Accurate timekeeping at the point of entry and exit of employees for payroll is not only beneficial for human resources but for employees as well. Timekeeping has always been subject to a lot of inaccuracy and sometimes even manipulation at the hand of employees. In order to make the system more transparent and effective, companies have started to implement automated timekeeping and payroll. This step is also the result of the FLSA (Fair Labor Standards Act) which requires employers to collect and maintain accurate records of the number of hours worked by employees. Some states even require employers to document the break and leave times other than the work hours.
The benefits of automated timekeeping for human resources are as follows:
Handwritten records were plagued by inaccuracies and would lead to problems in understanding handwriting. It was also susceptible to manipulation where employees could write down the incorrect timings in order to get a more favorable attendance record. Punch cards faced similar problems where employees would time in their colleagues who running late.
Reports show that companies that have an automated timekeeping system have higher rate of productivity as opposed to those who have manual systems. Automated payrolls reduce the amount of time spent by Human Resources in chasing down numbers and making records and calculations. This allows them to focus on more important tasks rather than a monotonous task.
If an employee is prone to arriving late or leaving early or seems to shave a few minutes off either end on a frequent basis, HR will be immediately prompted by the automated system and can get the situation under control immediately. Since timekeeping records are available for employees to view, they will also have insight into their own performance and will alter it accordingly.
This system is particularly helpful when it comes to being audited by the IRS. Since employee hourly data is recorded by timekeeping systems; it becomes easier to make sure that the company is working in compliance with labor laws and regulations. Since all documents have been stored onto a server, providing the data to the IRS becomes easier. This allows the audit process to run a little smoother and is considered one of the best tools of business utilization. Even if the audit is not being done by the IRS, it’s important to have a payroll system to measure compliance internally and to do internal audits.
Most companies have different systems or grades according to which they provide remuneration to their employees. Some may have employees receiving payment at hourly, daily or monthly basis. Other companies may have a hybrid of these systems for various employee grades within one organization. These calculations can be subject to inaccuracy and may be complicated for HR to compute on their own. The automated timekeeping system eliminates all such inaccuracies and discrepancies, allowing HR to compute salaries accurately without wasting time and resources.
Contact WorkTech to learn more about how an automated timekeeping system can deliver significant benefits for your organization.