- Published: Tuesday, 18 July 2017 17:47
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.