- Published: Thursday, 27 July 2017 11:17
3 Hidden Money Leaks in your Business Solved with Employee Time Tracking
By Shannon Corgan, Director of Marketing
You know that your business processes aren’t streamlined as you would like. With less than optimal business processes, it’s taking employees more time to do their jobs than necessary and your employees’ time is your money. When you have so many fires to put out each day, it’s difficult to stop what you’re doing to analyze all the current business processes for your entire business. It can be overwhelming to know which area of your business to focus on, to map out your current processes with the goal of researching technology to automate manual processes.
When the idea of analyzing your whole business seems daunting, I’d recommend focusing on one process that impacts the greatest number of your employees in the organization to find the hidden cash flow leaks. Your employee time tracking and payroll process is a great place to start, because it affects all of the employees in your business.
If you are using paper time sheets or spreadsheets, here are the top 3 hidden money leaks in your business:
1. Overestimated Time Worked:
When you are using paper time cards or spreadsheets, you are not getting the actual time the employee started work and finished work. According to a Robert Half Survey and APA survey, 4.5 hours are lost each week when employees overestimate their hours worked. Your company is also losing money when employees overestimate lunches or breaks, arriving late or leaving early, or conducting personal business. Their time is your money. This is a constant, slow drip like a leaky faucet sending your money down the drain. Keep in mind, if the overestimated time pushes your employee into overtime, the loss to your company is compounded. It’s an even bigger loss to your company when you include all direct employee expenses like payroll taxes, worker’s compensation, liability insurance, and benefits, all of which are based off of labor and time reported.
To see how much the overestimated time is leaking out of your business, check out our Employee Time Tracking Savings Calculator. You will be shocked at the monthly and annual amount of money you are throwing down the drain with spreadsheets and paper time cards. To stop that leaky money faucet, you need an automated time tracking solution like WorkMax TIME that employees can access on any device from anywhere with GPS. This will allow you to know where your employees are when they are clocking IN/OUT stop the constant drip of money down the drain. Capturing their actual hours worked in real time with WorkMax TIME from any device, anywhere, anytime will stop the flow of money leaking out of your business.
2. Human Error
Another business process that is a drain on your cash flow is human error. Your employees are human and make keying mistakes when they manually type data from paper time cards or spreadsheets into your payroll or accounting systems. Unfortunately, when your payroll team is forced to read handwritten time card records, there are also going to be errors and mistakes calculating an employee’s hours from a paper time cards or errors on a spreadsheet. According to the APA, manual time card computation errors can cost your business 1% to 8% of your annual gross payroll.
Use the WorkMax TIME Savings Calculator to see how much money you are throwing down the drain due to human error. WorkMax TIME eliminates any manual keying of employee time tracking data into payroll or accounting systems, because your employees are clocking their time from their mobile devices in real time. WorkMax TIME integrates with most accounting and payroll systems to eliminate human error. Additionally, all the calculations for payroll are correct the first time because an automated time tracking solution like WorkMax TIME, does all the math for straight time, overtime, and multiple pay rates.
3. Manual Processes
The third way that you're leaking money out of your business is by using paper time cards and error prone spreadsheets. When using paper time cards and spreadsheets, your payroll employees have to key in the data and audit it. The APA says it takes your payroll employee five to six minutes to add and audit one time card. This cost adds up as you add new employees and payroll staff to support them. To see how much this could be costing your business, view our Top 3 Savings with Automated Time infographic to see the financial impact on a fifty person company. This entire manual process of auditing and entering employees’ time card can be completely be eliminated with WorkMax TIME.
Once you find these hidden money leaks from overestimated employee time, human error, and manual processes for employee time tracking, you’ll be well on your way to look at other manual and paper processes in your organization. You would be amazed at how much paper forms are costing your business and how you can use mobile forms to increase revenue for your company. To learn more about WorkMax FORMS, check out a short video.
Get started today and find out the money you're leaking out of your business with paper timecards and spreadsheets for employee time tracking. Click here to calculate your savings or view a Workmax TIME Demo.
12 Reasons to Track Time and Tasks in Real Time
By: Shannon Corgan, Director of Marketing
Last week we talked about the financial benefits of tracking time entry in real time with after-the-fact allocation of tasks by your supervisors or employees to boost profits. While allocating tasks, units or cost codes after the fact is a good estimate, for an even more accurate time and task tracking, you really want to have your employees do it in real time. Why do you want your highly paid project managers or supervisors spending their time recapping what your employees did all day? Who would be better to do it than the employees as they are switching between tasks? WorkMax TIME Real-Time Entry with Real-Time Allocation is the most accurate way to track your employees' time and allocate tasks, units, cost codes or phase codes.
Learn how you can help your team become proactive, not reactive with an employee time tracking solution that tracks time and tasks in real time. Here are 12 Reasons to Track Time and Tasks in Real Time:
Projects get completed within budget because you know your labor costs in real time. Keeping projects on budget becomes easy when labor costs are managed as it happens, in real time.
With accurate real-time allocation of labor costs to a project, you get paid faster. There are no delays going back and forth between your employees and accounting to create invoices for billable work. The faster accounting creates accurate invoices, the faster you get paid.
Reduces Overtime costs because employees and supervisors can easily see in real time when employees are approaching overtime. No more’ “OOPS, we went into OT." Your employee and supervisors can see how many hours they've worked.
Automatically calculates the amount of time spent on each tasks with accuracy. There’s no errors in calculating the amount time it takes to complete a task.
Get the EXACT amount of time it took your employees to accomplish the tasks on the projects to better estimate for future projects. With exact numbers, you can bid lower to win more business and STILL make a profit.
You get the actual time an employee clocks IN/OUT and where they were at when they clocked IN/OUT. You pay employees fairly for the time they actually work. No more estimating time worked or rounding time to the quarter hour or estimated time by your employees.
Exclude travel time or the time it takes an employee to walk to their car before they clock out of work for the day with GPS location and GEO Fence. Know where employees are when they clock IN and OUT and only pay them for the time they are working while at the job, project or client where the work is supposed to be performed. Reduce labor costs with GPS location and GEO Fence.
Know how much work was truly completed on the project when employees enter units completed in real time. You can add additional resources as soon as you need them. You don’t have to wait until the end of the day or the end of the week to understand when and where labor is needed, so it’s completed on time.
Identify your top performing employees working on the same tasks and identify best practices by tracking labor in real time. Share best practices to finish your projects more quickly and make your clients happy.
Use time and task tracking productivity to implement incentive programs or reward employees that are most productive for your business. Keep employees motivated by rewarding them when they finish tasks in real time instead of waiting until the end of long projects. Happy employees get more work done and work harder.
With real time visibility into tasks and units completed, you can finish your projects ahead of schedule and WOW your clients. Happy clients mean more business for you.
Get nearly 100% accuracy for job costs with real-time cost codes or tasks, as its happening by your employees. No more guess work later or relying on employees’ memories when allocating costs to the right cost center, task or codes. No need for phone calls or emails to get accurate job costs. Your accounting team spends less time tracking down information and they get more work done.
As you can see, entry of time, task tracking, units completed and accurate cost code tracking gives you the most accurate way to complete your projects on time (and likely ahead of schedule) and on or under budget. When employees enter time in as it happens and allocate tasks, units, cost centers, or phase codes at the same time, you know what’s going on with your projects. You know exactly what is going on with your projects and you can access this information from anywhere, anytime, 24/7/365.
View our five minute video to see how easy it is to track time and allocate tasks in real time.
If your company is looking to automate your employee time tracking with a digital time sheet, check out the 3 Reasons Why People Prefer Digital Time Sheets Blog. To learn more about the three time entry workflows included with WorkMax Time, view our three videos to find the right match for your company. The great thing with WorkMax TIME, you can use one, two or all three workflows to meet the demands of your business today or as you grow.
3 Ways Employee Time and Task Tracking Boosts Profits
By Shannon Corgan, Director of Marketing
Tracking tasks on a project can be a pain. You’re expecting employees and supervisors to change the way they’ve been doing business for years. In their mind, if it ain’t broke, don’t fix it. The sad fact is that it isn’t working as well as it should and leading project-based companies are looking for easy solutions to manage their projects and better track project tasks.
According to a recent study by the Standish Group, less than a third of all projects were completed on time and on budget over the past year. Are you in the two-thirds of project-based businesses that failed at completing projects on time and on budget? The Access Group's study shows 62% of businesses cite “capturing time /costs against projects” as their biggest project management challenges.
Here are 3 reasons why you should track employees’ time and tasks:
Accurate Project Cost/Estimates
Project-based businesses want to improve their future project costing and estimation, so that they can bid more competitively and win more business. In order to improve their project job costing or estimation, they need to have historical information about how many hours a similar task took, to accurately scope out a statement of work (SOW), Request for Proposal (RFP) or bid on a project. With an automated employee time tracking solution that tracks tasks and units completed like WorkMax TIME, project managers and supervisors know if they need to add resources to finish the project on time and on budget.
Expedite Invoicing with added accuracy - With an automated time tracking system, you can get more accurate billing and invoicing. No more time wasted on figuring out which employee’s time should be billed to which client and what tasks they were working on. With WorkMax TIME, your client invoicing/billing is faster than ever because your employees are tracking their tasks and time to the right project, cost code and/or phase code to accurately bill your clients. You can also include the employees and the tasks or activities they worked on during that billing cycle for your clients. Clients love knowing exactly what they are paying for and to see the progress on their projects.
Increased Accuracy and Efficiency for Payroll
Another reason to use an automated time tracking system to track your employee’s time is for accurate payroll. It expedites the payroll process, eliminates manual data entry, and makes sure your employees get paid on time. There’s no question about the hours worked when they use an automated employee time tracking solution like WorkMax TIME that collects it in real-time or after-the-fact. There’s no question about if the right person clocked IN/OUT for the day with photo face capture and if they were working at the right client site or location with GPS.
Now that you know the reasons why you want your employees to track their task and the positive financial impact on your business, you may be wondering how to get started. There are many employee time tracking solutions out there, but make sure you find one that is flexible enough to allow you to use Digital Time Sheet, Real-Time Entry with After-the-Fact Allocation or Real-Time Entry with Real-Time Allocation. You may want to start with by getting employees to Clock IN/OUT in real time for the ultimate accuracy for labor hours, but you don’t want to force employees to track all of their tasks throughout the day. You may want to rely on your supervisors or project managers to allocate your employees’ time to the right tasks, cost centers, or phase codes on a daily or weekly basis to start with. WorkMax TIME gives you the flexibility to have supervisors or project managers allocate your employees’ tasks at the end of the day or end of the pay period. Based on your industry, you may not need real-time task updates to be completed by your employees throughout the day and only need a good estimate of what they are working on. WorkMax TIME’s Real-Time Entry with After-the-Fact Allocation Workflow is a perfect fit for you if don’t need real-time allocation of tasks, cost centers, or phase codes. It’s also a great fit if you don’t need that level of detail to manage your business or to satisfy your client’s needs. The labor hours are accurate to the minute with the real-time clock IN/OUT and authenticated with photo face capture. Photo Face Capture makes sure you have the right employee being paid for the work they’ve performed. This workflow also allows you to get GPS location and establish a GEO-Fence when employees Clock IN/OUT outside of the defined area to make sure you’re only paying your employees that are at the right location.
WorkMax TIME has three workflows for time entry and allocation to meet all needs of any organization. Today, we’ve discuss the Real -Time Entry with the After-the-Fact Allocation Workflow that allows your supervisors or project managers to allocate time at the end of the day or week in the web-based WorkMax Control Center. We also offer a Digital Time Sheet or Time Entry in Real –Time with Real-Time Allocation. You can use one, two, or all three time entry and allocation methods. WorkMax TIME’s flexibility allows you to meet the needs of your salaried employees or hourly employees in the office or in the field or project and task based employees in the field or office. Employees can enter time in real time or after the fact and allocate tasks in real time or after the fact. It's your choice.