For employers managing an hourly workforce, one of the most critical human capital management trends is insisting on a state-of-the-art time tracking system. Because while your workforce may be your most valuable asset, managing hourly employees is no easy feat.
A robust time tracking system is one of the most powerful tools you can give your field managers—your human capital management system isn’t really complete without it.
So, how do you know if your time tracking software is up to par? It should be easy to use, but hard to outsmart—i.e., it prevents time theft. It can adapt to meet the requirements of your hourly workforce, such as accommodating union rules. Furthermore, it generates useful HR analytics that let you keep improving your operations.
How does your system measure up?
If your answer didn’t thrill you, and if you manage an hourly workforce, consider why you should make robust time tracking software a key part of your human capital management system.
A Great Time Tracking System Will Trim Your Labor Costs
Most likely, you’re paying for fat in your current labor costs. Some of it comes from manual errors, which is estimated to cost employers up to 8% of payroll.
Unless you’re using biometric time clocks, some of it undoubtedly comes from time theft—a very real problem for every employer that pays by the hour. Even diligent employees may inflate their time when opportunities present itself, and it adds up.
In addition, buddy punching—when an employee punches in or out for a coworker—is epidemic when employers rely on paper timesheets, time cards or swipe cards. State-of-the-art time tracking systems use biometric time clocks with fingerprint or facial recognition technology, the single best way to prevent time theft.
A powerful time and attendance system can even help you curb overtime costs. For one thing, it should feature an easy-to-use employee scheduling module that alerts managers when they inadvertently schedule overtime hours.
For another, it will offer a feature called real-time overtime alerts. Managers can program the system to send out real-time text or email messages when employees approach the overtime threshold, nipping accidental (and not-so-accidental) overtime in the bud.
A Complete Time Tracking System Ensures Payroll is Accurate
If you can’t track your hourly employees’ worktime with absolute precision 100% of the time, how do you know you’re calculating their pay correctly? A competitive time tracking system offers a range of data collection devices that work in various work environments, so every employee’s time can be tracked, wherever they are.
For example, if a time clock isn’t an option at a given worksite—say, a small group of janitors dispensed to a client’s facility—perhaps a mobile time tracking app with GPS (another popular human capital management trend!) is a better solution. The bottom line is, a great time tracking system works 100% of the time to ensure payroll accuracy.
A Smart Time Tracking System Keeps You Compliant
When it comes to wage and hour lawsuits, ensuring employees are paid correctly—as discussed above—is half the battle.
What’s the other half? Human capital management systems with truly robust time tracking software employ proactive workforce management features that help prevent lapses in compliance.
For example, some time tracking systems won’t allow employees to log back in following meal breaks until the mandated break time duration is up, helping employers avoid meal break lawsuits, while helping employees build good habits.
Advanced Time Tracking Software Yields Useful HR Analytics
Leveraging HR analytics is another growing human capital management trend. The best time tracking software makes it easy to generate on-demand data and reports that offer instant visibility into the activities of your workforce.
Is there a pattern to employee absenteeism and tardiness? Is it occurring on specific worksites or shifts? When and how are you incurring overtime costs—is this really a management training issue?
When you can pinpoint these things, you can take corrective action. With powerful HR analytics at your fingertips, you can manage your people more effectively and make informed business decisions—a competitive benefit every company can use.
EPAY’s Time Tracking System was Designed for the Hourly Workforce
Yes, a powerful time tracking system is a must for employers managing an hourly workforce. But surprisingly, most human capital management systems don’t include time tracking software that’s truly built for the workforce on-the-clock.
EPAY is the exception. Our time tracking solution—part of our comprehensive human capital management system—was designed to handle the complexities of an hourly workforce. As a result, we’re the #1 time and attendance system provider for medium and large employers with an hourly workforce. Ask for a customized demo today.