25 Apr Why you should be managing, monitoring and measuring your employees’ time and attendance
“What gets measured gets managed” is a principal that is often applied to business situations. The quote is generally attributed to management expert Peter Drucker although it has also been attributed to Tom Peters, Edwards Deming and Lord Kelvin amongst others. Regardless of who said it, the message is pretty clear: by measuring something, you get the information you need to make better and more informed decisions and in turn improve your business operations. Here are the top reasons why you should be measuring and monitoring your employees time and attendance.
Every minute of everyone’s time costs
As an organisation you should be capturing every minute of your employees’ time. Without this information you cannot make informed and strategic decisions. For most organisations 60% to 90% of costs are labour costs and therefore offer the biggest opportunity to drive operational performance and profitability. Areas such as unapproved overtime, absenteeism, disability benefit schemes, questionable sickness absences, lates, finishing early, long breaks and unproductive employees, all boost your true workforce costs. Without an automated system to capture this information these expenses are not easy to identify and more importantly, quantify or qualify. The associated administrative costs of tracking these additional expenses also contribute to increasing workforce costs – yet are usually overlooked in attempts to control or reduce expenses.
Reduced Payroll Costs – Overpayments
A reduction in overpayments for work not done by just 15 minutes per employee per day would result in substantial savings. Employees can be overpaid by as much as 30 minutes per day due to lateness, finishing early, long lunches, unauthorised overtime etc. By installing an automated Time & Attendance system you can reduce these overpayments, by recording only hours physically worked by each employee and using this information for payroll purposes.
Effectively managing employee absenteeism
As we are all very aware absenteeism is one of the most persistent obstacles to productivity and efficiency in businesses today. It can cause overtime, reduced service levels and a decline in employee morale amongst employees who are expected to cover for an absent employee. Ultimately, absenteeism is a huge financial drain to an organisation with the indirect costs often exceeding the direct costs. Time and attendance software can assist you to track, manage and in time reduce costs associated with employee absenteeism.
Time and attendance solutions enable organisations to improve productivity and quality by making informed real time decisions based on actual data. They give senior management real-time visibility and improved control. They can deliver a complete picture of employee efficiencies and trends for the entire organisation over extended periods of time and more accurate reporting of employee hours and payroll costs. It can assist you to ensure policies, procedures and rules are consistently and fairly applied across your organisation.
Compliance with working time legislation
Wherever you employ staff, ensuring legislative compliance by managing, recording and tracking working hours has never been more important. Compliance with government rules and regulations is an international issue. In Europe it comes under the EWTD (European Working Time Directive). In the United Stated the rules are defined by the FLSA (Fair Labor Standards Act) and in Canada it’s the ESA (Employment Standards Act). A good Time & Attendance Solution can automate this process for you and ensure that your organisation is always 100% compliant.
While we know you can’t measure everything in business, employee time and attendance is definitely an area that can be easily managed and measured with the help of an automated time and attendance solution.