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Choosing whether to use paper or a time tracking software to record employee times seems like it shouldn’t be a big deal. As long as you’re paying your employees, it doesn’t matter how you keep track of the time, right? But using a time tracking software can actually make a huge difference for your employees, payroll manager, and company. Here’s why.
Your Employees
Take a moment to think of all the things your employees do from the moment they walk in the doors of your company to the moment they leave for the day. How much of that time is spent on productive work activities? How many hours are used to browse the internet, direct message coworkers, or solve personal matters?
According to Market Future Research, the United States economy loses 50 million hours in productivity per day due to unrecorded work activities. If you don’t track the time employees work, they are more likely to waste that time on tasks that don’t benefit your business.
Additionally, an employee’s memory tends to be unreliable when it comes to recalling amount of time worked. Not only is it easy to round the time they arrived to or left work, it’s also easy to miscalculate the amount of time worked based off the clock in and out time.
Your Payroll Manager
The role of a payroll manager is one of the most important in the work force. Why? Because employees need to get paid. And hourly employees need to be paid properly for all their time worked, or there are costly consequences. On average, 49% of American employees will quit their job after experiencing just two problems with their paychecks, according to ASAP Payroll Service.
So how can a payroll manager assure their employees that their paychecks will arrive on time and without errors?
Running payroll can be a complicated, time-consuming, and stressful task, especially if you need to calculate and record hours manually. Mistakes are bound to be made without a time tracking software. Luckily, based on ASAP Payroll Service‘s data, 44% of companies that have a software with time tracking and payroll features are less likely to commit errors.
The workload of running payroll also significantly decreases with a time tracking software. Therefore, getting employee paychecks out when they’re scheduled to is much easier. Actually, data from Netsuite states that up to 93% of employees in the US said that their paychecks are always delivered on schedule because of productivity tools such as time trackers.
Your Company
Without the business, there are no employees, and without employees, a business cannot function. Their relationship is essential, but it can also be tricky. Employers must follow laws and regulations in order to maintain it. These include keeping track of employee time and paying employees for the time they’ve worked. But how that time is tracked is up to the company.
However, there are several reasons why a time tracking software can be extremely beneficial to a company. One is that time theft is much more common in businesses that don’t use a software to track time.
Did you know that time theft affects 75% of businesses (Connecteam)? That time theft can cost employers an an average of $11 billion per year, as reported by WorkPuls.
Before you start pointing fingers at all the employees that would dare to steal time from your company, know that most time theft doesn’t occur purposefully. Remember, human error happens when employees are required to just remember how much time they worked. Time theft usually comes in small amounts at a time, but it can add up quickly.
As the owner of a company, you must consider all the costs that go into paying your employees and weigh the benefits. Would you rather pay a few hundred dollars for a software to track your employee time or pay billions for time theft, payroll miscalculations, and wasted time?
Closing Comments
If you are a company owner, CEO, or manager, you may want to consider investing in a time tracking software. According to The Economist, “73% of organizations are very satisfied with the returns from automating their business tools and processes”. What will you choose?