5 Ways Manual Timekeeping Costs Your Business

Still using pen and paper? Have you considered how much manual timekeeping costs a business?

1. Employee Time Theft

Pen and paper timekeeping systems can be exploited in a number of ways from hours padding to buddy punching. Some large employers who switch to an automated system are surprised by the drop in employee hours the very first pay period. Even if you notice just a small reduction, this advantage will compound, quickly paying for the cost of adopting an advanced yet cost-effective automated system like TimeWorksPlus.

2. Inaccurate or Insufficient Records

Without trustworthy employee hours data, it is hard to make informed decisions about human resource allocation. This, in turn, minimizes productivity.

3. Unnecessary Admin Costs

With paper timesheets, your admin staff spends tedious hours troubleshooting timesheet inaccuracies and missing information, and then manually entering the data into the payroll system. When your HR staff can submit payroll in minutes, they are free to work on company initiatives that elevate employee productivity and loyalty.

4. Increased Overtime

Pen and paper timekeeping systems don’t have built-in warnings to notify managers when associates are approaching or have exceeded their authorized hours. The larger your company, the more last-minute overtime costs you.

5. Higher Employee Turnover

Inaccurate timekeeping and restricted access to basic information contribute to employee frustration and higher turnover. Many employers don’t realize how costly it is to replace team members.

Numerous studies have established that it costs about 20% of annual salary to replace an employee making less than 50k a year and the costs increase with higher paid employees.* Do the math: for a team member making $30,000 a year, that would be $6,000.

Automated time and attendance systems allow employees to manage their time cards and monitor PTO, vacation, and other accruals without having to go through a supervisor or the HR department. When employees are empowered, they feel better about their jobs which results in increased productivity.

*Heather Boushey and Sarah Jane Glynn, “There Are Significant Business Costs to Replacing Employees,” Center for American Progress, November 16, 2012, https://www.americanprogress.org/issues/economy/reports/2012/11/16/44464/there-are-significant-business-costs-to-replacing-employees/

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