Lower Payroll Costs With a Biometric Time Clock
The article explains that despite common misconceptions about cost, biometric time clocks can significantly reduce payroll expenses for small and medium-sized businesses by preventing wage theft and human errors in timekeeping, which studies show can lead to overpayment of two to four hours per employee weekly, resulting in substantial annual financial losses.
Many business owners think biometric time clocks cost too much for the average small or medium-sized business (SMB). However, this misconception can be more expensive in the long run, as it prevents business owners from adopting a solution that could reduce costs. The absence of a biometric time clock can actually increase the cost of doing business.
Any other type of punch-in device is likely to result in errors. Sloppy employee timekeeping inflates labor expenses in several ways:
1. Employee Wage Theft Costs You
- Employees punching in before their prescribed shift start time
- Workers punching out after their authorized shift end time
- Workers failing to clock out for unpaid breaks and meals
- A worker punching in for another employee who is not working (this employee may end up coming in late or not show up at all)
If you think this is not happening at your company, you must believe that your employees are somehow different than other workers. The truth is that study after study demonstrates that wage theft is omnipresent among hourly employees.
When you are paying wages for time not actually worked, you are losing income. Payroll is probably already your biggest expense.
2. Human Error Also Costs You
- Employees unable to recall previous shift times when filling out a time card several days later
- Supervisors making math errors when reconciling time cards
- HR managers miscalculating accruals
- Data entry mistakes when entering employee hours in the payroll system
How Much Are You Losing?
Studies by the American Payroll Association and other industry experts estimate that the amount of time employers overpay workers ranges from two to four hours a week per employee. For example, if you are paying an extra three hours a week per staff member, with an average hourly wage of $10 and 30 employees, the total is $46,800 in extra wages each year.
Solutions
Swipeclock offers WorkforceHub, a unified Human Resources portal that helps optimize the performance of managers, employees, and businesses. WorkforceHub includes features such as TimeWorksPlus, TimeSimplicity, TimeWorks Mobile, and ApplicantStack. It also offers recruitment, onboarding, benefits enrollment, performance reviews, and employee engagement tools. WorkforceHub is designed for busy employers who need to reduce cost-per-hire, streamline scheduling, automate time tracking, maintain regulatory compliance, and decrease labor costs.
For more information or to request a demo, contact Swipeclock.
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