The Hidden Cost of Inefficient Employee Tracking
Inertia is such negative word, yet it’s a powerful force. One we all fall victim to at one time or another. Inertia is, after all, one of Issac Newton’s Laws of Physics: an object at rest tends to remain at rest.
Why make changes if we may not need to–in other words: “if it ain’t broke, why fix it?” The risk with this mindset, though, may be when an underlying issue escapes our attention.
Are You Overlooking What’s Broken With Your Employee Tracking?
Something might indeed be broken, but we’re busy worrying about 800 other things to notice. We may perceive a system to be working, but there could be a leak in revenue lying beneath the surface.
Paper-based methods of time management and employee tracking, even well-oiled ones, may be seriously detrimental to your bottom line.
Surprise, surprise: most employees do not enjoy the task of filling out timesheets. The tendency is to quickly dispense with this annoying requirement, but hastily-scrawled paperwork doesn’t exactly lend itself to accurate reporting.
Manual Employee Tracking Is Inefficient, Error Prone & Decreases Productivity
How many times have you reviewed timesheets with one’s regular work hours carelessly written next to each date? Probably many times.
Employees Hate Manual Employee Tracking
What may not be written, however, are the few minutes of lateness here and there, the extended lunch, or even the extra hours that may have been spent working on a special project. Rounding up and estimating leads to inaccuracies.
Interrupting one’s work tasks to fill out paperwork can also add up to decreased productivity. It’s estimated that it takes more than 25 minutes, on average, to return to a task after being interrupted. And interruptions, even quick ones, can lead to errors when the task is resumed.
HR Hates Manual Employee Tracking
Paper time sheets are equally abhorred on the HR end.
Industry estimates have determined that it takes an average of seven minutes to enter each employee’s hours per pay period. Do the math: that’s time better spent elsewhere.
Manual entry also increases the likelihood of human error. Again, more potential for inaccuracies.
Are There Issues With Time Clocks For Employee Tracking?
Time clocks are perceived as accurate time keepers for employee tracking, but the consequences of “buddy punching” should not be underestimated.
What Is Buddy Punching?
Buddy punching occurs when one employee punches in a friend who may be late, or even absent, from work to save them from being penalized. An employee probably doesn’t have the word “theft” in mind–they may punch in a group returning from lunch while one parks their car, one takes a smoke break, one completes a personal phone call.
However, theft is what this practice truly is, and it happens frequently. Buddy punching is estimated to cost U.S. businesses $98 billion per year.
Inaccurate Reporting Can Come Back To Haunt You
If you are audited or need to defend yourself against a claim of wage or hour violations, paperwork with estimated work hours and inaccurate punch cards (even if they’re presented in a well-organized binder) could make matters worse. It may take significant time, effort, and cost to gather information in the first place, and when all the information is gathered, the story it tells of your business might not be the one with the happy ending.
It may be necessary to investigate an improved time and attendance solution to move your game forward. It doesn’t have to be painful; a more automated and transparent system might be welcomed by everyone. After all, remember the second part of Newton’s law: “an object in motion will continue in motion.” That’s not a bad mantra to live by.