Whenever a business is in search of a way to increase revenue, it always looks outward instead of inward. As per a survey, 20 percent of the small businesses have to invest in some tool for improving employee productivity each year.
Expanding into new markets and launching new methods of customer acquisition is necessary but so is looking inside. Perhaps it is time to upgrade your time and attendance system?
Kessler International conducted a survey on the employees of retail and service industry. 80% of the workers admitted they are guilty of time theft. Lots of small business owners have continued to neglect an integral aspect of their business model i.e. investing in an employee time tracking system. Tracking attendance on paper, time cards or sheets and buddy punching has caused lots of companies to suffer on a monetary basis. Switching to an automated system can help you track the time of your employees, hence making them more productive, efficient, and happy.
What is a time and attendance system?
Before we look into the benefits of having a time and attendance system, let’s understand what it is. This system allows employees to clock in and out using time clocks, mobile devices, internet connected computer or telephone electronically. The data is transferred into the software instantly and it is then imported into the payroll solution.
Systems like these do more than just tracking when an employee comes and goes. They also monitor the mobile employees through geo-fencing, provide real-time data on who is working and who is not, manage paid off time and create employee schedules.
Importance of a time and attendance system
- Reduction in errors
Time and attendance systems reduce the risk of human error in making payrolls. It is going to be an impartial approach for addressing the needs of the company without confusion.
- Increased security and productivity
Time and attendance systems that follow biometric data collection can eliminate problems like buddy punching i.e. the practice of one employee clocking in or out for another. When the process becomes seamless, it makes the day to day operations efficient and convenient.
- Reduction in costs
Time and attendance systems will immediately reduce labour cost. Why? Because it will be putting an end to buddy punching, tardiness, overpayment, absenteeism, and inaccurate time reporting. It certainly takes a lot of time to collect, manage, calculate and then process the payrolls of all the employees manually. With a time and attendance system in place, everything is handled by the machine.
- Less absenteeism
Even the absence of one employee can negatively impact the efficiency of an organization. Time and attendance system is one of the best ways of controlling that. The software tracks the rates and reports reasons for employee absenteeism. In this way, the line managers are notified about who is taking a day off and why. The employees with unusual absenteeism can be penalized or the issue can be addressed in a way that is in the best interest of the department and organization as a whole. As soon as employees know their absenteeism is being tracked, they will be careful with how much leaves they take.
- Keep the employees informed
For those working in HR, a common question is how many leaves does an employee have. If every other employee comes and questions that, this could affect other workflows. The attendance software can solve this problem. It will allow employees to access the information they need at any time.
When employees are able to see their time records, it will help them see how they are utilizing their time at work. They will also get to know how much time they are spending on a particular project or at certain sites. This will further eliminate inefficiencies. In short, employees will be informed of everything.
- Reduction of paperwork
Sorting, organizing and processing paperwork is extremely time-consuming. One wrong move and you will have to start again. Other than this, the cost of replenishing paperwork can get expensive.
- Stay on the right side of law
As per the state and federal labor laws, it is important to regulate overtime pay and keep records of the employee work hours. All this can be problematic if you don’t have a time and attendance system in place. Because of that, your employees can file a lawsuit too and this could turn out to be costly for your business. So, why not stay on the right side of the law for accurate time tracking. It will be a win-win for you as well as your employees.