Most organizations start looking for time clock software after they discover an employee has been padding hours, or the business grows to the point that manually collecting and calculating employee hours becomes error-prone and/or time-consuming..
Churches may not need to worry about these two issues; however, there are many compelling reasons why you should be tracking your employees' time. Here are four primary reasons why.
No. 1: It's the Law
Tracking employee time is not optional. All organizations (including churches), are required by the U.S. Department of Labor (DOL) to track employee hours and keep time sheets for a minimum of three years. This applies only to nonexempt (hourly) employees. If employees are salaried, then you are not required to track hours or maintain time sheets.
There has been a 77% rise in lawsuits tied to wages and time since 2004
If an employee suspects he or she is being shorted hours on his or her paycheck, the employee can file a complaint with the DOL, which many times will result in an investigation. In addition to complaints, the DOL may target an organization for a myriad of reasons, here are a few...
- Low wage industry - because many employers take advantage of low-wage employees;
- Rapid growth or decline in an industry; and
- Random businesses in certain geographic areas.
If you're selected for an investigation, the investigator will show up, present his/her credentials, and explain how the investigation will proceed. You will be required to provide payroll and time records dating back as many as three years for each employee. Employees will be privately interviewed, and the investigator will meet with the employer to discuss any violations and repercussions. Fines may be assessed, and if any back wages are owed, the employer will be required to calculate and pay the employees.
No. 2 - Time Tracking Systems Are More Accurate
Accurately tracking time should be a primary goal of anyone in charge of payroll. You want to get your team paid on time and for the proper amount of hours worked. Errors in payroll can generally be attributed to poor time tracking or a lack of technology in tracking hours.
Studies show that 82 million U.S. workers have encountered payroll errors -- don't be part of this statistic.
No. 3 - Keep Everyone Honest
Honesty is a keystone to building strong relationships both personally and professionally. Implementing a time clock system adds a layer of transparency where employees and church management have a common area to view PTO and worked hours.
We expect church employees to hold themselves to a high degree of integrity; however, in the general public, time theft can cost businesses as much as 7% of their gross yearly payroll, according to the APA.
Sometimes, when adding time tracking for your church staff, your employees may be resistant. They may believe that there is some foul play going on or view time tracking as an intrusive big-brother type approach to monitoring their every move. Take time to meet with everyone and explain that this is not the case. Explain that tracking time is required by law and exists to protect the church and its employees.
No. 4 - Tracking Employees' Paid Time Off (PTO)
Adding a time tracking system is more than tracking hours worked -- it's also a great way to track hours not worked. PTO hours, such as vacation, sick, and holiday time off. Most churches will have a PTO policy where staff either accrue hours over time or are allotted hours for the year.
Without a proper PTO tracking system in place, managers may have to rely on memory, handwritten notes, or spreadsheets to track time. While this is possible with the aforementioned techniques, it will be very error-prone and time-consuming.
Modern time tracking systems can handle PTO accurately and efficiently. There will be a ledger of allotted/accrued time along with the used and remaining hours for PTO categories (sick, vacation, holiday, etc.). Employees can request PTO online or using phone apps,and church staff can then approve or deny the request. Employees will also have a portal to view their PTO balances.
Your Next Steps
Next, you will want to do some research on exactly what features your church wants and/or needs. Here is a list of basic features that all modern time tracking systems should have. Use these to create your own checklist.
- Online (web based);
- Phone Apps for managers and employees;
- Automatic timecard calculation;
- Automatic overtime calculation;
- PTO;
- Mobile location controls (geofencing, IP, and device authorization);
- The ability to export to your payroll system or run payroll in-house;
- Fingerprint (biometric) employee clock in/out; and
- Church or nonprofit discount.
OnTheClock offers all of these features and more. Check it out today and start your free 30-day trial! Come see why 180,000 individuals utilize OnTheClock to manage their time each and every day.
