An organization’s workforce represents an organizations biggest asset as well as its largest expense. When a group with so much influence on the production and profitability of an organization is being mismanaged and is not able to properly track and keep their time, there can be sweeping ramifications, including:
Inaccurate Data due to Manual Time Tracking – Because manual time tracking takes place after the fact, it is more likely to incomplete, inaccurate, and inconsistent.
Lost Time and Productivity Re-entering and Processing Payroll – Having employees collect, re-enter, and process payroll information manually can be costly for the organization. An automated system can reduce the time it takes to process payroll to mere minutes each month.
Overspending on Unproductive Overtime – Without an automated time and attendance system, you lack tracking that can provide critical insight on how your employees are using their time.
Over-Burdening One Person or Department – One HR person or department managing the files of all of the active and nonactive employees in the organization becomes cumbersome for that individual and a bottleneck to other departments’ access to information that should be able to be securely shared across the organization.
Weakened Company Culture with Little Employee Engagement – Employees are empowered when they have access to their own information through technology and a highly valued company culture is a major contributor to attracting and retaining top talent, so the repercussions of having a weak culture with unengaged employees can be highly detrimental.
Inability to Comply with Regulations – The data collected and available through your system can help ensure you have the required information to comply with labor regulations regarding proof of attendance. Not having that information on-hand can cause major problems when and if you are faced with an audit.
Disparate and Disconnected Systems Lose Value – Even if pieces and parts of your system are automated, unless they are integrated, you could be losing value by not having the ability to transfer employment, time, and wage data through all the necessary processes.
The flip-side of all of this is the numerous benefits that can be gained by automating your time and attendance systems. To learn what some of those benefits are, download the “Punching in for Improved Workforce Management: The Top Seven Benefits of an Automated Time and Attendance System” whitepaper here.