How much time do you spend collecting and maintaining timing records? As an employer, you must keep detailed records of time worked, time off, and time off. Establishing a reliable timekeeping system is a big part of fulfilling that responsibility. Still, manually tracking your employees’ hours can take a lot of time and patience. It could also lead to mistakes that result in financial loss for your business.
Automated timing systems can eliminate a lot of hassle and save you time and money. A study by the American Payroll Association (APA) showed that an automated timekeeping system reduces the risk of time theft, improves accuracy, and saves you time.
- Time theft. What is time theft? Time theft occurs when employees “waste” minutes by eating long lunches, arriving late or leaving early, or guessing mark times. The APA estimates that these “wasted” minutes average between 8 and 10 minutes per day, per employee. So for 5 employees, that’s 40-50 minutes a day and about 3-4 hours a week. As you can see, it adds up quickly. An automated timing system would eliminate these errors.
- Accuracy. Human error can result from unreadable time stamps or typing numbers incorrectly. According to the APA, human error can cost anywhere from 1% to 8% of your annual gross payroll. A 1% error rate on a monthly payroll of $10,000 would cost you $100. Over a 12-month period, he would lose $1,200.
- Save time. Manual timing record keeping can take hours of your time. The APA estimates that the time spent preparing, computing, and verifying timecards can take up to 5-6 minutes per timecard. An automated timekeeping system eliminates all those hours of work for you.
What kind of timing systems are available? Payroll time clocks are used to automatically capture time data. The following are three main types of watches:
- badge readers
- barcode scanner
- biometric clocks
The equipment for each payroll clock can be expensive. This is why web-based systems have recently gained popularity. They can be a more affordable system. A web-based system also allows you to access your data at any time as long as you have an internet connection.
The bottom line is that an automated timekeeping system can be a game changer for your business. Investing in an automated timekeeping system can save you time and money, while increasing the efficiency and productivity of your business.