Many small and mid-size businesses in the U.S. routinely fail to track an employee’s time and attendance throughout the year. For certain, this results in lost profitability, but additionally, operating a business without some sort of employee time and attendance software is like running an corporation without looking at monthly financials. You’re just asking for trouble.
We all know that a company’s largest expenses are labor and the costs associated with managing a workforce. Why then would any company, even those with only a handful of employees, not implement some sort of time-tracking software that can monitor hours worked, streamline payroll reporting and accuracy, and even add to workplace satisfaction and higher degrees of trust? Well, quite frankly, they should.
In its most fundamental circumstances, employee time tracking is a prerequisite for protecting your company’s profits. According to the Bureau of Labor Statistics, 59% of Americans are hourly workers, and it’s no coincidence that hourly workers need to have their hours tracked carefully. While most workers take pride in their efforts and are loyal employees to your corporation, some are not. However, this does not preclude salaried workers from tracking hours, too, but many times small and mid-size businesses are reluctant to have salaried employees track hours.
Let’s look at this example of how a failure to track employee attendance can reek havoc on your bottom line. If employees spend merely 15 minutes a day cumulatively not being productive, showing up late, leaving early, running a quick personal errand, or whatever the instance might be, that’s a total of more than 62 hours of wasted time in a 50-week work year. Assuming that the medium wage in the U.S. is $26,965, according to the Social Security Administration, this would be $810 of lost payroll each year for each employee. Most assuredly, many of your employees are making well above the median income wage, so chances of your lost earnings from not tracking your worker’s hours would be considerably more.
In fact, the ROI for the implementation of a time and attendance software solution, like the one offered by Workloud, the international workforce management company, for instance, is relatively fast when understanding that these potential losses would most assuredly be greatly diminished.
But the benefits of implementing some sort of employee scheduling software doesn’t begin and end with an impact on a company’s profitability. There are also issues of employee satisfaction, payroll accuracy, and error reduction that can play significant roles in the equation.
Nothing quite derails a culture of employee satisfaction quite like late payroll checks and inaccuracies. The threats of this occurring are hugely reduced with time and attendance tracking solutions. Further, it’s widely agreed that manually tracking employee hours and converting those manual tasks into some sort of payroll program can be wrought with the potential for multiple errors during multiple payroll periods. Industry experts place most attendance tracking software as having an above 99% rate of accuracy which will, no doubt, reduce errors and save on costs.
In the end, small and mid-size business can implement similar employee attendance tracking solutions that large, multi-national companies do. In some cases, these applications, including Workloud’s, have scalable versions to meet the unique needs of companies with fewer workers.