Tag: time clocks

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How to do a time audit [3 step guide]

Astronaut Dog Sitting and Working at a Laptop

Summary

  • Check the reliability of your data source: are you using outdated, manual strategies? — More

  • Look out for patterns across your system. Where are things going wrong? Too much overtime? Not enough breaks? Find out. — More

  • Translate your findings into long-term benefits for your business. — More

During the 2021 financial year, the Department of Labor’s Wage and Hour Division awarded more than $230 million in unpaid back wages to US workers and brought almost 25,000 compliance actions against employers. Clearly, it’s never been more important to be on top of your time and attendance data.

The nature of shift-based work makes keeping track of how much time employees are at work a bit more complicated and, therefore, more likely to land employers in hot water with the authorities. The healthcare industry is one such example and has had a number of high-profile cases of recovered back wages.

It can be tempting to view a time and attendance audit simply as a way to check in on employee work hours and ensure that they’re being paid the right amount. That’s certainly one function and a vital one, but a time audit process can do much more. With the right approach, a time and attendance audit offers a regular opportunity to fine-tune your business to boost productivity and time management while making sure the fundamentals are aligned and compliant.

Prioritizing your time audit process and integrating it into your management workflow is crucial since, as we’ve seen, not doing so can come at a high cost. Using time tracking software and following our step-by-step guide, your audit doesn’t have to be difficult or take up a lot of time. 

1. Check your data at the source for basic errors

There’s a useful phrase in the field of computer science that is worth making your audit mantra: GIGO or garbage in, garbage out. It means that the quality of your data outcomes is always dependent on the quality of the data you put in. In time and attendance terms, it means that you can head off a lot of problems by making sure your data is accurate before you do anything else with it.

Some common sources of garbage data include:

  • Outdated time tracking tools that don’t accurately record or verify the amount of time spent at work
  • Ad hoc overtime arrangements that make additional hours beyond the workday hard to verify
  • Paper records or spreadsheets that need to be filled out manually
  • Unapproved timesheets that go straight to payroll without managerial oversight

Taking a fresh look at how you gather, record, and sort your time and attendance data will highlight any weaknesses. Eradicating these bad habits and making sure you’re working from complete and accurate data is essential. Without that reassurance, all the auditing in the world won’t help you.

2. Flag areas that cause consistent problems

Time and attendance data can look overwhelming, even for relatively small companies. Knowing the areas that need the most managerial attention will streamline the audit process without you losing too much time and energy.

Checking your team members’ scheduled hours against actual time worked is a fundamental part of the time and attendance audit process. It is important to treat it as a high-priority task and not take it for granted or give it less attention than it requires. 

Deviations between hours scheduled and worked will identify areas where workers are underpaid, allowing you to redress the discrepancies before they become a legal matter. Attention to this area can also help you keep a close eye on your labor costs by taking control of your time and reducing any time-wasting activities from your daily schedules.

Overtime hours and break premiums are also important to keep track of, as this is where significant variations can occur. Unlike scheduled hours, which tend to come in specific time blocks, overtime and missed breaks are where you’ll find those awkward variations in pay. These variations can trip you up if not properly accounted for.

It’s good practice to design your timesheet templates to highlight key information, such as scheduled vs. worked hours, as well as breaks and overtime, as clearly as possible. Using tools like Workforce.com’s time and attendance solution makes this process much easier through real-time automation. It calculates the period of time worked, overtime rates, and break penalties, amongst other things.   

The easier you make it to maintain oversight of this information, the less chance it will catch you out.

3. Continuously improve with your refreshed data

The final step in the time and attendance audit to-do list is to make sure you squeeze every last drop of useful information out of your data. You’ve done the essentials; now’s the time to dig deeper and do the math to extract the long-term benefits for your business.

A great starting point is to calculate the percentages and statistics for relevant criteria for each pay period. How many shifts were employees on time for? How much overtime was used? Break down the figures further by team, location, or individual employee to spot the specific areas of your business that are falling short of time and attendance expectations — or exceeding them. This is all useful information that goes beyond the immediate need to check payroll accuracy. With this information in hand, you are in a better position to set up an action plan that will help you enhance your team’s time management skills.

You should also make sure that your newly improved timesheet data is accessible to anyone else who needs to use it. Human error is always a possibility, so not only will this make sure all angles are covered, but it will also ensure that the same audited data can be exported directly to payroll or made available to external auditors for tax and accounting purposes.

A time audit is a tune-up for your business

The most immediate benefit of a time and attendance audit is peace of mind knowing you’re not exposing your business to wage and hour lawsuits and that you’re getting the labor you pay for. But the long-term benefit of performing this task regularly is that you develop a rich library of data that helps you identify cost-saving measures and areas for improvement.

If conducting regular time audits is of interest to your business, you should go ahead and read our guide below on establishing a time and attendance system – this is the first step on a path to better time audits.

Whitepaper: Practical Guide to Time & Attendance Management

With features that deliver everything you need for regular, thorough time and attendance monitoring and integrations with your payroll system, Workforce.com can help your business thrive now and into the future. Sign up for a free trial or give us a call to get started. 

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5 Options to Track Employee Hours

track employee hours

Summary

  • Some businesses get away with tracking time manually with pen and paper.

  • Time clock machines with biometrics, card swipes, or punch-in codes are worth considering in most cases.

  • Automated time and attendance software is the easiest and most comprehensive way to track employee hours.

Without a time tracking program in place, it’s easy to lose track of which hourly employees did what and for how long, leading to mistakes in payroll. 

Inaccurately tracking hours also creates compliance issue landmines. There are stiff penalties and fines for organizations that ignore local, state and federal wage-and-hour and overtime laws. 

It’s a mistake to maintain relaxed standards or have no policy at all to track employee hours. 

Time tracking allows you to accurately see how long any given task takes to complete, and who on your team works most efficiently whether they are hourly or salaried employees. Knowing how much time is spent on certain tasks helps employers to efficiently select how their workers should be using their time.

Still, there are some employers who don’t track employee time because they don’t want to offend employees. Introducing time tracking can be seen as micromanaging or an intrusion on employees’ privacy and shows “a lack of faith” in your own employees.

Instead, they rely on an employee monitoring their own time. Showing trust can build commitment to the company but it can open the door to fraud. 

Before implementing an employee hour tracking solution, answer all questions your employees may have about the process. If employees don’t see the value of time tracking or it is not accurately communicated, your team may not buy in. A key component of streamlining the process of tracking employee hours begins with your honest, transparent communication.

Not tracking employee hours can result in thousands of dollars in lost revenue and invite expensive wage-and-hour violations. Following are five ways that you can track employee hours.

Whether you need to clean up your compensation and compliance practices, track employee activity on a job site, or gauge exempt employees’ time on a project, there are several ways to track employee hours.

  • Manual timekeeping — pen and paper.
  • Time clocks or punch-in tools.
  • Automated time-and-attendance solutions.
  • Mobile apps.
  • GPS clock-ins.

1. Manual timekeeping

If your company is small, using a pen and paper to track employee hours may be a workable option. A manual pen-and-paper system or an Excel spreadsheet at least offers a minimal way to track employees’ time at work. But its limitations quickly become evident as a company grows. 

Manual timekeeping can lead to many difficulties for employers who want to accurately track employees’ time.timesheet, paper time sheet

Managers face reams of paperwork on a regular basis, and it’s easy to misplace or lose timesheets. Employee paperwork also is cumbersome to store, and accessing the documents for recordkeeping or auditing is a challenge.

Manual timekeeping can also make calculating payroll seems like an endless task. If a manager’s time is spent sorting through messy, handwritten employee timesheets and contacting them with questions, they have less time to build the organization through more strategic tasks. 

Correcting mistakes also could hold up the payroll process, which affects all employees.

Accurately tracking employee time becomes an issue. Employees and employers can only add or delete time manually, so they depend on memory to recall who came in when and at what time they took a break or went home.

Wage-and-hour fraud becomes a real possibility. Time theft practices like buddy punching are difficult to detect. Even if several employees falsely change their clock-in time by just five minutes every day, employers can unwittingly pay dozens of unworked hours over the course of a month. 

Of course, the pendulum can swing the other way. Manual timekeeping opens the door to employer fraud. Unsuspecting employees can be cheated out of thousands of dollars in working hours. If and when the fraud is uncovered, wage-and-hour or overtime violations will lead to substantial penalties and potentially steep fines. 

When payrolls are prepared manually, the process is not only time-consuming, mistakes are inevitable and payroll errors are costly. With the trend toward automation, more and more companies are incorporating advanced technology into the workplace to accurately track employee hours, among other functions. 

Pen-and-paper timekeeping simply doesn’t offer the accuracy, versatility and security a digital time and attendance solution will provide. By leaving so much room for error, you risk losing big money for your company. 

2. Time clocks

Time clocks were introduced to track employee time in the late 1800s. While typically more accurate than pen-and-paper timekeeping, time clocks have flaws.

Time clocks vary widely in levels of sophistication. And as with manual timekeeping, time clocks leave plenty of opportunity for time theft and abuse. There is no guarantee that your employees are on the job when they say they are. 

Time clocks also are expensive. They require specialized equipment that is subject to malfunctions and require ongoing maintenance. 

Though card swipes or fingerprint biometrics will provide more accuracy, they are particularly costly, especially when a business owner has multiple locations. Wortime clocks, employee scheduling

However advanced the time clock may be, they’re an impractical choice for a mobile workforce that will routinely work hours at different job sites.

Cleanliness should always be a concern in any workplace. You wouldn’t set out boxes of dirty tissues. Why should a time clock that’s not sanitized after constantly being touched be the lone option for employees starting and ending their working hours? 

The functionality of a time clock is limited and typically cannot integrate with your other workforce management solutions. 

3. Automated employee time tracking solutions

Automated workforce management systems aren’t just for the Fortune 1000 anymore. Solutions exist that are built to support behemoth enterprise organizations yet are flexible and customizable enough to solve a small business’s need to track employee hours.

Companies quickly realize the ways they save time and money once they start using an automated time tracking solution to track employee hours. Timekeeping software becomes your online paper trail that produces accurate, objective accounts of employees’ time and prevents dishonest employees from inflating their hours.

Besides being a strong deterrent to costly time theft, quickly and easily accessing timesheets through an automated solution dramatically improves the accurate calculation of payroll. Time theft is easy to trace and can be quickly solved after you’ve begun to track employees’ hours. You will notice patterns of behavior and can act accordingly.

Before implementing an employee hour tracking solution, answer all questions your employees may have about the process. If employees don’t see the value of time tracking or it is not accurately communicated, your team may not buy in. A key component of streamlining the process of tracking employee hours begins with your honest, transparent communication.

Implementing Workforce.com’s time tracking solution provides your managers with an effortless time-and-attendance system that stays on top of employee productivity, eases administrative tasks and requires minimal training. Managers don’t have to send countless emails or wait for employees to turn in their timecards. The approval workflow handles it, with timesheets attached for easy review and simple approval.

Managers receive notifications when employees clock in and out, when they are running late or must call off at the last minute and when they’re about to incur overtime costs. 

Tracking time with Workforce.com’s automated solution also boosts compliance with regulatory laws. Wage-and-hour and overtime laws vary by state and locality, which makes payroll a calculation and compliance headache. 

Workforce.com’s proactive compliance tools, which were pioneered in Australia to manage the world’s most complicated wage laws, ensure simplified and automated adherence with U.S. federal FLSA, state and local labor regulations. It also includes built-in overtime pay calculations for all 50 states and territories to keep your numbers in compliance.compliance, wage and hour , overtime

Integration with all workforce management systems becomes simple and easy. You control wage costs even further by integrating Workforce.com’s software with your current payroll, POS and HR tools via the cloud for faster, more efficient workforce management operations. 

Verifying and exporting timesheets to your payroll system software is straightforward and fast thanks to the available integrations. Timesheets that have been verified and match scheduling are auto-approved, saving your managers time.

Ultimately, if your employees don’t feel comfortable using your time tracking solution, it will affect their productivity. Since they will use it every day, get them to experience a trial run with you. Building trust early on will amplify buy-in and confidence in your hourly time tracking strategy, making implementation and use simple and error-free.

4. Tracking employee hours with a mobile app

A huge advantage of an automated, cloud-based time-and-attendance system is the capability a mobile employee time tracking app or timesheet app provides to track employee hours. Mobile time tracking makes clocking in and out and sharing schedules easier for all employees, no matter their location.employee mobile app, time clock app

With a time tracker app you can watch who is coming in that day, what time they’re scheduled to start, which location they’ll be working at and their hours on the clock straight from your phone.

There’s no need to camp behind a desktop computer in an office anymore. Your managers get a powerful mobile tool that boosts their ability to track employee hours any time, anywhere. 

A mobile tracker app also empowers managers to follow employees in real time from anywhere and assure that all shifts are covered, update scheduling for any shift and continue tracking when an employee clocks in. Workforce.com’s mobile time clock app helps manage employees’ time and administer digital timesheets, payroll, budgeting and labor compliance reporting. 

Communications become immediately simpler and faster, allowing them to call in someone for an unexpected absence, approve leave requests, and receive automatic notifications on the go. 

5. GPS clock-in

While a time tracking app could be enough for your employees or those who travel between different job sites, you may need pinpoint accuracy to track employee locations. Some time tracker apps include location tracking, providing you with the ability to track enabled devices. 

GPS tracking capabilities help everyone stay in the loop regarding an employee’s clock in and clock out when they arrive at their remote work location. 

Workforce.com’s GPS clock-in takes your time tracking capabilities global. Timesheets automatically sync GPS locations of all clock-ins and outs. Some industries have varying pay rates depending on the job, location and employee’s position. Clock-in data intuitively assigns pay rates depending on the location, saving time and administrative work computing pay.

The time clock app with GPS also includes geofences. Geofencing creates a radius for a location and then it starts flagging shifts in the timesheet approval system, making it easy to track employee hours and identify shifts where someone has clocked in offsite. 

The GPS clock-in app lets everyone clock in from their mobile device and gives managers an edge to track employee hours with the platform’s photo-verified clock-in system.GPS clock in

Tracking employee hours is crucial to your organization’s operations and profitability. It provides key labor cost data, accurate payroll information and a boost in productivity. Regardless of what process you select to track employee hours, use the function that fits your company. But an automated system is scalable to your company’s size and shifting needs and offers the flexibility to stay local or go global. 

Payroll is tired of translating messy, handwritten timecards submitted by employees and managers, and a time clock is an impractical choice for your highly mobile workforce. An automated solution to track employee hours keeps you in compliance and builds your business success. 

Workforce.com’s time clock app automates how your staff clocks in and out. Ask for a free demo today.

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Solving the concern over clean time clocks with a mobile solution

time clock, workforce management, scheduling, time and attendance

There was a time in the very recent past when the biggest worry about a workplace time clock was whether the employee arrived on time to punch in and remembered to clock out when their shift was over.

That has changed in recent months. It is understandable that employees’ anxiety levels are high, and the thought of having to touch an unsanitary time clock adds some unnecessary concern. While the specter of returning to work among customers as well as co-workers frays the nerves of some employees, about the last thing they need on their minds is whether the time clock on the wall was sanitized after the previous employee punched in for their shift.

Ease their fears

There are obvious sanitary solutions for cleaning workstations and countertops. A mobile time clock app is a software solution that allows employees to bypass touching the grimy surface of a physical time clock.

Cleanliness should always be a concern in any workplace. Employers wouldn’t set out boxes of dirty tissues. So why should a time clock that’s constantly being touched be the lone option for employees to start and end their shift?

And don’t be fooled into thinking that a biometric time clock is a cleaner option. That fingerprint left by the previous employee? Do you know where that person’s digit was before tapping the pad? 

It just makes sense to offer employees a mobile solution to cleanly and effortlessly clock in, safe in the knowledge that their employer is vigilant in maintaining a healthy workforce and concerned about accurate time management.

Safe, sanitary and simple

Automating how a staff clocks in and out is not only the sanitary option, it also is the simple solution to cutting back hours of burdensome administrative work each week. With such a keen focus on predictive scheduling laws and regulations, an automated time clock system featuring a mobile app can communicate schedules that help companies remain in compliance. Employers can communicate scheduling in advance and explain the flexibility needs of the business at the same time, creating an open line of communication between employer and employee.

Employer advantages

Buddy punching has existed practically since the invention of time clocks. A time-clock mobile app assures that the correct person clocks in for the right shift through electronic photo verification and unique passcodes.

Automation eliminates repetitive processes that can lead to miscalculating payroll, which is among the fastest and easiest ways to get burned by a wage-and-hour lawsuit. According to Internal Revenue Service statistics, about one-third of employers make payroll errors. The American Payroll Association separately reported that such errors range between is up to 8 percent of total payroll.

A mobile clock-in solution also helps assure that staff is paid correctly according to time worked and is in compliance with local, state and federal laws.

Here are some advantages employers will find by using mobile clock-in software: 

  • React immediately to curb or cut overtime.
  • Automation saves time and effort.
  • Save money as buddy punching is regulated.
  • Avoid costly lawsuits by complying with all regulations.

Employee advantages

Eliminating a physical time clock eases in-office cleanliness concerns. Companies with staff located in multiple locations who are working remotely allows them to clock in via a mobile app whenever and wherever they are. A time clock app is GPS-enabled and works everywhere in the world. Employees can: 

  • Easily and simply clock in and out with one swipe on their phone and not  touch a time clock. 
  • Request time off remotely.
  • View current and past timesheets.
  • Communicate while on the go.

Ask yourself: Do you really want your employees touching the same time clock? It’s a cesspool of germs waiting to pollute your workforce with every touch. Clean up your physical workplace and tidy your workforce management processes by integrating the Workforce.com Time Clock App.