If there is one factor every business owner, both small and big, agrees that is a significant challenge in running the affairs of a business, it is time management. Effective time management can be a daunting task to carry out manually. However, work efficiency and productivity will increase once you tackle the issue of time management.
A time and attendance system come in, as it can help improve your workforce’s effectiveness because the software’s job is to track the hours punched in by the employees and then export these hours for payroll processing. With this accurate data, you can achieve many results that will help improve your business.
What is Time and Attendance System?
This is simply software that automatically gathers employees’ work time. It helps track employees, such as when they signed in and out depending on their shifts, lunchtime, off-days, and tasks about productivity in their respective departments.
In the past manual punching was used to record time and attendance and determine employee payroll. But this process wasn’t so effective as it was prone to human error. Moreover, there was also the risk of some employees wanting to take advantage of the system through time theft or buddy punching, leading to employees getting paid more than they deserved.
According to one study by Research Gate, over 60 percent of employees pleaded to time theft. At the same time, another piece of data revealed that Buddy punching costs the U.S. $373million annually. So, why do companies opt for such systems? Find below the benefits of a time and attendance system:
1. Save Money
If there is something every business owner will appreciate in their model of business is the idea of how to save cost and maximize profit. No one loves the idea of overpaying their employees either due to human error or sheer fraud because this can likely happen in a system where management doesn’t track employees’ work hours. But this problem can be eliminated or significantly reduced when you have an automated system that tracks records accurately. By using automated time and attendance South Africa, firms now have a viable solution to monitoring the productivity of their workers.
Another benefit is that, after reviewing time records, you can see the amount you’re spending on labor versus the amount your company is earning. Through evaluation, you can know if this is justified or if some adjustments need to be made, such as which branch is underperforming and which one is making a profit. As a result, you can make vital decisions in reducing the workforce or tweaking their work hours. On the other hand, you can think of ways to maximize profit by rescheduling employees’ work periods.
2. Payroll Simplification
Imagine the daunting task of trying to manually track how many hours were spent by employees at work. The same goes for the employee who is manually trying to calculate the number of hours they’ve put in. You see that both the employer and the employee face a similar challenge. With an automated system that provides your company with these records, payroll preparation will be much easier. You can now channel that lengthy time usually spent manually tracking time into something more productive.
3. Time Management
Not all tasks are the same. Some are more important than others. Without an effective time tracking system, employees may have spent most of their time doing the less essential task while appropriating fewer hours for the crucial job.
This is where the time tracking system comes in because it will help employees manage and appropriate their time judiciously. The data it provides lets employees know which task takes the most of their time and where they spend it. Knowing this will help them better understand how to manage and appropriate the required time for essential tasks. It will also help to improve efficiency and productivity.
4. Reduce Absenteeism
It’s one thing for an employee to show up late to work, but it’s even worse when an employee skips work. Not showing up to work is bad for business because it hampers productivity, leading to extra work by other staff, which can cause burnout and make other staff less engaged. In reality, employees will be more likely to skip work or come late to work if they know there is no efficient way of tracking their work hours. The introduction of time and attendance systems will reduce this drastically.
5. Employee Satisfaction
When employees are happy and satisfied, it can translate to an increase in productivity, improving your business. And one of the things that make employees satisfied is when getting paid on time. This could be a hassle when you have to go through the manual way, via sorting through physical timesheets, to know how much you owe each employee.
But when you have a time and attendance system that keeps these automated data at your disposal, the system will help you ensure employees get paid as when due. A study from Oxford University showed that satisfied workers could yield up to 13% more productivity.
A time and attendance system no doubt offers a lot of productivity benefits. As such, effective time management of workers should be a priority because your employees are your workforce which will drive your productivity high or low. A time and attendance system will be integral in helping you evaluate how productive your workforce is.