18 Jun What Are All the Benefits of a Time and Attendance System?
Time and attendance is an essential tool for managing your workforce. Time and attendance help you manage when employees are paid, how much they are paid, and how much time they spend working. A time and attendance system can help you keep track of employee activities during the pay period, week, or other unit of time. Time and attendance benefits extend beyond simply tracking employee hours to include other actions. With time and attendance as part of your payroll process, you can also monitor employee wages, employee benefits, payroll, taxes, depreciation expenses, tracking employee shift changes, compensation, etc. Working with a time and attendance software solution from the start allows you to integrate it throughout your organization’s process—rather than simply using it in isolated segments. Let’s explore some benefits of implementing a time and attendance system in your organization.
Increase Staff Morale and Productivity
Employee morale and productivity are often affected by their perception of the fairness of their pay. When employees believe their time and wages are unfair, they are more likely to experience feelings of resentment and even seek other employment. A time and attendance system can be a great asset to employers looking to increase employee morale and productivity. It can help you identify where you might be spending too much on wages or benefits for certain employees. It can also be a valuable tool for consultants and contractors who work in the field. If an employee often clocks out early or regularly arrives before their shift begins, you can look into adjusting their shift schedule to make up for the time. A time and attendance system can also help identify frequently “sick” staff or taking too much time off.
Identify Excess Costs or Slack Funds
A time and attendance system can help you identify excess costs within your organization. On a regular basis, you can look at your time sheets to see what activities are consuming an excessive amount of time. You can then eliminate these activities to ensure that your workforce is using their time efficiently. Doing this can help you identify costs that have risen significantly but are not actually contributing to the company. For example, if you have an employee who is consistently taking a lot of time off during their lunch break, you may find that the time isn’t actually used for business purposes. Many times this will be because the employee is socializing during their break rather than actually getting work done.
Determine Weekly Wage Rates
A time and attendance system can help you determine the weekly wage rates for your employees. If each employee has a time card, you can look at the timestamped entries to determine each person’s hourly wage. However, time and attendance software can be used beyond simply identifying time worked and wages. You can also look at other information, such as shift changes and benefits used, to make more informed decisions. Combined with salary data, time and attendance data can help you determine if rising weekly wage rates are necessary or if they are simply responding to cost increases. This data can also help you determine if there is a pay gap between male and female employees. A pay gap occurs when the same work is valued differently based on gender. It may be necessary to investigate why there is a difference in wages.
Know the Tax Impact of Payments
Many payroll providers include a feature that shows how taxes will be impacted by the wages you deduct from employees’ paychecks. This feature can come in handy when you are unsure whether or not you are withholding enough taxes from an employee’s paycheck. It can also be helpful if you are impacted by a short payroll cycle. You may only have a certain number of payroll days in a given period to collect taxes on employee wages.
Record Employee Sick Time and Paid Leave
Time and attendance systems can be helpful in recording sick time and paid leave. If you have an employee who frequently misses work due to sickness, you can issue a time card for the time missed. You can then use the time card as documentation when the employee is granted sick time or when they use their paid leave. Additionally, time and attendance systems can be helpful when determining the amount of paid leave an employee uses. Your system can show you when leave is taken, which records can help you determine which leave you need to investigate further.
Monitor Salaries and Benefits to Communicate Pay Increases
You may have an employee who is always putting in good effort. However, the work is not generating a sufficient amount of revenue for your business. In this situation, you may want to consider offering them a raise. A time and attendance system can be helpful for communicating pay increases to employees. It can help you identify which employees consistently clock out early, for example, which can be used to determine if they are consistently leaving early from their shifts.
The Bottom Line
Time and attendance systems can be a valuable tool for keeping employee time and wages documented. Time and attendance systems can help you keep track of the following: – Employee wages – Employee benefits – Payroll taxes – Depreciation expense – Shift changes – Compensation etc.
The above information can help you keep track of employees’ time, wages, and taxes.