every aspect of our lives from a mobile device. While the other generations may not fully understand, having a cloud-based solution that allows employees to see their time, view schedules, and check their pay stub can significantly improve the employee experience.
By using a web-based time clock, you can make mundane tasks more modern. And those who enjoy advanced technology can appreciate the personal ease of using an online solution.
Get Ahead of Attendance Issues
Approximately 3% of the workforce in the United States as absent on any given day, according to the Department of Labor. These absences will end up costing you about a fifth of your payroll, and employee absenteeism can cost employers nearly $3,600 per employee every year.
There are many reasons these studies have found that absenteeism is a high cost, but there are two that stand out the most; wages that are being paid to absent employees and the cost of having to manage absenteeism.
Any old time clock can help you keep tabs on this problem, but an employee time clock can make it much easier to track attendance issues. You can get alerts if an employee is late, or you can see if they have missed a shift all together and if it is a persistent problem.
Not only can time clock software reveal absentee trends, but it can also help reduce the actual cost of managing the problem by saving you the time you’d spend on research. Nobody wants to have to stare at a spreadsheet for hours on end and try to spot absentee trends when they have the option to get alerts, charts, and even notifications automatically about absent employees.
Easily Manage Pay Stub Review
Having time clock information online is not only beneficial to you, but it can also be helpful to your employees when it comes to pay stub review. Users can access their time clock information from nearly any device and location to check the accuracy of their time.
Rather than having to call into work and someone pull your file, your time tracking information is available at your fingertips.
No employee time clock software is the same; you will need to do some research and select a solution that has features available that are important for your business and employees. While doing your research, keep in mind that any online time clock is going to provide you with the flexibility and ease of Automation and accuracy, putting an end to some of the more complicated issues that come with time tracking.