Improper tracking methods can lead to a host of issues that can certainly cost you money. These improper methods can lead to loss of income, mismanagement of resources, and even expensive court litigation.
Are you using manual tracking methods like a spreadsheet or worse, pen and paper? Manual tracking can cost you a ton of money over time, as it can fall victim to any of a number of problems and errors.
Human errors alone can account for the majority of tracking issues that can cost you money. A keying error or a little bad math can upset the schedules of everyone on the payroll. It can change allotted paid time off, or cause someone to receive payment for hours they didn’t actually work.
What happens if there’s a flood, fire, or theft? Paper records can disappear in an instant. Without that proof of time entry, you can actually end up in court over unpaid wages. Alternatively, you may pay someone more than you should for time off they didn’t take.
Unnecessarily Long Payroll Operations
Manual entry also means someone will have to spend an exorbitant amount of time combing through the entries to put together someone’s check. The more employees you have, the more time someone will have to spend on this process. You can save time and money by implementing something even slightly more automated.
Who keeps track of sick leave and vacation days? You should have a dedicated system in place for this that allows employees to schedule and track their own time. This can cut back on the possibility of costly disputes, expensive mistakes, and “he said, she said.”
You should empower your employees with the knowledge of how tracking works, why it’s necessary, and what role they should play in the process. They should have the ability to see their time logs so they can match any suspicions of non-pay they have with the time system.
You must handle protected leave appropriately if you want to avoid costly problems. Incorrect tracking of leave can lead to undue disciplinary action against an employee; such events can also lead to litigation. There’s a whole host of protected leave types, and it’s very easy to confuse them when tracking.
It’s just as important you make employees aware of how the different types of leave available to them work. If you’re using manual tracking methods, mismanagement and mistakes involving leave can become an expensive headache for you.
Do you use one tracking method for your regular employees, another for your contracted workers, and an altogether different one for temporary workers? Splitting everything up can cause you a lot of problems that affect your bottom line.
You should have everybody under a single system. Even when someone isn’t technically your employee, you should log their time right along with everyone else’s. This will serve to cut back on mistakes, and make the payroll process easier for these employees. It can also help you to stay in compliance with labor laws.
Improper tracking can cost you in many ways. A dedicated workforce management system can help you keep track of things like overtime, sick days, vacation days, and logged hours. A dedicated system can help you save money by replacing many improper tracking methods with a reliable tracking solution.