Though paper processes are still prevalent in many small businesses, studies show that employees don’t like or trust those paper-based time-tracking systems. In fact, 37 percent of employees are worried that inaccurate record keeping will mean they won’t get their full pay.
Inaccurate processes also cost employers time and money — time because dealing with paper time cards is less efficient than digital processes, and money because mistakes in logging and rekeying can result in overpaying employees for hours worked.
Updating your time-tracking processes to digital to not only improve your bottom line, but to grow employee trust as well. Many companies are making the switch away from paper-based processes, recognizing that paper is slower, less efficient, and less accurate than digital and mobile apps. Switching away from paper can reduce pressure on the back office to make sure employees are paid on time, which also makes for happier employees.
Employees Prefer Digital Timecards
One study found some interesting results when surveying employee preferences:
- Of those workers who said their employers were still using paper-based time cards – half weren’t convinced their employer was capable of tracking their time accurately.
- Eight percent even said that their employers were “not at all” capable of managing this.
- But most workers said they do trust a digital system to keep track of hours: 59 percent said they trusted such systems, jumping to 68 percent among millennials.
- Almost half (48 percent) said the ability to use their smartphone to input and access payroll and timecard data would make them feel more confident in the system.
How Time Tracking Has an Impact on Accurate Billing
In addition to cutting down on timecard processing time and eliminating errors, accurate timecards can ensure you’re not overpaying any employees either, by helping to reduce unplanned overtime.
According to The Aberdeen Group, companies that used an automated leave management system — where employees can request days off without having to check in with a central gatekeeper — saw a 32% reduction in unplanned overtime.
Moving to digital also allows you to use business intelligence to analyze the data you collect with your digital time tracking, giving you crucial insights on employee productivity, overtime costs per job, and more. You will now be able to answer questions such as which employees work the most overtime? Which seasons or time periods are most likely to require overtime?
With some careful planning you can reduce overtime to only what’s needed, saving resources for when you need them most and better managing your payroll expenses. When you track time cards using digital apps, it also helps you to ensure that you are not over billing or under billing for work performed. If you don’t have reliable data on how long jobs actually take, it’s difficult to accurately bill and can put you in a situation where you are losing money or over charging.
Why You Should Go Digital With GoCanvas Timesheets
This is still a great opportunity to modernize your old time tracking system. Digital and mobile timecards offer speed and flexibility (no need to drive time cards from the job site to the office for processing, accuracy, and protection in case of an audit.
Mobile timecards put workers in control; they can fill out and submit their hours worked from anywhere, and they can instantly be approved by their manager, the back office, etc. and sent to payroll without having to re-type anything. Mobile time cards also make it easy to differentiate between projects, what percentage of an employee’s time is billable, and more.
Because employees often fill in paper time cards after a shift or at the end of the week, you’re relying on their memory for how many hours they worked, which projects they worked on, when they took breaks, etc. Mobile timecards eliminate the memory problem and improve accuracy — so you only pay for actual overtime worked.
Sign up for a free trial of GoCanvas timesheets and timecards, or contact our team any time to learn more.