3 ways Automated Time and Attendance Software Adds Value
Time & Attendance SoftwareMany companies have some form of a time and attendance system in place. Whether they are using paper timesheets, Excel spreadsheets, or an electronic system to track employee time and attendance, companies need to have some record of their employee labor. From this, companies need to generate gross payroll records for employees, which are often sent to payroll services such as ADP or Paychex to process taxes, deductions, etc. From there the employee receives the paycheck. However, payroll processors are only going to process what they are sent, and are not equipped to validate that the pay they are processing is accurate. It’s in this context that we explore three ways that automated time and attendance software adds value to your organization.
Certain scenarios make it relatively easy to calculate an employee’s pay. For example, pay for exempt employees is pretty straight forward, as there is not much variety from one pay period to the next. And employees who are hourly, non-exempt employees, but who work a “straight 40” never working outside their schedule are also fairly easy to manage. As long as every employee was like that, other than reducing some administrative burdens, the value is relatively limited. However, in organizations that have complex overtime rules, shift differential rules, or other premium pay scenarios, having an automated system can catch exceptions that could otherwise sneak by.
Properly Pay Employees for Holidays
Holiday pay can be a tricky pay situation for many employers. This is because many organizations have complex rules that govern which employees are eligible to be paid for holidays. A good example is the time from this past weekend. Independence Day (USA) fell on a Thursday this year, with many companies providing their employees with the option to take the Friday as a floating holiday. However, what if the employee already has Friday as a regular day off? Or, what if the employee’s shift rotation gives him that Friday as a day off? Should the employee have to “burn” a floating holiday to receive full pay? An automated solution that has all of the rules already configured takes the guesswork and “what if?” scenarios out of the equation, and helps to ensure that employees are paid properly around holidays.
Remove Payroll Stress for Employees and Managers
When employers are calculating employee time and attendance transactions manually, there is always going to be stress associated with making sure that the pay amounts are correct. First, there is the stress of actually performing the pay calculations manually. Supervisors need to go employee by employee to ensure that the pay has been calculated correctly. A mistake in the employee’s favor could cost the company money it can’t afford to throw away. A mistake “shorting” the employee will cause anger and suspicion on the part of the employee, as they begin to question the competence of the employer. From the employee’s perspective, each pay period brings stress, as they need to go back and count their hours and rates to make sure that they were paid the proper amounts. By using an automated system, companies can assure employees that they will be paid properly the first time, and reduce the overall amount of stress across an organization.
Implementing an automated time and attendance system adds value to organizations in multiple ways. From reducing costs to improving accuracy to boosting morale, an automated time and attendance solution can simplify operations and help improve the overall functioning of the organization. To learn more about how your specific time and attendance needs can be automated, contact Madaa Smart Solutions.