Why Is Employee Timekeeping So Important?

Are you paying employees for more hours than they’re working? You may think so because you have an employee timekeeping policy. But without an employee timekeeping system, you can’t guarantee everyone’s compliance.

If you’re unsure of the importance of employee timekeeping, this ought to convince you: 

Employee Timekeeping Has Evolved

There was a time when an employee’s work hours got reported through a manual paper process. There was no overseer to confirm the accuracy of the data reported. As you can imagine, there was a lot of time theft and missing paychecks. 

But time and attendance tracking options have since evolved. Today, most companies use employee timekeeping software to track time and attendance.

What Is Employee Timekeeping Software?

Timekeeping software incorporates employee timekeeping best practices in one application. The simpler software types serve as a timesheet only. Employees log by hand when they arrived and exited work, and time spent on tasks during the day.

More robust employee timekeeping software allows for time tracking. It offers automated timekeeping using the clock on an employee’s computer. Time tracking software captures employee work activities between initial login and final logout.

Benefits of Employee Timekeeping Software

With employee productivity tracker software you’ll see immediate improvements all-around. These are only some of the benefits of tracking software:

• Stops falsified time reporting
• Increases productivity
• Reduces employee tardiness
• Saves on timesheet processing time
• Tracks employee compliance

The Federal Labor Standards Act (FLSA) establishes wage and hour laws. Avoid the risks of a lawsuit by putting in place a time and attendance tracking process. This way there’s no question of an employee’s hours worked, overtime pay, or rest and meal breaks. 

Employee Timekeeping Best Practices

Research shows 67% of employers using automated tracking feel protected from time theft. The other 33% may be suffering from an underdeveloped employee time tracking process. Here are 5 best practices for improving time and attendance recording:

1. Establish Policy

Lessen misunderstandings about time and attendance. Establish company-wide policy detailing work hours, break allowances, and infractions for policy violations. Create a process to ensure all new employees receive and understand the policy. 

2. Train Your Employees

Make sure employees, managers, and HR personnel understand FLSA laws. Register for wage and hour compliance training made easy. Then offer hands-on training so everyone knows how to enter their time.  

3. Collect Necessary Data

The FLSA details all information you need to collect from employees for payroll. Make sure to capture those data fields in your employee tracking system. Mistakes on the back-end most likely result from front-end data entry errors, said Lisa N. from twiftnews.

4. Get Rid of Manual Timesheets

Announce a deadline for converting to an automated system. From that point forward, only process employee time and attendance via timekeeping software. Track system performance and make the necessary updates.

5. Integrate Your Systems

The importance of collecting employee timesheets is to ensure pay distribution. Integrate your timekeeping and payroll automated systems. Doing so makes Human Resources’ job a lot easier. 

Employee Timekeeping Is Important

It’s easy to violate FLSA laws, putting your company at risk. Record your employees’ wages and hours using employee timekeeping software. Time is money and you shouldn’t pay for services not rendered. 

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