One of the key claims that time clock software vendors make is that by using an employee time clock system, you can save time and money. The reality is, these savings are dependent on how you use your time clock software and the solution you choose.
Choosing the best software and then implementing it horribly is only going to save you money if you were previously using paper timesheets.
Similarly, choosing the wrong time clock software will prevent you from implementing it properly and can lead to resistance from employees. You will likely have wasted a great deal of time and money just getting started.
Let’s assume you’ve chosen a great time clock solution, and you’ve integrated it into your organization. How much time and money can you realistically expect to save?
Before diving into the details, it is worth looking at two steps that you should complete first.
Choosing the Right Time Clock Software
Choose the right time clock system is the first step in the process. If you don’t choose the correct system, then getting it to work for your business is going to be quite challenging.
So how do you choose the right time clock software? Here are five key things to take into consideration:
- Cost and availability of support
- Does the solution match your payroll requirements?
- How easy is the system to use?
- Do reporting options match your requirements?
- Compatibility with your computer systems
Once you’ve spent some time going over those five key points, you will be well on your way to picking the right time clock solution for your business.
Don’t forget to take advantage of free time clock trials while performing your evaluation. Free trials provide a quick way to determine if a solution will meet the needs of your business.
Implementing Your Chosen Time Clock Software
If you’re going to take advantage of the savings that come with a time clock system, then implementation is key. And I’m not referring to the technical implementation, but rather implementation for the human side of your business.
First, you’re going to need buy-in from three key users. This would include management, employees and payroll or your HR staff. Without support from management, you’re not going to be able to enforce time clock policies effectively on employees.
If employees don’t buy-in, then you’re going to run into daily and weekly struggles to collect time and attendance data. Employees will go out of their way to pick apart your carefully chosen solution.
Finally, your payroll or HR staff need to love the software you’ve chosen. These individuals can stand to benefit the most from the system. With that in mind, they should be key members of your implementation process.
Addressing the issues brought up by these three roles could be covered in an article by itself, but here are the five things you need to ensure to get buy-in from each:
- Make sure your time clock policies are complete, but not burdensome. You want absolute accuracy when collecting time and attendance data, so make sure your time clock software is easy to use. If it’s challenging to use, employees may push back.
- Ensure the solution you choose can provide pertinent data to your payroll system that your HR team can use. Make sure the process of exporting time information is quick and easy to understand.
- Your reports should be comprehensive and available in the formats that your payroll staff requires.
- Make sure to implement security features, such as facial recognition, to prevent employee fraud. If your system is allowing employees to track time fraudulently, management is not going to be happy.
- Support costs should be minimal. This would include customer support as well as technical support for your chosen time clock software.
There are many different time clock solutions available that can meet the needs mentioned above, including Buddy Punch. Buddy Punch is a web-based time clock solution that provides comprehensive reports, security features, no support costs, and is very easy to use.
A Properly Implemented Time Clock Solution Saves How Much?
I’ve taken you through the process of choosing the right time clock software and implementing it effectively. But how much will your new time clock software save you?
You’ll find that your business will save money in several different ways. This includes money saved by:
- Less manual time tracking calculations
- Reducing time clock fraud
- Using less stationery and consumables
Manual Calculation Errors
If you make manual time clock calculations for employees, then you are making mistakes. There is no avoiding them. Mistakes can happen because your employee’s timesheets are illegible, payroll staff makes a keying error, or sometimes time calculations are just wrong.
Estimates suggest that up to 1% of payroll calculations are wrong due to errors from manual calculations. Assuming that the average employee works 2,000 per year, an error rate of 1% results in a potential 20 hours of manual calculation errors. If an employee is earning $10 per hour, that’s a cost of $200 per year. If multiple mistakes are made for several employees, that can add up quickly.
Great employee time clock software will make things easier for you and stop payroll calculation errors.
Recover Stolen Time
Whether you call it time clock fraud or theft, your employees will over claim their hours worked. This is especially true if you’re using a manual time clock system or timesheets.
Employees might over claim hours worked if they get to work late, leave early for lunch, or purposefully leave late to get overtime pay. It can also be as simple as filling in the wrong time on their timesheets.
How much time do employees steal on purpose or unknowingly? Some studies suggest that it’s up to 4 hours per week – this is nearly 10% of your payroll.
Regardless of how it happens, well-implemented time clock software can help eliminate this.
Stationery and Consumables Savings
The last area in which employee time clock software can help you save money is through the elimination of paper timesheets and time cards. While it’s not a huge saving, it does add up – especially if you have a large organization with many employees.
So how much money are you losing by not switching to time clock software? It is approximately $600 per year per employee.
The top ways you’re going to save money by using time clock software is through the elimination of manual timesheets, reducing payroll calculation errors, eliminating employee time theft and by getting rid of time card consumables.
The cost savings you can expect in these four areas is quite high. This far outweighs the cost of an employee time clock solution, so take the leap and invest today!