In the business world, wasted time can result in lost profits for a company. Therefore, it may be a good idea to have employees use an electronic time clock as opposed to using a paper timesheet to track their hours. Let's take a closer look at some specific ways that companies can save money with this type of tool.
1. Tracking Is More Precise
With modern time clock software, you know the exact minute that an employee clocks in and the exact minute that an employee clocks out. This is important as paying for even a few minutes that an worker wasn't on the job each week could cost hundreds or thousands of dollars in wasted labor costs.
2. Employees Can't Clock In for Their Friends
With a paper sheet or a manual punch card, it may be possible for someone else to write down when an employee reported to or left work for the day. With modern software programs, each person is given a unique number or other identifier to use when clocking in and out. In some cases, the clock won't register a punch unless it can recognize the thumbprint of the employee making it. Therefore, employers don't have to worry about paying someone when he or she was late for work or didn't show up at all.
3. Employers Can Monitor Worker Attendance Habits
Managers and company owners can get an overview of all the information that is stored by the software program. This may help a manager figure out who is showing up on time, showing up late or leaving before their scheduled shift is over. Having this information may be especially helpful for managers who may not have direct supervision of those who work at night or on weekends.
4. Benefit Accrual Can Be Monitored With Ease
In many cases, benefits are accrued based on how many hours a person works. For instance, companies may offer different health plans to those who work 20 hours a week compared to those who work 40 hours per week. If an employee fails to reach that threshold, he or she may not be entitled to those benefits. As they come at a cost to the employer, not paying benefits to workers who don't earn them may represent a significant financial savings.
Companies that want to survive well into the future need to make sure that they don't waste money on labor costs. By using modern timesheet software, they can accurately determine how many hours a person works in given pay period. Through reductions in fraudulent punches, it may be possible for a company to increase profits and reinvest that money into creating a stronger business.