1) Ensures Accurate Payroll
Accurate payroll is essential for the success of your business and the engagement of your team members. Too often, though, the accuracy of employee payroll falls short because of confusing policies, human error, or banking issues.
Incorporating a clock into your business’s workflow drastically reduces the likelihood that you will experience these problems.
Many employee Corporate clocks allow you to program your payroll policies into the machine itself so that it — not you — has to keep track of variables such as:
- Vacation time
- Paid time off
- No call, no show absences
- Shift work
- Part-time vs. full-time
Allowing your corporate clock to collate all of this information means that you’ll spend less time on payroll and more time on tasks that improve your business as a whole.
A dedicated corporate clock also eliminates expensive manual-calculation errors (which can save you up to 7% of your payroll costs) and integrates easily with automated direct deposit of employee paychecks.
2) Alerts You To Attendance Issues
Most modern corporate clocks allow you to create reports based on the “punch in” and “punch out” information the clocks record. These reports give you insight into attendance issues such as:
- Regular, repeated absences
- Long breaks
- Early clock-ins
- Late clock-outs
- Unapproved accumulation of overtime hours
Controlling attendance issues of this kind can save your business up to 21% of annual payroll costs. That’s a significant savings.
Another way that a corporate clock helps you with attendance issues has to do with interruptions to your workflow that can cost you money. Absences (scheduled or otherwise) disrupt the progress of your projects and can have a significant impact on your team’s productivity.
A clock software suite can alert you when team members are absent and help you redistribute the workload accordingly.
Finally, an employee time clock prevents attendance issues from affecting employee morale. Habitual absences from the same employee means that other, more reliable employees have to pick up the extra work.
Too much of that, and your dependable employees may start to resent the absent employee for being gone all the time, and you for allowing it to happen.
The information generated by an employee corporate clock can help you keep motivation high.
3) Saves Your Business Time and Money
One of the main reasons that a clock is essential for businesses of all sizes is because it will help save you time and money.
First and foremost, it will reduce the time it takes to process employee time cards and calculate payroll. Instead of you or your bookkeeper spending hours tallying hours worked, applying withholding, and figuring taxes, the time clock software does it for you. The time you save can then be better spent on activities that improve your business’s bottom line.
Clocks can also save your business money. They do this by:
- Automating collection and calculation
- Reducing errors
- Preventing timecard fraud
- Shifting the responsibility of keeping track of work hours to the employee
In addition to those large savings, a dedicated employee corporate clock reduces (or even eliminates) the need for expensive consumable items such as time cards and calculation forms.
These might not seem like significant savings, but over the long term, they can really add up.
4) Provides Real-Time Information About Labor Costs
It’s one thing to have accurate reporting on attendance issues and other labor costs. It’s another thing entirely to have real-time information about all the variables that affect the way your business tracks time.
A modern employee corporate clock provides that insight.
With the right clock, the level of detail regarding labor costs is astonishing. For example, you can see:
- Which employees and departments are costing you the most in overtime
- Which employees, positions, and departments are using the most time to complete a task
- How your business’s labor time and cost per hour compare to the norms in your industry
- How your production compares to time spent on the job
Deep data such as this prevents guessing and estimating and gives you tighter control over production and labor costs.
5) Maintains Fairness For All Employees
Fairness is a major issue in your business even if neither you nor your employees have ever strictly addressed or expressed it.
Your team members are watching how you do things, and if everyone is treated fairly, trust, accountability, and enjoyment will increase.
Adding a clock reassures your employees that no one will receive special treatment — preferences, biases, and even prejudices are eliminated completely. All that’s left is the cold, hard data that puts everyone on an equal playing field.
At the end of the day, no one can accuse the time clock of impropriety and favoritism.