Running a business with hourly workers means that you generally have to track time in some way or another. Maybe you are tracking time using pen and paper or an old-style punch clock system. Either way, you likely understand that the manual effort in collecting, verifying, and matching time worked with scheduled shifts. Combine this with manually inputting into your payroll system to see the significant time spent managing employee time and attendance.
This time and effort increases as you grow your business by adding staff or dealing with calculation errors. Along with the increased risk of input and verification errors, manual entry increases the risk of employees misreporting their time. There are better ways out there that will allow you to manage this process, reducing the time you are spending and the potential for fraud.
Why Tracking Time is Important
Tracking employee hours with software or tools is crucial for modern businesses due to its efficiency and accuracy. These digital solutions automate the time-tracking process, reducing the risk of human error in manual record-keeping. They provide real-time visibility into employee work hours, allowing for precise payroll calculations and compliance with labor laws.
Reduce Time Fraud
One of the main reasons businesses track time is to reduce and prevent time fraud. Regarding hourly workers, shift workers, and 24/7 operations, it can be hard to stay on top of everything. This allows employees to abuse manual time-tracking systems and commit time fraud.
You might have heard of the term “buddy punching,” one of the main ways people use manual or outdated time-tracking systems. Essentially, a friend or colleague punches in for their co-worker despite not being on site. This leads to employers paying employees for time they have not worked.
This is so common that according to Quickbooks, time fraud costs US employers $ 11 billion annually. So, while manual time-tracking systems are better than none, there are better solutions. We’ll cover those later.
Payroll & Billing Efficiency
Staying on top of tracking time for your employees means you can stay on top of your payroll and billing processes. Having all the accurate data means you can bill your clients on time and pay your employees on time. Again, when this is a manual process, it can be time-consuming. If you are spending significant time collecting the hours, verifying them, and then inputting the data into a payroll system, you may want to consider updating your time clock process.
Compliance with Labor Unions
Most employers know that they must abide by labor laws. Labor unions typically monitor these laws, often requesting records to ensure compliance. By keeping accurate records, employers can always show their compliance to avoid issues with labor unions or, even worse, legal action.
Choosing The Right Tool Or Software For Tracking Time
Tracking time with software or tools is crucial for modern businesses because of its efficiency and accuracy. These digital solutions automate the time-tracking process, reducing the risk of human error in manual record-keeping. They provide real-time visibility into employee work hours, allowing for precise payroll calculations and compliance with labor laws.
Additionally, software tools offer valuable insights into workforce productivity and resource allocation, helping businesses make data-driven decisions to optimize their operations and budgets. Moreover, they streamline administrative tasks, freeing up valuable time that can be redirected towards more strategic aspects of managing a workforce.
Ultimately, using time-tracking software enhances accountability, transparency, and overall efficiency in the workplace, making it an indispensable tool for businesses of all sizes. But how do you decide you need software like Celayix for tracking time? Here is a rough guideline!
Understand Needs
Before you start evaluating different tools and software options, take the time to define your requirements clearly. Consider factors such as the size of your workforce, the nature of your business, and any specific features or functionalities you need. Some standard requirements to consider include:
- Scalability: Will the tool or software be able to handle your current and future workforce size?
- Time Entry Methods: Do you need options for manual entry, biometric time clocks, or mobile time tracking?
- Integration: Will the tool integrate with your existing payroll or HR software?
- Reporting and Analytics: What types of reports and analytics do you require for decision-making?
- Compliance: Does the tool help you adhere to labor laws and regulations?
EASE OF USE
User-friendliness is a critical factor when choosing a time-tracking tool. Look for software that is intuitive and easy for both employees and administrators to use. If the tool is overly complicated, it may lead to resistance from employees and require extensive training. A simple, user-friendly interface can save time and reduce frustration for everyone involved.
MOBILE ACCESSIBILITY
In today’s working environment, flexibility is key. Opt for a tool or software that offers mobile accessibility. This allows employees to clock in and out or submit hours from anywhere, whether they’re in the office, on a job site, or working remotely. Mobile accessibility also helps ensure that employees can track their time accurately, even when they’re not at their desks.
ACCURACY AND RELIABILITY
Accuracy is paramount when tracking employee hours. Look for a tool that offers reliable tracking mechanisms, such as biometric time clocks or GPS-based mobile tracking. These features can help prevent time theft and ensure employees accurately record their hours.
INTEGRATION CAPABILITIES
To streamline your payroll and HR processes, choose a tool that integrates seamlessly with your existing software stack. Integration with payroll, accounting, and HR systems can save you time and reduce the risk of errors by automating data transfer and eliminating double entry.
CUSTOMIZATION OPTIONS for tracking time
Every organization is unique, and your time-tracking needs may differ from others. Look for a tool or software that offers customization options. This allows you to tailor the system to your specific requirements, such as configuring different pay rates, overtime rules, or approval workflows.
COMPLIANCE FEATURES
Compliance with labor laws and regulations is crucial to avoid legal issues and penalties. Ensure the time-tracking tool has built-in compliance features to help you track and manage issues like overtime, break times, and other relevant labor regulations.
COST CONSIDERATIONS
Budget constraints are a significant factor in any software decision. Consider the cost of the tool, including licensing fees, setup costs, and ongoing maintenance. It’s also essential to evaluate the return on investment (ROI) – how much time and money will the tool save you in the long run?
USER REVIEWS AND RECOMMENDATIONS
Before making a final decision, do some research. Read user reviews, ask for recommendations from colleagues or industry peers, and even consider conducting trials or demos of the software. Hearing about the experiences of others can provide valuable insights into the pros and cons of different tools.
Why Automated Time Tracking is the Way Forward
As we mentioned above, manually tracking time is far from ideal. Automated time-tracking systems actually have the potential to transform your business! While they come at a cost compared to most manual methods, they ultimately save you money… let’s see how!
Error Free Payroll & Billing
The American Payroll Association has estimated that errors in manual payroll processes can cost businesses up to 7% of their gross payroll. So, how do you minimize these costs? Automated time tracking collects time and attendance data in many different ways.
For example, we use biometric time clocks, a mobile app, and even voice systems to collect attendance data. A system like Celayix can then go through an automated attendance matching process. Not only that, Celayix then integrates with your payroll and billing providers to accurately transfer data and avoid human error altogether. So, every opportunity for error in manual processes is eliminated with automated time tracking.
Eliminate Time Fraud
As mentioned above, time fraud is a massive issue for manual time-tracking processes. Automated time and attendance systems like Celayix can help eliminate these opportunities.
First, we have the geofencing tool. With the Celayix mobile app, employees can check in/out for their shifts from their phones! To prevent employees from checking in before they get to work or checking out later than they leave, employers can set up a geofence. This is a geographic area around a work site that removes the ability to check in/out unless within the area. Essentially, employees MUST be on site to check in/out from their Smartphones.
We also use biometric clocks to eliminate the possibility of buddy punching. Co-workers would need a colleague’s fingerprint (or other biometric marker) in order to clock them in. The money you spend on your automated system will be far less than the money saved from eliminating time fraud.
Improved Tracking & Reporting
If you manage a mobile workforce or a remote workforce, it can help to have improved tracking and reporting features to see in real time where your employees are. When it comes to manual processes for tracking time, you generally only see that data after a shift has been worked.
However, with automated systems like Celayix, employers can use the map view to see which employees have checked in and where. Our map is fully customizable and allows you to filter by employee, customer, site, and service provided. It’s the perfect tool to improve your workforce management, especially for those with teams across multiple regions. With enhanced tracking & reporting, you might be able to identify opportunities to save money through your employee scheduling.
If you’d like to learn more about Celayix time tracking tools and time & attendance features, speak to a solutions advisor today, request a complimentary custom live demo, or start a free trial!
