Why Tracking Your Labor Hours Matters
In a perfect world, all employees would document their actual hours worked, without having to clock in. Unfortunately, without a proper time and attendance system, your company could be losing thousands of dollars a month (depending on the size of your workforce).
When you have several different departments, especially with varied locations or field workers, it can be nearly impossible to keep track of hours. In order to make certain your company earns a profit, you need to be able to job cost expenses for your projects. And, one of the largest costs is always going to be labor.
The System Pays for Itself
Before you get too worried about adding another expense to your budget, take a breath and relax. Even smaller companies can now afford basic systems, which retail for less than $1,000. The time and money you save in not having to manually enter and total the hours racked up for each job, will far exceed the price of a time and attendance system.
Additionally, these systems calculate the benefits your workers are accruing for the hours worked. Once you have become used to real time tracking, it will assure your future project proposals are more on the mark, and increase your profit margins. And, for those jobs which you bid out as ‘cost plus,’ it’s a great way to track exact figures, without adding additional administrative hours (at your own cost) to compile the reporting needed.
It’s a User-Friendly Process
The software will be intuitive and easy to use; compiling total worker hours along with their information, and adding everything into your database. Manager approval is entered, once they have time to review, and the data is then processed and reports are available.
Your workers can either login with a card or unique number, and the systems allow phone input which is quite useful for your field offices.
Important Features to Consider
Compatibility - Make sure the system works with your current infrastructure - just meeting the operating system requirements is insufficient. Have the provider demonstrate that the software is a good fit with your IT applications and input data devices; as well as with the payroll vendor and human resource policies you currently have in place.
Security - The providers will generally offer encrypted file transmission along with added security measures. Again, have them demonstrate how your system will elude any tampering from the inside or external sources. A biometric device (which checks finger or handprints against the employee’s actual records) will eliminate the ability for someone other than the employee to clock in their time.