As a small business, of course, your main focus is increased revenue, and, therefore vitality of the business. In an effort to find this, most businesses look outward, rather than inward.
One of your biggest overhead expenses will always be worker compensation. But, what it boils down to is the productivity of your employees.
Are they making the most of their time?
A recent anonymous survey of service and retail industry employees recorded that around 80 percent of workers admitted to “time theft,” according to the surveyor, Kessler International.
Punching time cards is a thing of the past – businesses lose hundreds of hours and thousands of dollars each year by relying on time and attendance systems that revolve around paper time cards or memory recall of the past week’s schedule.
By switching to an automated system, however, you are better able to track your employee’s time and stop relying on the honesty system. Overall, this business change leads to a happier, more efficient, and productive workplace.
Seven advantages of making the switch to an automated time and attendance system include:
1. Prevent time theft – such as “buddy punching.”
You’ve heard the saying “where there’s a will, there’s a way?” Well, unfortunately, some people have the will to appear as though they are never late, but they are lacking the willpower to actually make the necessary changes to be on time. Rather, they find a way around the time clock system. Commonly known as “time theft,” employees will take a longer lunch or have a friend clock in for them if they are running later – known as buddy punching… However, automated time and attendance systems eliminate this entirely.
2. Stay in line with the law.
Both state and federal labor laws closely regulate financial aspects of a business such as record keeping and overtime pay. But, a manual time and attendance system could lead to several errors and/or misplaced information. Rather than worry with a potential lawsuit over backed wages, invest in the new technology of automated time and attendance systems.
3. Prevent human error often found in bookkeeping.
If the bookkeeping records don’t get lost, then there are a good chance mistakes will be found. Even with a good calculator or spreadsheet, people still make errors. A single misplaced decimal or digit can lead to a headache of accounting errors – which could potentially negatively affect your bottom line.
4. Your time system can grow with your business.
While you might be a small business now, you have the potential to grow. A paper-based system might work well for a handful of employees, but once your business takes off, you will need a system that can effectively handle more people. Don’t wait until it is too late to upgrade!
5. Spend less time on payroll.
Let’s face it – payroll is time-consuming, and while everyone likes to get paid, no one likes to do it. Automated attendance and time systems have cut some businesses payroll calculating time back by 70 percent. Upgrading gives employees more time to focus on their respective jobs, rather than messing with the hassle of time tracking.
6. Experience increased productivity.
Running payroll at the end of each pay period can be tedious and laborious. Some companies spend upward of five hours or more each pay period, running payroll. There is much more you could be doing to be productive in those five hours.
7. Reap the bottom-line savings.
The savings you earn from an accurate payroll and attendance system can easily provide a return on the investment within the first year of ownership. By upgrading to an automated time and attendance system, you will save both directly and indirectly. One avenue of savings includes better managing the allocation of tasks across your workforce now that you can accurately see employee’s work times and the return of their work.
Running a small business comes with several areas of overhead – especially employee compensation. In order to keep your business running and thriving, it is important that you maximize every dollar.
Automated time and attendance systems are the business tools of the future –things like desfire technology improved it and will continue to improve it. Rather than looking for outside ways to save money, look for inside improvements that could easily decrease your expenses. Especially in the instance of employee time cards, it is always better – legally and financially – to be accurate on hours work and pay received.