For many business managers and business owners out there, increasing profit and growing revenue is a common objective, and in most cases, a constant worry. Growing revenue is the number 1 challenge for businesses with less than 100 employees, and the number 2 challenge for businesses with more than 100 employees.
Sadly, in a bid to maximize their profits, such businesses tend to overlook a very simple solution: upgrading their outdated punch clock systems.
A few years back, employees used to track their breaks and overtime manually via timesheets or punch cards. The timesheets and punch cards were later on calculated manually or by hand. A digital punch clock, by comparison, not only computerizes employee time and attendance data, it can also be integrated into an existing payroll system, and this will in turn eliminate time fraud, payroll errors, and the ambiguity that often leads to legal issues.
Its 2015 and a business that is serious about surviving its infancy should by all means be using an automated punch clock. Below, we are going to discuss 5 ways an outdated time and attendance system is costing your business if you still haven’t upgraded to an automated time punch clock:
- Time theft or fraud
According to a recent survey on service and retail industries, 80% of employees admitted to time fraud, which included buddy punching, failing to clock out during unpaid breaks, adding unworked hours to timesheets, and using personal phones while on duty.
Time fraud usually seems like a small deal to employees who steal a few seconds or minutes from their employees. But these few seconds, minutes or hours eventually add up to a great amount of stolen time. A digital time clock uses personal identifiers and therefore prevents buddy punching. It also has the ability to prevent employees from putting down incorrect hours intentionally or unintentionally.
- Unavoidable human errors
If you are familiar with the saying, “you are only human”, this is where it applies most. Humans simply don’t have the ability and capacity to contend with machines. And this is especially true where subtracting, adding, and generally calculating timesheet data is involved. Opportunities for errors grow as a business grows and as employees become increasingly mobile as is the norm today. Studies have continued to show that traditional time tracking methods, which are extremely error-prone, cost businesses in the U.S billions everyday, something that can easily be avoided with a digital punch clock.
- Useless hours spent on non-work related jobs
Under normal circumstances, an employee should only focus on the job for which he or she was hired for and is best suited for, not menial jobs and activities that are of no importance to the employer. Punching in and out of work via a traditional punch clock can now be considered to be among such tedious tasks. It not only distracts employees from achieving their goals, it uses a lot of employee time that is not spent moving a company forward.
A perfect example of what we are talking about here is when an employee forgets his or her card, or their card fails to function as it should. It is expected that the employee in question will spend extra time hunting down the manager or the supervisor for a manual punch-in.
Another example is when the manager spends extra time adjusting timesheets for victims of malfunctioning cards. Such an action is a clear waste of time and money, and the solution lies in upgrading to an automated time punch clock.
- Excess payments in overtime
Businesses that pay overtime are unquestionably spending money unnecessarily in terms of overtime. While overtime pay might be the right of an employee who works extra hours, it is not strange to see employees exaggerating the exact number of hours they have worked overtime, a habit that can be totally curbed with an automated system. As expected, this leads to a business spending more in terms of overtime hours.
- Stress related diseases
Stress is expensive and when employees are under high levels of work-related stress, it can cost a business more in terms of absenteeism, loss of productivity, and health care. A digital time clock has the capability to curb overtime, especially when it happens to be unpaid for, and payroll errors, both of which happen to be among the most notorious stress-triggers in employees. Payroll errors, for example, generally take no less than 4 days a month to correct. This prolongs paychecks and sometime such errors never get solved reasonably, forcing the employee involved to settle for less than he or she worked for.