For some companies, the traditional manual time tracking method is still the standard. However, this method has many inherent problems that a more technological solution could solve.
Time theft, accounting errors, labor law violations, employee productivity, morale, and difficulties with a diverse work environment are a few of the biggest problems with manual time tracking. Luckily with modern online time clock software, many of these issues can be eliminated, and here’s how!
Employees Accidentally or Purposefully Steal Time
One of the critical things lacking in manual time tracking is accountability. Allowing employees to keep track of their own time manually can lead to time theft in several ways. Sometimes the time theft can be accidental, such as forgetting to take breaks or lunches. Other times, there are more severe time theft issues at play that can be eliminated by using time clock software.
Employees may attempt to punch time for another employee or falsely work hours to get paid more. Employees who falsify work hours are also more prone to handle personal affairs on company time. Time theft can lead to many subsequent problems, including management issues, financial losses, and decreased productivity.
With online timesheet software, you take a manual process and automate it. This means that employees can only punch in and out in real-time and cannot edit hours unless allowed. Time theft preventing features such as facial recognition can also ensure that employees are only punching time for themselves.
Manual Data Entry Leads to Errors
Manual time tracking has a high probability of being inaccurate on its own, add to that the necessity for manual data entry by another party, such as the payroll department, and errors are much more likely. Manual data entry errors can lead to inaccurate payments, discrepancies in hours worked, overtime calculations, and other issues.
Manual data entry is a time consuming and expensive process for businesses that do not count the time and effort necessary to correct errors. This leads to tremendous use of resources for the company and lost productivity.
With employee time software, you no longer have to worry about manual data entry or calculations as the system does all the heavy lifting for you. When it’s time to process payroll, you can quickly sync hours with your payroll provider or run a report to send off to your accountant. While there may be a little manual entry done on their part, the number of errors incurred will still be significantly reduced.
Inaccurate Pay Can Result in Labor Law Violations
Accurate time tracking is a must for any business unless they want to face labor law violations. This applies to not only keeping proper track of employee breaks and lunches but also to scheduling and total hours worked.
Even if by mistake a company fails to account for hours properly worked or improperly records overtime hours as regular hours, this can lead to severe violations. Each violation carries a hefty penalty and can result in a business being shut down for severe or prolonged violations.
Web-based time clock software enables you to remain labor law complaint by accurately logging every minute spent working, on break, or on vacation. In the event of an audit, employee records and changelogs can be run and provided to the auditing agency.
Reduced Employee Morale and Productivity
Manual time tracking can reduce employee morale in many ways. Firstly, employees who experience discrepancies in their pay are likely to feel slighted by their employer and carry grievances against management. They may become less productive when they think they are not fairly compensated for their work.
Secondly, when employees see their colleagues committing time theft, being frequently absent, or late without facing any financial losses or disciplinary actions, this can cause conflict in the work environment and even promote such behavior.
Using time clock software allows you to stay up to date with what’s going on with your employees and take action as needed. If an employee feels their work hours are inaccurate, resulting in incorrect pay, their hours can quickly be reviewed. If you find that an employee is frequently late or misses showing up for a shift altogether, you can take necessary disciplinary action. No matter the situation, you can assure your employees their well-being and fair treatment are a priority.
No Flexibility For a Diverse Work Environment
Time tracking that is done manually is often challenging to manage in a fluid or remote work environment. Relying on manual punch in/punch out systems or paper records can be cumbersome for employees who work odd shifts or work remotely. Returning to a central location to deliver timesheets and calculate totals can also delay the payment process leading to frustrated and unhappy employees.
Issues with scheduling and meeting customer demand are also more challenging with manual time tracking. Figuring out which employees are available during a rush or scheduling the appropriate people for the proper positions in an ever-changing situation can be difficult to nearly impossible with a non-automated time tracking system. This will inevitably lead to lost profits, decreased productivity, and inefficiency in the workplace.
With modern employee timesheet software, you are provided multiple punching methods and flexible access options to meet your unique business’s needs. If you have employees who work on-site, then a centralized device can be set up to allow them to punch time. Those who work from home can choose to use their own device. No matter your situation, time clock software can provide you with the best punching and access method for your needs.