As a small business, each detail from customer service to time and attendance counts. The client-facing details are only one facet of how your business operates and thrives. Internal operations are one of the core areas where a lack of awareness and conscientiousness can cost a business.
There are many examples within mainstream media today where an expert comes in to assess failing small businesses and enterprises. Often, the expert has a moment of reprimanding the business’ ownership. Common findings blame management on a miscalculation of product or service costs, inefficient employee time management processes, or lack of on-hand management.
As an owner and a part of the management team, you play a vital role in all these internal details. That’s why it’s equally important to track the amount of time your workforce is providing your business. They are, after all, the pulse of your small business.
Time and Attendance for Small Businesses
Did you know all small businesses have two business fronts? There are the brick and mortar locations providing services or products to their markets. The other front is the internal business for its workforce.
Your employees conduct business each day they’re employed at your location. They are working for a wage and expect these wages to be paid out to them for their efforts. To help keep this relationship healthy, unbiased, and efficient, employers need to get their fair share of employee output. This gets tracked with time and attendance.
What is Time and Attendance?
Time is, at its least, the hours worked by employees from the start of their shift to the end. Attendance is the record tracking of how many hours and days employees provide their duties for your business. Both are needed at the same time to help keep your machine well-oiled and productive.
Consider these statistics:
- $11 billion is lost annually to time theft
- $7.4 billion is lost daily to unreported work activities
- $373 million is lost annually to buddy punching
These figures are derived from studies at enterprises, and as a small business, you cannot risk these catastrophic figures.
Time and attendance are a crucial internal HR function of managing employees. They are needed together to maintain accountability, coverage, and assurance your business can meet supply and demand for that sales day.
Why is Time and Attendance Important?
Payroll records are the most dependent on time and attendance. These measurements are equally important for many other HR functions within your business. Examples include hiring new talent, employee onboarding, and performance reviews.
- Payroll relies on knowing exactly how many hours worked correlate with that employee’s pay period.
- Absenteeism trends trigger the need to hire new talent. You need people who are more reliable and consistent.
- Awareness of coverage gaps can be used for onboarding processes. It gives you awareness where training can be improved or more dynamic. This way, your employees can be multifaceted and able to fill in whatever gaps may occur day-to-day.
- Performance reviews incorporate time and attendance in a big way. It’s a great accountability measurement. This can be used in consideration for retaining and developing your employees.
What Are the Benefits of Automated Time and Attendance Records?
There currently is no law against paper timekeeping records. They are required to be in the English language for U.S. businesses, in ink, and an indelible form.
Electronic, or automated, records meet these criteria without any effort. They also improve efficiency and information security for businesses, which is appreciated when records need to be kept for at least four years. Electronic records additionally help HR functions meet accuracy and compliance standards.
There is an overwhelming number of automated time and attendance options in the HR marketplace today. From CRM software to employee self-service modules (ESS), it can be a long selection process. This is when working with an authorized HR and payroll software provider works to your benefit. They can help you weigh your options in a much easier way.
Some tips to help speed up your considerations include:
- Choose automated software and modules that will work for your current workforce size and your forecasted size
- Opt for cloud-based security whenever possible
- Easy retrieval of archived records
- Options with several layers of security protocols in place
What is Time and Attendance Software?
Simply put, time and attendance software are electronic forms of time clocks and HR communication devices for your workforce. They are available in three forms: CRM, Cloud, and ESS.
- CRM timekeeping software is an all-in-one offering for businesses with several HR functions. The most acclaimed offerings include timekeeping, benefits management, time-off requests, and more. It is available as a web application or a web-hosted platform. The timekeeping can be an external time clock module or a dedicated employee log-in.
- Cloud-based time and attendance software is a web application that supports several types of export options. These tend to be the most compatible with well-known productivity and timekeeping platforms.
- ESS software is the most employee-friendly option allowing timekeeping records on-the-go. At any given time, an employee can check their benefits coverage, electronically submit time-off requests, and when permitted, remotely clock in and out. Because it is a subscription service, ESS modules with dedicated employee logins can be the priciest option for larger workforces.
How to Track Employee Time and Attendance
The best way to track an employee’s time and attendance is with time clock modules or software options. As a business leader, you are most in-tune with how your employees should report their arrivals and departures. Businesses with employees onsite usually find a time clock module in the breakroom. ESS modules are more appropriate for offsite employees, like service providers or contract workers.
Employee Time Clocks
Today, there are several time clock modules that support paper punches, number keypad functionality, fob detection, magnetic card swipes, and even biometric fingerprints or retinal scanning. All are effective methods of timekeeping. The biometric options are ideal for companies concerned with security clearances and buddy punching. ESS modules also are a worthy investment for service-based employees who work offsite. They can use the module to report to their locations and the amount of time spent there.
Electronic time clock modules and software can alert managers and employees of missing punches. They are key for detecting absenteeism trends. These can be remedied with manager overrides, or when permissible, manual corrections by employees.
Employee Time Clock Software
The benefits of incorporating employee time clock software at your business include high levels of security, cloud-based connectivity, and remote support. Each of these is paramount for efficiency and meeting compliance.
When information is stored electronically, it is not as easy to erase or edit. This is thanks to several layers of security protocols to prevent accidental data loss.
Cloud-based connectivity helps the software be compatible with payroll software and other HR platforms. It’s helpful in keeping your business running like a well-oiled machine. Remote support gives you a faster turnaround for technical difficulties. This additionally helps prevent data loss or inaccurate records.
Get Support with PayTech Payroll Solutions
Your workforce deserves as much attention to detail as your client-facing details. Working with a payroll solutions provider, like Paytech, can help you get the right software and materials in place to improve efficiency, security, and accuracy. Our sales team is well-versed in the latest time and attendance software and modules. They can help you find the right tool to keep your workforce accurate and accountable. Our pricing packages are affordable and our dedication to your HR functions is priceless. Start a conversation with us today by calling 602-892-4796.