For years the standard in Time & Attendance has been the manual punch clock.
The problem with this scenario is that it takes to long to execute in its entirety and errors in calculations are frequent. By switching to an automated system you can dramatically reduce the time it takes to process payroll and eliminate human calculation errors. A standard automated system scenario is as follows.
Managing employee time and attendance is a daunting task for employers. Frequently the process is manual, with managers completing paper time sheets and attendance forms. Even though manual time entry systems help to restructure the daily tasks, eventually data entry is required to be put into a payroll system. Access to real-time workforce information like late arrivals, hours worked, pay information is non-existent for both employees and managers. Not to mention that incentive calculation, retroactive adjustments, overtime and other complex processes can complicate matters even further.
Errors in time tracking and submission do more than cost you time. Because employees don’t always report payroll errors (especially when their paid amount is higher than expected) these errors also reduce profitability. For that reason, pay rule applications can significantly impact labor costs. Combined with other shortcomings of manual zero to gross pay management, companies can sustain gross payroll inflation of 1 – 6%.
Time & Attendance systems that automate 100% of an organizations pay rules, accurately track employee hours and automatically handle overtime and incentive allocations can dramatically reduce payroll.