If you are a small business and have employees then you understand how time cards can be intimidating. Making sure that employee’s hours are accurate while keeping records of who worked when and who didn’t is stressful for a small business to deal with. Put an end to this by exploring the great technology of an online time clock system.
What is a time card
Time cards are what businesses and companies all around the world use as a way to properly track an employee’s total hours that he or she worked. Time cards can range from a time punched onto an actual card, or handwritten on a piece of paper or a web based system that is done on a computer or mobile device.
If you are an employer that is tracking your employee’s time through a traditional punch clock or handwriting them on a sheet of paper, then chances are that you are punch rounding. What is punch rounding you may ask? Punch rounding is when an employer rounds an employee’s time up to the nearest 15 minute mark. This is usually done to make time tracking simpler for a business when they lack the technology to add up time to the precise minute. The same can be said when it comes to punch rounding down for when an employee starts their shift late.
What many employers fail to realize is this method becomes extremely costly over a period of time. Say that an employee punches in 6 minutes late and you round their time down.That is 6 minutes the company just lost to begin the day. Now, let's assume the same employee punches out 6 minutes before the next quarter of an hour and you round their time up. That is an additional 6 minutes lost which puts a total of 12 minutes per day of paid time that was never worked. If that person works 5 day per week then you would simply multiply the 12 minutes by 5 days to see that 60 minutes, or an hour, of time was paid to an employee when they did not work for that hour.
It doesn’t stop there. Think about how many week are in a full year. One hour of time per week multiplied by 52 weeks (total of weeks in a year) is 52 hours of lost time for only one employee. If this employee makes $17 per hour then your company lost a minimum of $884 for the year. This number may not seem very high, but remember this is just one employee that we are talking about. What’s that you say, you have 7 employees? Well, take $884 and multiply that by seven and you will definitely see how much money you are wasting by using the punch rounding technique when it comes to tracking your employee’s time.
Every week when you look at your company’s time cards you cringe a little and you don’t understand why. Like most businesses, you are on a budget and the above examples may be enough to help you understand the importance of accurate employee time tracking.
Use an online time clock
If you would like to start tracking your employee’s time accurately and with ease, then you may want to consider trying an online time clock system that offers a free trial. You will be able to try it out to see if it will suit your company needs while understanding the features and how they will benefit you. OnTheClock is a great way to start with managing your employee’s time and saving money. Don’t continue to dread your time card activity any longer. Use an online time clock and see for yourself how simple it really is and how much money you can save.