Curtail Labor Costs Through Exact Timekeeping
Running a business is expensive, and cutting out unnecessary spending is integral to maintaining profitability. Anywhere the rough edges can be trimmed is an area where they should be trimmed, and one of the best ways to start is by exact timekeeping. When are your employees arriving at work, and when are they leaving? You shouldn’t be relying on estimates, you should be relying on exact numbers.
Consider the following: five minutes a day of over-estimated hours on the part of an employee becomes twenty-five minutes during a conventional work week, and one hundred minutes by the end of the month. That’s one thousand two hundred unnecessary minutes in a conventional year, or twenty hours. If you’ve got a team of forty employees averaging five minutes’ gray area around their shifts, you’re looking at eight hundred hours a year that is utterly wasted. At only ten dollars an hour, that’s eight thousand dollars you’re just throwing away every year. Can you really afford to just burn that much money on an annual basis?
Additional Savings That Come From Exact Timekeeping
Consider the time taken in the conventional assessment of payroll. A smaller business may have to consolidate this task to management personnel, while a larger operation may have an entire department devoted to accurate tabulation of employee hours.
Even if you only spent five hours a month doing payroll, that’s still sixty hours a year—and what is your time worth? If one of those on staff is worth ten dollars an hour, wouldn’t someone in management be worth closer to one hundred? If this is an equivalent value, then combined with lost funds through lax payroll, you could be losing over ten thousand a year in this area.
How To Monitor Employees, Keep Exact Time Records, And Curtail Unnecessary Expenditure
As computational technology has caught up with imagination, certain functions have become possible which vastly reduce the need for losses like those outlined earlier. Employee timesheet software is affordable and comprehensive, allowing businesses to do with a few clicks of the mouse what may have taken entire departments a week to accomplish in the past.
Additionally, when using such software, you have the ability to keep an eye on employee work habits. Who is working harder? When are they truly on the clock, and when are they “milking it”? Many new software options incorporate mobile functions which allow clocking-in to happen automatically via cellphone when an employee enters the workplace. Through this technology you can keep an eye on them via GPS, the end result being an up-spike in honesty among employees. Additionally, this technology can help you monitor employees working remotely.
An Extra $10,000+ Every Year
Depending on the size of your business, a simple measure like changing the way timekeeping is managed in your organization stands to save you thousands of dollars. In Payroll alone, you can expect upwards of $5,000 in man hours saved yearly; and that in a small organization with only a handful of employees. This savings does not include collateral benefits which will come from more exact timekeeping and expanded employee honesty.
While the savings may not come to you in the form of a neatly endorsed check, they’ll make themselves evident in expanded resources. Like sharks that cannot continue to live unless they swim, a business requires growth or it will eventually fail. From inflation to politics, natural disasters, and competition, there are endless obstacles that require successful progress to overcome. When you add into the equation increased regulations and taxation, it becomes incumbent on any savvy business owner that the most financially-efficient operations must be sought.