Did you find last week’s blog useful. Where here’s part 2 on how Biometric Time Clocks can reduce payroll costs.
How Does a Biometric Time Clock Help My Business?
Biometric clocks provide many benefits. First off, they reduce labour costs by preventing employee time theft. Secondly, they reduce payroll errors. Thirdly, they enhance security. Lastly, they simplify compliance.
How Do Biometric Clocks Prevent Employee Time Theft?
Employees steal time in a couple of different ways. Firstly, with paper timecards, it’s easy for an employee to add a few minutes before or after every shift. (‘My manager doesn’t know the exact time I arrived.’) These minutes add up. Consequently, even a small employer can lose up to four hours a week per employee.
Secondly, and perhaps more damaging, employees also commit time theft with ‘buddy clocking’ or ‘buddy punching.’ This is when an employee clocks in for an employee who isn’t at work. In some cases, the employee eventually shows up. Yet there are multiple cases of employees being paid for entire unworked shifts. The ‘buddy clock’ scheme prevents the absent employee from receiving a tardy or an absence. Consequently, it also ensures that their paycheck isn’t reduced.
How Do Biometric Clocks Improve Payroll Accuracy?
Now that we’ve talked about payroll problems caused intentionally, let’s talk about unintentional errors. People also make payroll mistakes unintentionally. These include math errors on paper timecards, data entry mistakes, and lapses in memory.
To illustrate, let’s consider how many people touch each timecard with a traditional system. Up to three: 1) the employee, 2) the manager, and 3) an HR or payroll staff member. Clearly, each manual step is vulnerable to human error. Furthermore, when a timecard error isn’t caught and corrected, it triggers an inaccurate paycheck. When the employee tells the manager or HR team about the error, they have to issue another check. In addition, they may need to fix inaccurate PTO calculations. That isn’t all, the error could affect overtime benefits.
Consider also, that if a tipped employee doesn’t get paid accurately, it may put you in sketchy minimum wage territory. Certainly, in all cases, it’s a hassle for the employee, manager, and admin team.