Accuracy is defined as the quality or state of being correct or precise. Another definition of accuracy is the degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.
Knowing the importance of time card accuracy will boost your company to the next level; understand the number of time employees invest in their work. As a result, you will see an increase in payroll accuracy.
General Importance of Accuracy at Work
To be accurate and precise at work helps a company grow, profit, and function efficiently. Accuracy can also help a company know its budget, employee expenses, and projections for revenue.
Whether you’re in the construction industry, an accounting professional, or a healthcare provider, accuracy in the workplace is crucial. But, beyond being accurate at the actual job at hand, properly tracking time invested into your work is just as important. Having a clear understanding of where and how employees’ time is spent allows employers to know if their business is operating to its full potential.
Additionally, organizations worldwide will improve their image and brand when it comes to accurate work performance. Finally, precision plays a considerable role in how the community views your ethics and quality of work. For example, if your company is providing inaccurate billing information, some could perceive that your company is being unethical, unprofessional, or not trustworthy.
How Does Inaccurate Work Accuracy Affect Your Company?
Did you know 33% of employers make payroll errors resulting in billions of dollars annually? Unfortunately, these problems happen more frequently than you think. For example, miscalculating or failure to pay overtime to employees is one of the most common payroll mistakes made. However, with proper time card reporting, your business and team members will avoid this type of payroll mistake and possible penalties.
A survey from the Workforce Institute reveals that an estimated 82 million Americans, more than half of the U.S. workforce, experienced a problem with their paycheck during their career. These paycheck errors include late payments, non-payments, over-payments, and incorrect payments.
Inaccurate paychecks can result in high employee turnover and unhappy employees.
The statistics provided above can negatively impact your company’s financial status and your employees’ financial status. Many time card errors are created from a lack of technology and proper time tracking. Various businesses are still practicing the older version of handwritten time tracking tactics. The American Payroll Association’s 2016 Trendline Survey reported that only 40% of its members responding had fully automated payroll systems
Why Time Card Accuracy is Important
In 2019, the Wage and Hour Division of the US Department of Labor recovered more than $322 million in recovered wages for workers in a fiscal year which is up from 2016 when $266 million in back wages for more than 280,000 workers whose employers failed to comply with federal labor laws.
Much of this is contributed to how data for hours worked is collected. This can include time tracking and time card reports on record from an employer.
A lack of time card accuracy could be costing you or your employees a lot of money. Here at OnTheClock, we recommend that business owners look closely at their accounting, payroll tracking, and employee time tracking to see if it is being documented accurately.
A Solution to Improving Time Card and Work Accuracy
The reality is that we are all humans, and mistakes are inevitable, but there are many solutions to decrease errors from happening. Listed below are just a few ideas that seem to be commonly used techniques, tools, and habits that can be adapted to benefit your proficiency.
- Upgrade technology when needed. If your time tracking system is outdated, maybe it is time to invest in a service that will suit your time card needs. Modern time clocks offer tremendous accuracy, efficiency, and time-saving features.
- Accurately and adequately document employee hours worked to avoid fines and penalties. A service like OnTheClock keeps all of your time card data safely stored in the cloud for convenient access when you need it.
- Integrate your payroll software with time tracking software to streamline the payroll process and improve payroll accuracy.
By implementing all the appropriate steps mentioned, your organization will notice improved work accuracy and time card data. Avoid significant compliance issues for inaccurate time card records and owing employee back wages by tracking employee hours worked.
Improve Work Accuracy With A Time Clock
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