The system of employees punching in and out of shifts is outdated. It’s slow, error prone, and makes doing payroll more of a headache than it needs to be.
Whether you are a business with ten or a hundred employees, timeclock software affords managers an opportunity to save time on payroll, cut labor costs and increase their bottom line all while staying compliant.
What is timeclock software?
Time Tracking Software: How it works and its benefits
Timeclock software is a simple tool that business owners use to keep track of when employees clock in and out of shifts so they can pay them more accurately for the hours they work. It’s most prevalent in industries like hospitality and retail where workers are paid by the hour as opposed to being salaried.
How does it work?
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In short employees clock in and out of shifts and breaks using either their mobile phone or an onsite timeclock kiosk. This activity is recorded in the system so when it comes time to do payroll the manager has all the information about the hours worked and labor cost for all his employees.
This is however only a low resolution picture of what timeclock software is capable of.
Time Theft:
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Time theft describes when an employee is paid for hours they didn’t work. This can occur in a variety of ways. There’s buddy punching, where an employee gets a co-worker to clock in for them. There’s employees extending their breaks. There’s employees showing up late and leaving work early but recording having worked a full shift in the time sheet.
If time theft goes unchecked, it can add up over time and eat away at a business’ bottom line. And the larger your workforce the more amplified the cost of time theft is.
Timeclock software eliminates time theft for good. Employees clock in using a photo, so buddy punching is done away with. In addition to this timeclock software is GPS integrated so employees can only clock in on site. Time clock software will tell managers to the second how long their employees worked and how long they were on break for.
Accurate Payroll:
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The soul sucking arithmetic and risk of miscalculation associated with manual time sheets are gone for good with timeclock software. Timeclock software accurately measures every second employees work thereby guaranteeing fair remuneration.
With features like Timecard Approvals, managers can double-check all timeclock records and edit them if necessary before sending them through to payroll. Most timeclock software packages also have integrations with payroll software making life doubly as easy for businesses.
Managers can also check payroll history to track their labor costs over time.
Compliance made easy:
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Penalties for noncompliance with scheduling legislation can range from fines to imprisonment. It goes without saying that staying compliant with industry standards and regulations is of vital importance to businesses who employ shift workers.
Timeclock software makes it easy for businesses to stay compliant, allowing managers to build customizable rulesets for their business. Managers can build and set rules for overtime pay, industry award rates and public holidays. They can also enforce automated break allocation, to ensure workers take their legally required breaks.
On the mobile app timeclock software gives managers real time information on who’s working overtime, who’s on break, who’s scheduled to go on break. The mobile also sends real time alerts to managers before compliance breaches happen, so they can quickly intervene.
Reporting:
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Timeclock software also has a valuable reporting component. All your employee data from the timeclock is fed into the software which creates several reports. Managers can use these reports to gain actionable insights into their business operations so they iron out inefficiencies that are hurting the bottom line.
Some of the generated reports include:
- Overtime Reports: Discover which employees work too much or too little overtime.
- Punctuality Report: Identify which employees are constantly late to work
- Break Punctuality: Find out which employees don’t adhere to their allocated breaks
- Schedules vs. Actual: Compare your employees scheduled hours with the hours they actually work. This is an especially useful report for identifying cost blowouts.
Time lost is never regained:
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Timeclock software directly increases the bottom line by ensuring workers only get paid for the hours they work. It eliminates stolen time, the compounding effect of which can obliterate a business’s profit margin. Timeclock software indirectly increases profits by ensuring businesses don’t get sued, by operating within the confines of the law.
Free Up Your Own Time:
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The time a manger saves by using timeclock software can be spent focusing on more important, core aspects of their business. The less time a manager spends on tedious administrative tasks which can be automated, the more time they can spend growing their business and getting the most out of their employees.
This is after all what will increase profits in the long run.
