In a study conducted by AffinityLive, it was found that inefficient work practices result in a loss of over 50 million hours for the U.S. economy. It translates to a daily financial setback of approximately $7.4 billion. Apart from the clock in clock out time stamps, manual time tracking gives very little insight into how and where employees are spending their time. Therefore, an automated time tracking app is the investment your business needs to make in 2024.
The same study further suggests transitioning from infrequent timesheet updates, such as weekly, to more regular updates daily or better. It could potentially reclaim $52,000 per professional annually in billable time.
Moreover, customers today expect strict adherence to delivery timelines, shipment tracking, and personalized services. A recent survey highlights that 33% of individuals are inclined to switch brands following a single negative experience. A staggering 92% are likely to do so after two to three unfavorable interactions.
Businesses need to refine their performance to provide an exceptional customer experience and retain clients. Achieving this would be nearly unattainable without leveraging technological innovations like employee GPS and time-tracking app.
In this blog, we will discuss the cost you pay with manual time tracking, and how automated time tracking can save costs.
The Cost Of Manual Time Tracking
Manual time tracking constitutes a traditional approach to tracking work time– using paper timesheets, digital spreadsheets, or physical timecards. In this system, employees take the responsibility of recording their worked hours by filling in details or using physical time-punch methods.
Subsequently, managers and employers review the information entered manually, ensuring its accuracy, and then proceed to approve the data for payroll processing.
Time theft: Companies are experiencing a loss of as much as 7% of their yearly payroll due to time theft. According to a study, the occurrence of just two payroll errors can prompt 49% of employees to consider leaving their jobs.
By incorporating time tracking app with attendance management, your paychecks will automatically reflect the precise working hours tracked by the system, minimizing the likelihood of payroll discrepancies and enhancing overall employee satisfaction.
Extended breaks: Extended breaks, a common form of time theft, occur when employees take longer than permitted breaks for meals or other activities. For instance, consider an employee who consistently takes 20 extra minutes for lunch every day, resulting in a monthly loss of 440 minutes.
Implementing time tracking with geofencing can help curb this by ensuring employees are taking breaks within specified locations and durations, preventing excessive time theft.
Stationary Usage: Employee time tracking app saves costs by replacing paper timesheets and time cards. Although the savings may not be substantial individually, they accumulate significantly, especially in large organizations with numerous employees.
As of 2021, estimates suggest that paper worth about 1 billion trees is thrown away every year.
Manual Errors: Errors are a common occurrence when manually calculating time clock entries. Whether it’s illegible timesheets, mistakes by payroll staff, or inaccuracies in time calculations, mistakes are bound to occur.
How Does Automated Time Tracking App Save You Costs?
Data Accuracy and Informed Decision-Making:
Instead of relying on guesswork, time tracking app provides actual data. This is crucial for making informed decisions about your business, such as resource allocation, attendance patterns and trends, etc.
Insightful Project Management:
Time tracking app offers insights into tasks and time allocation, resulting in better project management. For future projects, having past data allows for precise estimates, reducing the underestimating or overestimating time requirements.
Accurate Billing and Payroll Processing:
Time tracking facilitates precise billing by maintaining records of billable and non-billable hours. This accuracy extends to processing data for payroll and invoices, reducing errors, and streamlining financial operations.
Legal Compliance:
By tracking time, businesses can avoid legal issues related to payroll taxes. Penalties issued by the IRS in the past have amounted to a massive $4.5 billion. Accurate time tracking minimizes the risk of labor law violation.
Clock in clock out apps are a valuable tool for businesses with hourly employees. It aids in compliance with overtime payment laws and the Fair Labor Standards Act (FLSA). It further ensures precise tracking of employee hours, including overtime, and offers customization options for overtime settings to align with specific state regulations.
Prevent Overworking:
Time tracking aids in preventing overworking, and promoting employee well-being. Well-rested employees are likely to perform better and maintain efficiency, ultimately resulting in client retention.
Save Fuel Costs:
Transportation companies saved 10 million gallons of fuel annually by reducing each route’s mileage by 6-8 miles. This was done by avoiding left turns, which are deemed inefficient and unsafe due to opposing traffic flows.
This case highlights the effectiveness of adopting a time tracking app with mileage tracking features to optimize routes. It ensures employees take the quickest and most efficient paths and ultimately leads to substantial reductions in fuel consumption.
Conclusion
From curbing time theft to optimizing routes and minimizing environmental impact, employee time tracking app offers multifaceted benefits.
Effective time management is crucial for businesses looking to enhance employee productivity, reduce costs, and ultimately boost profitability.
The best time tracking app empowers businesses to make informed decisions, streamline operations, and create a more profitable and sustainable future.
Precise figures for the potential savings in your company vary on factors like size and workforce. The discussed factors can help you calculate potential cost reductions or adjust your budget for improved profitability.
To optimize time tracking effectively, it’s best to engage in daily and consistent tracking. When selecting the best time tracking app for your business, look for software that can be configured to meet your company’s specific requirements.