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Four Ways to Reduce the Cost of Labor

In most cases, employee wages are among the greatest expenses an employer faces each month. It makes good business sense then to consider how to minimize this expense, but employers are often unaware or perhaps feel too busy to even begin the discussion. Enter… automated timekeeping.

The good news for employers is that labor and payroll expenses can be reduced. In fact, there are many opportunities to gain control and cut costs without sacrificing production or value with a few essential tools. Automated timekeeping is perhaps the most important. Whether it’s eliminating hours of overpaid wages and unnecessary manual administration, employers can… and should… take steps to minimize their payroll costs.

Here are just 4 ways automated timekeeping reduces your labor expenses.

  1. Eliminate Punch Rounding & Approximating – Doesn’t it make perfect sense to pay employees for their actual time worked… not a rounded best guess? When employees round or approximate their punch times, they round in their favor and employers end up overpaying for labor… by a lot!The average employee records 4 punches per day including lunch punches. If they are rounding to the typical nearest 15 minute increment, then employees can round in their favor by as much as 7 minutes per punch.

    Do you know what 15-28 minutes per employee per day is costing you? It’s a shocking number. Don’t let this outdated practice cost you. The fix is simple. Pay employees to the minute with ease using automated timekeeping.

  2. Put an End to Costly “Buddy Punching” & Time Theft – “I’m running late. Can you just clock me in?” Sound familiar? It happens all the time… and it costs you dearly. The American Payroll Association estimates that over 75% of employers experience loss associated with “buddy punching” both in wages and productivity. Other forms of time fraud and theft are rampant in companies that don’t offer an automated solution for employees, managers and payroll staff. If your process allows for this to occur, you have no one else to blame. Your staff is simply too busy to catch, chase or investigate each occurrence.The fix is really quite simple. It’s automated timekeeping with biometrics. Today, an inexpensive plug-and-play biometric time clock can be easily set up to verify an employee at the clock. Do yourself and your frustrated staff a favor by curing time theft and buddy punching.
  3. Minimize Payroll Mistakes & Human Error – Human error can be an immense expense for employers. The APA estimated human error in time card preparation to be between 1% and 8%. With a $500,000 annual payroll, even a 2% error rate represents $10,000 in erroneous wages.Fixing mistakes also has its costs with administrative time, reprocessing fees, re-issuing checks and so forth, in addition to the frustration caused for all parties involved. Automate tracking and time card preparation with timekeeping. Your payroll staff will love you for it.
  4. Minimize Overtime Costs – Getting the job done for your clients is top priority, but are you managing and minimizing your overtime exposure?With automated timekeeping and scheduling, perhaps you can no longer pay all those employees an extra 15 to 60 minutes of overtime per week resulting from an extra 15 minutes per day. You can easily schedule when employees work, get notified about employees approaching overtime, and have clear visibility of actual versus scheduled hours.

    More than likely, without automated timekeeping or a stiff OT policy you’re paying employees thousands in unnecessary overtime wages at time-and-a-half pay simply because you’re not using an automated timekeeping solution.

In conclusion, automated timekeeping is a small but tremendous investment for employers! Believe it or not, there are many more ways to save! Start putting more of your hard-earned revenue back in the bank with automated timekeeping.

Turn Hours of Payroll Prep into Minutes

In business, there’s often a love-hate relationship with payroll. As an employee, we all love the satisfaction earned on pay day. But as the business owner, supervisor or HR staff, you may be on the other side of that equation due to the tedious hours of preparation required for payroll.

A big part of preparing payroll is accurately reporting employee hours worked. If you haven’t already, why not turn these hours of administration into mere minutes and take much of the pain out of payroll. The good news is that now, with automated timekeeping, there’s a much easier way!

Simplify the Process

More than likely, virtually every employee in your organization is impacted by the payroll process… every two weeks! It may be simply reviewing your time card, approving other’s time cards, coordinating PTO or otherwise. Your staff spends hours collectively reviewing time cards, following up on missing punches and edits, validating hours and more. Perhaps you don’t feel there is a problem… just yet… with this administrative circus. But in the meantime, may we suggest an easier way.

Finally in life, there is a quick fix. It’s called automated timekeeping. Here’s a brief list of just four of ways automated timekeeping takes away pain before pay day.

  1. No more collecting, calculating and preparing time cards manually. Collecting precise in/out times can finally be smooth and automated each day. Employees no longer need to enter hours, remember or approximate punch times, and HR no longer has to fumble with paper time cards. It’s all done simply and automatically online.
  1. Simplify time card approvals for supervisors and payroll staff – Reviewing, editing, and approving punches can now be done by all staff members in a few minutes online through a desktop or mobile device. Employees can easily enter notes right on their time card for supervisor corrections, and approving cards can be done in seconds by each approval layer. Getting back to work has never been easier.
  1. Time Off Requests and PTO Accruals – Approve or disapprove? That is the question, but who has the time do the research for each request, especially during summer months? Now this juggling act can be automated online. What was once a disruptive and time-consuming process for employees and supervisors can all be requested, reviewed, approved and tracked conveniently online in minimal time.
  1. No longer fax in, phone in, or email – We’re happy to help you get payroll submitted in whatever means it takes, but now the process can be much easier. Once approved by your staff, your time and labor data is ready to be conveniently imported for payroll processing online in a matter of seconds.

In conclusion, there is a far easier and less costly way to prepare payroll with automated timekeeping. Take hours or days off the process. There’s no time like the present to make a change. And your payroll staff will love you for it.