Manual Time and Attendance systems are still being practiced within a huge number of companies. This traditional system requires the employees to fill in their time sheets manually, for example- from 9:00 am to 5:00 pm on all days of the week.
What all costs does a company pay when they use a manual system of Time and Attendance tracking? Let’s learn here-
- Manipulating time records or Time thefts
Whether or not the employee was there in office on time, i.e. at 9:00 am and nevertheless he/she left an hour early for the day, the employee will still fill his/her timesheet with details having- Work Timings= 9:00 am to 5:00 pm.
On confrontation, employees can simply deny saying “I do not remember the time I entered in office last Monday”. Nor will anyone else monitor a particular employee’s working hours. This means there is absolutely no proof of the actual records of any employee. Imagine the difference it makes for a company who employs 50 employees and every employee steals just as less as half-an-hour in a week.
Since there is no tracking involved in the manual system, companies keep paying employees for the time they didn’t spent working.
- The possible human errors
All the time sheets of employees have to be compiled together for payroll processing, compliances and finally subjected remuneration. When all this is done manually, the chances of human errors creeping in maximize.
According to several studies, these human errors can be estimated between 2 to 8% of the total payroll cost. Mistakes are easy to make, even when using a calculator. If you calculate 2% of the total cost of payroll in a month, quarter or year, the resultant amount turns out to be really big.
- Proxy Attendance
This is the biggest factor that can add to your expenses as a result of manual time and attendance systems. Because there is no defined way of identifying if an employee is really present at his/her workplace (especially in large sized companies), employees may develop a habit of fraud by asking colleagues to sign/ fill time sheets on their behalf.
As they are confident about no one figuring out about these minor actions, companies tend to pay out salaries for free. Studies show that almost 20 to 25% of employees admit to proxy attendance.
Clocking the in and out times of employees doesn’t mean snatching away their liberty or a pleasant working environment. It only means that companies can plan their expenses better and optimize their resources.
Employees can certainly combat and win the war against the time being wasted or the unwanted costs being incurred. Automated Time and Attendance systems like PayWheel can be adopted to track precise working hours and integrate with devices like biometric machines etc. know more on Time and Attendance Management. We help you cut costs so that you can put the same in business areas that bring more revenues with our payroll software.