The easiest way to improve employee engagement is by consistently paying them the correct wage. While it is simple to pay your exempt employees correctly, as they receive the same pay every pay period, paying your non-exempt employees can be a little more difficult. Keeping track of your employees’ time correctly is critical to the success of your payroll department. There are an array of issues and errors that may arise when it comes to your employees’ timekeeping management. Running a successfully business starts with avoiding timekeeping mistakes.
Timekeeping mistakes to avoid
Time and labor costs are one of the highest expenses that most businesses endure. Making sure that labor costs are managed and reported accurately will reduce costs and improve margins. Precise timekeeping is essential in doing so. Common mistakes to avoid in your timekeeping process include:
- Tracking time manually
- Uneducated staff
- Lack of timekeeping policies
- Failure to review time entries
Tracking time manually
A majority of issues related to time tracking and reporting occur because of manual processes. The use of physical time cards for time keeping can result in lost cards and administrative headaches. Searching for and manually reviewing these physical time cards result in lost time and inefficiencies. Data entry errors will eventually happen when manually inputting time into a payroll spreadsheet. All of these issues can be eliminated with the use of an automated time tracking solution that integrates with your payroll system. A time tracking software allows you to easily view, edit, approve, or deny employee time cards. Once approved, those time cards will automatically flow into the payroll system for fast and efficient payroll management with no need for manual data entries.
Whether using an automated time keeping system or manually tracking time, employees need to be trained on the company timekeeping system. Employees should know the importance on accurately tracking their time. Make sure all the necessary tools are available to them when they need them. Trainings should occur on things like how to login if using a system, how clock in and out, making adjustments to punches, who to submit punches to for review, and more. Employees are the first line of defense in eliminating time and pay errors.
Lack of timekeeping policies
Just like all other aspects of a business, policies need to be created and enforced regarding timekeeping. These policies provide guidance on things like; how early employees can punch in, when employees need to punch in and out for breaks and lunches, if employees need approval to stay past their scheduled time, as well as the time card approval process. Consequently, allowing employees to clock in early or stay late at their convenience, or not punching out for breaks, will impact the bottom line. Finally, enforcing company policies will eliminate time fraud and enhance compliance.
Failure to review time entries
Another common mistake when it comes to time management is failing to review employee cards. Similarly to a lack of company policy, not reviewing time cards can result in employees punching in too early or late, not punching in or out for breaks, or forgetting to clock in all together. Ensure accurate time and payroll by having managers double check all time entries. This simple step eliminates any time card errors, reduces potential time fraud, and saves businesses money. Using automated time tracking streamlines this process by allowing managers access to time cards from anywhere. Once edited and approved, time cards flow into the payroll system and managers can easily submit payroll for processing.