I remember starting my first business. I quickly discovered how much the average business owner has on their plates. It can be easy to lose track of the importance of things like employee time tracking. Unfortunately, the consequences of overlooking timesheet mistakes can be incredibly expensive.
In 2015, Harvard Business Review published an article on employee time tracking mistakes. They pointed out that employees are very bad at filling out timesheets correctly. Some of the mistakes are deliberately dishonest attempts to steal from their employers. Others are good faith mistakes, but they can be just as costly.
Regardless of the intent, the study found that employee timesheet mistakes cost the economy $7.2 billion every day in lost productivity. The good news is that apps can help employers track employee time much more accurately. An advanced time sheet app can reduce these losses considerably.
Timesheet apps could be essential to the survival of a business
The average business profit margin is a lot lower than most people think. One survey showed that the American public believes that companies have a profit margin of 36%. The reality is that the average profit margin is only 6.5% across over 200 industries.
Even many business owners don’t appreciate how thin their profit margins really are, which is one of the reasons so many companies run into grave cash flow problems down the road. Payroll cost overruns could potentially drive many of them into bankruptcy. Many businesses fail due to employee theft, including time theft. These problems could be prevented with better payroll planning.
Your business cannot afford to lose a substantial amount of money from employee timesheet problems. Whether you are tracking their time for payroll or monitoring time on a given project, it is essential to make sure the time logs are accurate.
Time tracking apps can solve many of the biggest problems. Here are some benefits to consider.
Reducing time theft by verifying the identify of employees that clock into work
For many years, employees have falsified timesheets by getting a coworker to clock them out long after they left for the day. This is one of the most common examples of employee time theft, which is a problem at 75% of companies.
Deputy has a feature that addresses this problem. The app has facial recognition algorithms embedded into it. This means that employers can verify that the respective employee is the one that is actually clocking in or clocking out.
Minimizing burnout by making sure employees don’t miss brakes
Employee burnout is a serious problem that costs at least $125 billion annually. You might be tempted to appreciate employees that don’t take time off. However, they will become less productive, more likely to take sick time later and more likely to make mistakes if they are overworked.
This is another problem that time tracker apps can solve. They notice when employees are taking breaks that are too short or not taking them at all. Employers can try to make sure employees take the time they need.
Provide automatic penalties and rewards
Many companies have penalties for employees that arrive late or inconsistent about clocking in and out. Others offer rewards for employees that fill out their timesheets properly.
The problem is that these policies are difficult to enforce. You have to manually review timesheets. You will often forget which employees need to be penalized or awarded when the time comes.
You don’t have to worry about this when you’re using time tracker apps. They can keep track of any timesheet rewards or penalties for you.
Time tracker apps can get rid of a lot of headaches
Timesheet mistakes create a lot of problems for small business owners. Time tracker apps can help minimize these problems. Employers should use these tools to make sure timesheets are filled out properly and employees are properly incentivized to do so.