The benefits of employing a Time & Attendance System
You hope for the best when hiring employees or contract workers. You expect them to be sincere in performing their job, in return for fair compensation from your side. But how many of these expectations actually come true? The American Payroll Association says, not many.
In a widely-reported survey, the association found that 75 percent of American businesses are tricked by employees into paying extra. Nearly 25 percent employees from these businesses engage in buddy punching (clocking in and out for their friends) and report exaggerated work hours. As a result, the average business loses 18 hours' worth of wage in a month on every buddy-punching employee. Imagine the horror! Unfortunately, it only gets worse.
In a more recent, 2015 study, Software Advice found that 43 percent of hourly-wage workers engage in time theft. 23 percent engage in buddy punching, 42 percent waste time in extended meals and frequent breaks, 43 percent use work hours to take care of personal chores, and 45 percent exaggerate their actual number of hours worked during timekeeping.
The risk of time theft is higher for employers in the business services industry
The scope of a typical company operating within the business service industry is such that that hourly employees and mobile workforce become a necessity. Whether your company offers security, travel, and logistics, administration, cleaning, waste disposal or other business services – you do hire a large number of either mobile or hourly-waged workforce. And this is one of the primary reasons why your risk is higher.
Mobile workers, who check in and out of different job sites in remote locations and contract workers who are paid by the hour can easily engage in inaccurate timekeeping and buddy punching. They can also waste payable work time by taking longer or more frequent breaks and by performing personal tasks, more easily than employees in many of the other, less lax industries.
And this is where a time and attendance systems come in
With a time and attendance system, you can:
• Monitor and keep track of the times when your employees start and stop work
• Track hours spent in meals and breaks
• Record attendance
• Record sick leaves, personal leaves, vacation time, compensation time and other absences
• Monitor the type, quality/quantity, and location of work performed (for example, the number of items produced or the department in which a task was performed)
As a result, your timekeeping becomes accurate and reliable, allowing you to ensure there is no overpayment (or underpayment) from your side. Consequently, labor costing becomes more efficient.
Automated time and attendance systems also eliminate interpretation, transcription, and intentional errors in HR and payroll processing as well. Because you do not need staff for manual processes, you save further in terms of labor costing. These are only three of the several cost, profit, and productivity benefits of employing a time and attendance system. And Mitrefinch can help you enjoy all of them.
Transform how you manage workforce today!
Mitrefinch has helped more than 4,000 businesses across the globe streamline workforce management, improve timekeeping, reduce payroll errors, and boost productivity with high-quality, high-performance time and attendance systems.
For more information on how Mitrefinch can help your business, fill out the form below.