5 Ways Manual Timekeeping Costs Your Business

5 Ways Manual Timekeeping Costs Your Business

Still using pen and paper? Have you considered how much manual timekeeping costs a business?

  1. Employee Time Theft

Paper timecard systems can be exploited in a number of ways from hours padding to buddy punching. Some large employers who switch to an automated system are surprised by the drop in employee hours the very first pay period. Even if you notice just a small reduction, this advantage will compound, quickly paying for the cost of adopting an advanced yet cost-effective automated system like TimeWorksPlus.

  1. Inaccurate or Insufficient Records

Without reliable employee hours data, it is hard to make informed decisions about human resource allocation. This, in turn, reduces productivity.

  1. Unnecessary Admin Costs

With pen and paper time and attendance systems, your admin staff spends tedious hours troubleshooting timesheet inaccuracies and missing information, and then manually entering the data into the payroll system. When your HR staff can submit payroll in minutes, they are free to work on company initiatives that increase employee productivity and loyalty.

  1. Increased Overtime

Manual time and attendance systems don’t have built-in notifications to inform managers when employees are approaching or have exceeded their authorized hours. The larger your organization, the more unplanned overtime costs you.

  1. Higher Employee Turnover

Inaccurate timekeeping and restricted access to basic information contribute to employee frustration and higher turnover. Many employers don’t realize how costly it is to replace team members.

Numerous studies have demonstrated that it costs about 20% of annual salary to replace a staff member making less than 50k a year and the costs increase with higher paid employees. Do the math: for a team member making $30,000 a year, that would be $6,000.

Automated time and attendance tracking allow associates to handle their timecards and monitor PTO, vacation, and other accruals without having to go through a supervisor or the HR department. When staff members are empowered, they feel better about their jobs which leads to increased productivity.

This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.