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Do Electronic Time Clocks Help Decrease Labor Costs?
Bob Cote
August 1, 2020
One of the biggest problems for a manager is keeping labor costs under control. Every year, time tracking errors result in lost revenue due to time spent resolving them or the costs of failing to do so. However, the digital age promises a neat solution for the perennial problem of organizing time and attendance. Electronic time clocks are nothing short of revolutionary in the way they fight time theft, improve efficiency, and make the workplace better for everyone.
How Do Electronic Time Clocks Work?
Modern electronic time clocks aren't just traditional time clocks that have been digitized. Rather, they use the proliferation of smartphones and automated computing solutions to dramatically streamline the whole process. Employees can clock in by calling or texting a certain number or by using an app, and GPS functionality ensures they're on-site. But that's just the start: the suite of software supporting this mechanism provides time clock data to management in real-time while automatically correcting common errors. There are many practical benefits to an electronic time clock system that doubles as time management software.
Fight Time Theft
The first interest in the eyes of many managers will be fighting time theft. Time theft is the result of intentional actions on part of employees, but it also occurs thanks to human error. While many cases are easy to resolve, those cases that slip through the cracks add up and amount to significant losses.
End Unnecessary Overtime
Employees sometimes clock out late for one reason or another. When this adds up to overtime, it can end up being an especially egregious form of time theft that may result in cumulative millions of overpayment. Time clocks can enforce clock in/clock-out times, avoiding unearned overtime payments.
Resolve Invalid Clockin
People clocking in when they shouldn't be on-the-clock requires great attention from administrative personnel to catch. Time tracking software automatically records clock-in data in real-time and checks it against the schedule. As a result, it detects and resolves inconsistencies or directs the information to management.
Mitigate Buddy Clocking
Every manager knows and loathes buddy clocking, the process of one person fraudulently clocking in for a tardy or absent coworker. This can be difficult to detect when using traditional time clocks and your business might suffer untold losses in unearned wages, lost labor, and other costs as a result of it. However, internet time clocks can use photo recognition, GPS phone tracking, and more to mitigate or even eliminate buddy clocking.
Replace Missed Clockout Punches
Mistakes are more common than malice, and everyone has forgotten to clock out from work now and then. Additionally, a clockout may not be recorded due to mechanical or human error. The need for management to intervene and ask about missed clockout punches days or even weeks after the incidents can only compound the wasted time and confusion resulting from a simple mistake. Digital time clock software can easily detect this sort of anomaly and correct it, saving time, money, and stress for employers and
While enforcing time and attendance will be the first concern of many managers, the real value of electronic time clocks may lie in their ability to resolve error and improve efficiency.
Improve Operational Efficiency
Eliminate Long Lines and Wasted Time
After a long day at the office, factory, or any other workplace, employees want to go home. They don't want to stand around in long lines, and you don't want to be obligated to pay them for those minutes spent standing around in long lines. By enabling employees to clock in and out from their phones, you'll save money and boost morale.
Provide Transparency and Consistency
Personality conflicts can never be completely avoided, and some employees may develop a sense of persecution or believe they're being treated unfairly. This is helped along by the human-driven nature of old-fashioned time and attendance tracking, which can make errors of their own. However, technology is quick, efficient, and completely impartial, which empowers management to resolve problems with precision and without encouraging any bad feelings between labor and time tracking personnel.
Relieve Labor Burdens
Every little time clock mistake costs your business something. If the administrative side of your company catches an error, it still took time and effort to do so. Introducing automation software will relieve these burdens and allow labor hours to be redirected elsewhere, boosting efficiency and guaranteeing ROI.
Easily Act on Data
When simple errors may go undetected for weeks, our memory becomes much less reliable and employees may not remember an incorrect clock-in or other sorts of mistakes. When time theft is intentional, rather than a mere mistake, forgetfulness also makes a strong alibi. Immediate access to automatically organized time data allows for management to address discrepancies on the same day.
Choose SubItUp
There is a wide array of options on the market when it comes to choosing an electronic time clock system. SubItUp is one of the best you can choose, thanks to an array of features such as:
- Real-Time Data
- Offline and Online Functionality
- GPS Verification for Remote Employees
- Scheduled Shift Enforcement
- Timesheet Auto-Reconciliation
- And much more
Real-time data flow is standard, but the offline functionality of SubItUp is extremely useful. As soon as service returns, it automatically updates the data stored online. That applies to worker clockins/clockouts and the system itself. This key feature means that SubItUp is a viable solution even in locations with poor cell reception. The GPS verification feature ensures that even remote working companies can use SubItUp as an electronic time clock solution. This versatility is a large part of what makes SubItUp an excellent choice. Whether your company is shifting to remote work in the time of COVID or you want to cut time theft losses, get in touch with us.
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