7 Reasons You Need an Employee Time Clock
DECEMBER 13,2017 | MANAGEMENT | By SARA KELLY
DECEMBER 13,2017 | MANAGEMENT | By SARA KELLY
What’s your current method of recording employee hours?
Chances are it may be a sheet of paper in the business that employees write on by hand on shift (if they remember) and you collect it end of the week. Then pay day comes around and you hunt for a scrappy, dog eared bit of paper with missing entries and unreadable scribble all over it. Not fun.
There is a better way…implementing a digital clock-in-out system in the workplace.
Here are 7 reasons you should consider using a time and attendance or clock-in-out system in your business:
1. Time Saving.
“Simply implementing RosterElf’s clock-in-out system has saved me 5 hours a week in chasing up paperwork and manual calculations. Never looked back.” Mark Harris La La Looch.
Think about the time from end to end each week. Locating the paper records, interpreting poor handwriting, chasing up missing entries or having to call employees for clarification on overtime, manually calculating hours and then recalculating the hours based on your enterprise agreement or award followed by a painful process of manual entering into your payroll system. It’s big. In fact, manual timesheets waste about 3-5 hours a week for most small businesses.
Clock-in-out systems like RosterElf eliminate all this simply mounting a tablet in your business and downloading the clock-in-out app.
2. Human Error.
Let’s face it. We all make mistakes. This is especially true when faced with all the conflicting tasks of running a business and then having to find the time to quietly sit down and review paper timesheets.
Chances are if you underpay one of your employees through error you will hear about it and the result is needing to spend more time going back, review your calculations and then making a manual pay adjustment. All valuable time out the window.
Even worse is when payroll errors are in favour of an employee and you overpay by accident. In this scenario, the employee may or may not speak up but the most likely outcome is profits going down the drain.
Because RosterElf’s time and attendance system does all the calculations for you, human error and the resulting time and money impacts can be removed completely.
3. Time Theft.
Whilst we would all hate to think our employees would intentionally cheat us, it happens.
Because RosterElf’s time and attendance tablet is mounted in the business and requires their unique password and photo proof, you know the recorded start and finish times are accurate and have not been the result of employees clocking in when they aren’t at work, or asking their friends to clock in for them if they’re running late.
“As a business owner with multiple locations I was trusting my employees to be honest as I wasn’t always there. Whilst the majority were honest, after implementing RosterElf, I found labour cost reduced about 5% immediately which I can only interpret is due to a few little porkies being written down by my employees on manual timesheet in the past.” Karel Radford, Little Bean.
4. Save Money.
Time is money. The time saving benefits explained above result in you spending that 4-5 hours a week on activities to grow your bottom line, be it product or menu development, marketing, training or cost saving strategies.
But on top of this, most clients find that there is a REAL dollar figure reduction in payroll immediately after implementation of a clock-in-out system. About 2-3% on average! Staff are held accountable for extra hours and any time theft issues are removed.
“I was shocked in the savings to the bottom line after implementing RosterElf’s time and attendance system. Took 5 minutes to setup and is saving me about $4,500 a year in what I can only assume was lots of little chunks of time theft in the past.” Travis Lane, Scoop Icecreamery.
5. Identify Issues.
When payroll costs blow out, finding out why is often a challenge. But with clock-in-out systems you can visually see rostered vs actual clock-in-out times including variances by shift, employee and day.
Normally you will find particular employees are the problem and can quickly rectify before the impact on your bottom line is too large.
6. Award Interpretation.
Ok, even if you manage to use paper timesheet and can calculate total hours for each employee for the week, for many business the next step is to manually split hours based on your particular award or enterprise agreement.
So Joey may have worked 28 hours but then this has to be split into 18 ‘Ordinary’, 6 ‘Saturday’ and 4 ‘Sunday’. Multiply this task for more than 10 employees and you are finding more precious time going out the window as well as opening yourself up to errors.
Time and attendance systems like RosterElf manage award interpretation automatically for you. Once rules are setup, your payroll report will have employee hours split into award categories in about 30 seconds of approval. You can then send straight into Xero using our API or download a format for MYOB, Sage, Micropay or our range of other providers.
7. It’s The Law
Governments in recent years have tightened up the record keeping obligations regarding employee hours worked. By law, employee time records must be kept and must be accurate. This means if your using manual timesheets, you will need to file away years worth of paperwork just in case.
Fair Work Australia has fairly firm guidelines with harsh penalties for non-compliance: Fair Work Australia Employee Records
Electronic Clock-in-out systems solve this obligation easily as full work history is kept in the cloud. If an employee has a pay query from 2 years ago, with systems like RosterElf, business owners can simply review the clock-in-out data including start time, breaks, finish time as well as view photo proof and employee comments.
For just $1 per employee rostered per week, implementing a time and attendance system like RosterElf is a smart investment all around. You will save a heap of time and money through efficiency, accountability and automation of data.
For a demo of how RosterElf’s clock-in-out works, check out this video: CLOCK-IN-OUT DEMO
Founder/CEO @ RosterElf
Magically Simple Time and Attendance
RosterElf is built with you in mind. Our online staff scheduling tool handles all your employee scheduling needs.
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