Holding observe of worker hours is an important a part of managing what you are promoting. Nonetheless, it’s not at all times straightforward.

From buddy punching and time theft to complying with labor legal guidelines, the challenges of monitoring time can rapidly drain income and productiveness.

However don’t punch out simply but – on this complete information, I’ll deal with 8 of the most important worker time-tracking hurdles and supply confirmed options to avoid wasting you time, cash, and numerous complications.

8 Worker Time-Monitoring Challenges

Problem 1: Time Theft
Problem 2: Handbook Time Monitoring
Problem 3: Monitoring Hours of A number of Jobs and Duties
Problem 4: Holding Observe of Breaks and Time beyond regulation
Problem 5: Worker Resistance to New Expertise
Problem 6: Time Monitoring Gaps
Problem 7: Numerous Work Preparations
Problem 8: Compliance and Authorized Necessities

Worker Time Theft 

Whether or not an worker commits time card fraud by clocking in 10 minutes early or one worker clocks in for an additional (known as buddy punching), time theft may be the silent killer of what you are promoting. 

Actually, The American Payroll Affiliation (APA) discovered that 75% of companies in the USA are affected by time theft yearly, costing round $50 billion annually.

How Time Theft Occurs:

Time theft can happen in numerous methods, together with:

• Buddy punching: When one worker clocks in for an additional who’s absent or late.
• Early/late clocking: Workers clocking in earlier than or after their scheduled shift.
• Extending breaks or taking unauthorized breaks.

Even a small period of time stolen per worker can add up rapidly. For instance, a small enterprise with 10 workers who every steal simply half-hour per week might lose over $3,900 per yr.

And that’s assuming all of them earn $15 an hour—in case your workers earns extra or wastes extra time, your actual loss goes to be a lot increased.

We’d all wish to assume most of our workers are trustworthy. Sadly, that isn’t at all times the case, and time theft prevention ought to be your first precedence to guard what you are promoting from this pricey follow.

The answer

The simplest solution to get rid of time theft is to take away the chance completely.

I like to recommend implementing an automatic time-tracking app with a GPS-tracking perform like Connecteam. 

You’ll be able to arrange a geofence across the working location and restrict workers to solely clock out and in when they’re inside the geofence. 

You’ll be able to even restrict your workers’s clock-in time to a given time-frame, say as much as 5 minutes earlier than a shift. As a result of they’ve to make use of the app on their gadgets, workers can solely clock in for themselves from their cell gadgets or a shared kiosk app on a central gadget.

A while monitoring software program additionally comes with biometric clock-in methods, like fingerprint or facial recognition, to make sure the right worker clocks in or out at any given time, eliminating buddy punching completely.

GPS monitoring can also be a serious plus as a result of it means that you can see the place workers are after they clock out and in and guarantee they don’t stray from their worksites whereas working.

Handbook Time Monitoring

Counting on handbook time monitoring, comparable to punch playing cards or spreadsheets, is inefficient for each you and your staff, and these strategies are liable to errors.

It additionally requires you to manually complete everybody’s hours for payroll, which is extremely time-consuming and may result in payroll errors.

One other draw back of handbook time monitoring is that it will probably result in time theft since workers have extra freedom to trace their hours.

The answer

A digital worker time clock is the perfect time-tracking methodology as a result of it takes the headache out of your entire course of.

Workers clock out and in straight from the app, which mechanically transfers and calculates their hours to digital timesheets for payroll. You by no means have to fret about inaccuracies or errors, both.

Nonetheless, when you do stick to handbook time monitoring, listed here are some tricks to make the method as easy as doable:

• Standardize the method: Implement a uniform time-tracking methodology for all workers to document their time to reduce errors.
• Conduct common audits: Periodically assessment time data to catch and proper errors early. For instance, cross-check time playing cards in opposition to schedules, the quantity of labor somebody accomplished, or safety digital camera footage to confirm accuracy.
• Implement clear insurance policies and coaching: Present clear pointers and coaching to make sure that all workers perceive tips on how to document their time correctly. This could embrace directions on tips on how to repair errors or report discrepancies.
• Require well timed submission and assessment: Encourage workers to submit their hours on time and designate supervisors to assessment these submissions repeatedly. 
• Designate some extent individual: Assign one supervisor answerable for time monitoring and resolving errors. This level individual can be the go-to individual for workers who’ve questions or want help.

Monitoring Hours of A number of Jobs and Duties

When workers work a number of jobs and duties, it may be troublesome to trace hours as a result of every job might have completely different pay charges and extra time insurance policies.

Duties can also be billable at completely different charges or require separate monitoring for challenge administration functions. 

To maintain detailed data, workers must log their hours and specify the job, activity, and the way a lot time they labored.

Then, it’s on you to assessment every entry earlier than sending timesheets to payroll, which might take numerous time that you can spend on different issues.

The answer

Digital time-tracking software program is one of the best ways to hold observe of your workers’s working hours. Search for software program that gives the next options:

• A number of Job and Job Monitoring: Search for software program that permits assigning a number of jobs and duties to every worker, with the flexibility to set completely different pay charges for every job.
• Automated Time Allocation: When an worker clocks in for work, the app prompts them to decide on the precise job they’re engaged on, mechanically allocating hours to the right challenge or consumer.
• Automated Calculations and Reporting: The software program ought to mechanically calculate complete working hours, pay charges, and extra time and generate stories for payroll and challenge administration.

Holding Observe of Breaks and Time beyond regulation

Monitoring worker hours is one factor, however conserving observe of breaks and extra time provides to the problem.

Totally different jurisdictions have their laws relating to break occasions, extra time legal guidelines, and most working hours. Remaining compliant with these legal guidelines may be advanced, particularly for companies working throughout a number of places or with discipline employees.

In California, for instance, workers who work greater than 5 hours per day should take a 30-minute unpaid meal break. Nonetheless, in Alabama, solely workers below 16 are required to take action.

So, how will you be sure your workers take required breaks in addition to simply hold observe of and calculate extra time hours:

The answer

A dependable time-tracking software program can considerably simplify managing breaks and extra time:

• Automated Break Reminders: The app can ship automated notifications to workers, reminding them after they’re due for a break, serving to to make sure compliance with break legal guidelines, and selling worker well-being.
• Time beyond regulation Pre-Approval: Arrange a system the place extra time requires supervisor approval earlier than being labored (besides in emergencies). This helps management labor prices and ensures extra time is allowed.
• Customizable Break and Time beyond regulation Guidelines: Configure the software program to account for particular break and extra time laws in several places the place your workers work.
• Automated Calculations: The software program mechanically calculates complete hours labored and extra time pay primarily based on set guidelines and generates stories for payroll processing, saving managers important time and decreasing the chance of errors.

Implement a time-tracking system with these options to make sure compliance with labor legal guidelines, streamline payroll processing, and promote a wholesome work-life stability on your workers.

Worker Resistance to New Expertise

Implementing a brand new time-tracking system could be a hurdle even in the perfect firms. Whereas the aim is elevated effectivity and streamlined processes, folks usually have reservations about change.

If you happen to change from handbook time monitoring to worker time monitoring software program, you’ll want to arrange for some pushback out of your staff.

Right here’s why some workers is likely to be hesitant to embrace a brand new time-tracking system:

• Worry of the Unknown: Venturing into unfamiliar know-how may be daunting. Uncertainty about how the system works and its impression on their every day routines may cause apprehension.
• Privateness Considerations: Some workers may fear the system might be used to observe their exercise ranges or whereabouts in an intrusive manner.
• Micromanagement Mishap: The introduction of a time monitoring system can really feel like a hovering supervisor, implying an absence of belief of their capacity to handle their time successfully. This will result in resentment and resistance.

The answer

Clear communication is essential to making sure a easy transition. Think about a staff assembly the place you unveil the brand new time-tracking system as a precious software to boost their workday.

Right here’s tips on how to foster a constructive surroundings and promote person adoption, making the brand new system a welcome addition to what you are promoting:

• Give your workers loads of discover. Inform your workers properly prematurely concerning the impending change to time-tracking software program to allow them to mentally put together for the change and handle any preliminary issues.
• Clarify why. Clearly talk the advantages of implementing the software program, comparable to simplified timekeeping, correct payroll, and probably extra versatile work preparations (if relevant). This may help workers perceive the constructive impression it would have on the enterprise and their day-to-day.
• Present coaching. Provide worker coaching on tips on how to use the software program to alleviate fears and uncertainties concerning the new system and to make sure a easy transition.
• Provide assist. Designate a particular worker or staff to deal with questions that come up in the course of the implementation course of so workers know who to show to if points come up.
• Contain Workers within the Choice Course of: If doable, contain a small group of workers within the software program choice course of. This may help construct buy-in and make sure the chosen system is user-friendly.
• Constructive Reinforcement: Acknowledge and recognize workers who readily undertake the brand new system. Constructive reinforcement can encourage others to observe go well with.

Time Monitoring Gaps

This refers to situations the place workers don’t precisely document their time at work, which leads to incomplete or lacking hours.

Right here’s why they happen:

• Forgotten Punches: Workers may merely overlook to clock in or out for breaks, conferences, or errands, leaving unaccounted-for time gaps of their timesheets.
• Inaccurate Handbook Entries: Handbook time monitoring by spreadsheets or paper timesheets is liable to errors. Workers may estimate their hours inaccurately or overlook to document particular duties.
• Multitasking Challenges: When workers juggle a number of duties or initiatives all through the day, it may be troublesome to recollect to modify between time-tracking entries for every exercise, resulting in gaps.

Time-tracking gaps pose the next challenges:

• Inaccurate payroll: Unrecorded hours can result in inaccurate payroll calculations, probably leading to underpayment or overpayment of workers. This will trigger frustration and authorized points.
• Decreased productiveness: If workers should not persistently monitoring their time, it turns into troublesome to establish areas the place productiveness is lagging, which might make it troublesome to enhance office effectivity.
• Compliance points: Correct time monitoring is usually a authorized requirement, particularly for billing purchasers or calculating worker pay. Gaps in time monitoring can result in non-compliance points and potential authorized penalties.
• Lack of accountability: It may be troublesome to carry workers accountable for his or her work and to precisely consider efficiency once you don’t have a strong understanding of how lengthy duties take.

The answer

To get rid of gaps in your worker hour data:

1. Foster a tradition of accountability

• Clearly talk the significance of monitoring hours accurately. You’ll be able to maintain in-person conferences in case your staff works in the identical location, or talk to everybody by your staff communication app. 
• Set up insurance policies and pointers for time monitoring, together with penalties for non-compliance.
• Encourage transparency and accountability by sharing time-tracking knowledge together with your workers and discussing gaps.

2. Implement automated time-tracking

• Search for an app with a cell time clock, automated hour monitoring, and digital timesheets.
• Use an app with automated notifications to remind workers to clock out and in and to take breaks.
• The app also needs to let you enter a number of jobs for every worker with completely different pay charges.

3. Present coaching and assist

• Present coaching on tips on how to use time-tracking software program so your workers doesn’t by chance make errors. 
• Designate some extent of contact to deal with any questions or points.
• Collect time-tracking suggestions out of your staff utilizing worker surveys and implement their enter to enhance the method. 

Numerous work preparations

Monitoring worker hours may be much more troublesome if what you are promoting has discipline employees in a number of places, distant employees, part-time workers, or provides versatile schedules.

Managing a number of shifts and places additionally makes it troublesome to maintain worker hours organized and take care of a number of time-tracking methods, particularly when you nonetheless depend on pen and paper.

Numerous work preparations can also require changes to scheduling insurance policies and processes to make sure compliance with labor legal guidelines.

The answer

The most effective answer is to make use of cloud-based time-tracking software program with a cell time clock. That manner, everybody’s hours are in a single place regardless of the place they’re working. You can too simply assessment hours everytime you want.

This flexibility and customization make it a lot simpler to handle everybody’s hours. 

Listed here are some key options to look out for when selecting an worker time clock app:

• Geofencing and GPS monitoring: For discipline employees or workers who often journey, take into account an app with geofencing and GPS monitoring. This lets you mechanically seize clock-in and out occasions primarily based on worker location so your time data are at all times correct.
• Customizable work schedules and shift administration: Search for software program that gives versatile scheduling and shift administration options so you’ll be able to guarantee correct timekeeping for workers with completely different work preparations. 
• Automated reminders and notifications: These are helpful for prompting workers to log their hours, no matter their work association or location. Automated notifications additionally assist reduce missed or incomplete time entries and encourage constant time-tracking.

Compliance and authorized necessities

If what you are promoting operates in a number of cities or states, you already understand how difficult it’s to stick to labor legal guidelines.

Every jurisdiction might have completely different legal guidelines and laws relating to extra time pay, break occasions, and record-keeping. Breaking these legal guidelines may end up in steep fines for what you are promoting. 

Sure industries like healthcare, building, or transportation have particular time-tracking laws associated to worker security or breaks (e.g., monitoring breaks for drivers to adjust to DoT laws). Conventional timekeeping strategies may not be outfitted to deal with these complexities.

The answer

Listed here are my prime ideas for making a compliance administration system that ensures what you are promoting adheres to authorized necessities:

Influence of Time Monitoring Errors on Your Enterprise

Time-tracking errors can value what you are promoting cash and end in decreased productiveness. Listed here are a few of the key impacts of those errors:

• Inaccurate challenge costing and billing. Incorrect time-tracking may end up in both undercharging purchasers, inflicting income losses, or overcharging them, which might injury consumer relationships.
• Decreased productiveness and effectivity. Errors in time monitoring make it harder to establish the place time is wasted or which duties take longer than anticipated. 
• Payroll discrepancies. Incorrect payroll calculations result in overpaying or underpaying workers. 
• Useful resource allocation challenges. Unreliable time-tracking knowledge could make it difficult to allocate assets and assign duties to the best workers or groups.
• Problem in forecasting and planning. Inaccurate timekeeping makes it tougher to understand how lengthy workers take to finish initiatives. In consequence, you might not be capable of create correct challenge plans and timelines.
• Compliance and authorized dangers: In lots of industries, correct time monitoring is a authorized requirement for compliance with labor legal guidelines. Time-tracking errors can expose companies to potential fines, lawsuits, and reputational injury.

Streamline the Time-Monitoring Course of and Say Goodbye to Errors 

If you happen to actually need to get rid of time-tracking challenges and easily make the method an entire lot simpler, worker time-tracking software program is the way in which to go.

Connecteam is an award-winning worker time clock that’s user-friendly and reasonably priced for companies of all sizes. Listed here are a few of the key options to make monitoring worker hours simpler:

• Worker time clock: Workers can clock out and in of labor proper from their telephones with only a faucet, and all hours are mechanically logged and calculated onto worker timesheets. You can too monitor attendance in actual time with late or missed clock-in notifications
• Automated timesheets: You’ll be able to assessment timesheets for payroll as wanted and look at complete every day work hours, the variety of hours labored throughout a payroll interval, extra time, breaks, and time without work. The system additionally flags any irregularities, permitting you to simply spot and proper probably pricey payroll errors. 
• GPS-tracking and geofencing: The app features a real-time GPS tracker that means that you can guarantee your workers are precisely the place they must be whereas on the job. You can too arrange digital geofences round your work websites to limit the world from which your workers can clock out and in, eliminating time theft.
• Assign completely different pay charges: Apply completely different pay charges per worker or job and mechanically calculate work hours, breaks, and extra time.
• Payroll integrations: Simply export timesheets on to your payroll software program or use certainly one of Connecteam’s payroll integrations: Gusto, QuickBooks On-line, Paychex, and Xero. This lets you skip your entire handbook course of, saving you precious effort and time.
• Stay compliant: Set break and extra time guidelines in accordance with native, state, and federal labor legal guidelines and obtain alerts about discrepancies, like exceeded extra time limits and double bookings. All timesheets are saved on document so you may have rapid entry to them when you’re ever audited.

Get began with Connecteam free of charge immediately!