operations | 4 mins read

5 Reasons Why You Need a Time Clock

5 reasons why you need a time clock
Michelle Jaco

By Michelle Jaco


If you're one of those companies that use pen and paper or spreadsheets for time clock management, then you are ironically not managing your time very proficiently.

This method of timekeeping, can lead to many inaccuracies and ultimately more hours improperly utilized devoted to hour recalculations.

By implementing a time clock into your business, you will make this process much easier for both the managers and employees.

Forget the punch cards, forget the manual payroll calculations this is a modern age and you should use all available resources dedicated to simplifying these business practices.

Time clocks can solve a lot of problems for you, even some problems that you may not even be aware of.

Here are 5 life-changing reasons to invest in an employee time clock.

Reason One - Accurate & Fair

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An employee time clock can help you with some of the most widespread issues that arise when logging time manually.

Removes human error - You might think it's asinine to remove the human element from payroll creation, but it isn't. It's actually becoming a widespread tactic around restaurants because it accurately records time worked without giving a pass to individuals that consistently show up late or miss shifts. The software cannot show favoritism and will track punches equally and accurately.

Builds trust - Time clocks often reassure your employees that they're being treated equally. If they see an employee that frequently skips work, they'll know he's not getting paid the same as them. This helps keep employee satisfaction on a higher level.

Online employee scheduling software that makes shift planning effortless.
Try it free for 14 days.

Reason Two - Reports Labor Costs

Pen and paper, and even spreadsheets will never give you the dynamic data from that of a digitalized time clock. With a time clock, you have the option to find out what your labor costs are with a click of a button.

Labor cost reports can provide you with valuable information as to how to reduce the costs of your restaurant and ultimately achieve a higher profit.

Here's what you can learn .

Duties that take up more time - You can see with great detail which areas of your business are producing more labor costs, in terms of the number of employees needed to complete that task and the amount of time it's taking to complete that task

Overtime costs - The best time clock calculator will let you know when an employee is nearing the weekly limit allowed to work. The app will then send an alert, letting you when overtime occurs. You can also measure which areas of your business require the most overtime in order to complete all necessary tasks.

Production by employees - If your labor costs are high, but your production is low, then you may have an employee performance problem. This would be much harder to notice without the necessary data that a time clock can provide.

Reason Three - Creates Accurate Payroll

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If you're tracking time using pen and paper, or spreadsheets software, chances are you'll make a mistake and pay an employee for a shift that he/she didn't actually work. This will most likely awaken some frustration within your other employees, and it will ultimately lose your business money.

Strong timekeeping software will automatically create payroll for you. In addition, the best time clock calculator for lunch breaks will also take into account when an employee punches in and punches out for a meal break.

Studies predict that errors in the manual payroll calculation can cost businesses up to 7% of their payroll costs.

Reason Four - Saves Time & Money

Time clock software will definitely save you some time and money when it comes to calculating employee hours by drastically reducing the work needed to create payroll in the following way

Automated data collection and calculation
Instead of entering all the numbers and letters manually on a piece of paper or spreadsheets software, let a computer do that job for you. If you have the right software, you might even be able to fully eliminate manual data entry.

Online employee scheduling software that makes shift planning effortless.
Try it free for 14 days.

Reason Five - Absence Alerts

Time clock software can quickly notify you when an employee misses their shift. The best time clock will also give you a list of employees that you can call in order to replace the absentee.

On top of that, you can keep better track of employees who are abusing their schedule, such as frequent shift swaps or frequently taking sick days.

Absent employees cost you money
The absence of an employee can interrupt the whole project that the employee is assigned to. This makes the team lose productivity and have to restart when the absentee comes back. Losing productivity means losing money.

Employee satisfaction can suffer
Employees are usually expected to pick up the extra work of an absent employee. This can quickly create hateful feelings toward that employee and the company. As distance builds, employees can quit and replacing an employee costs over $3,000 for a $10/h employee.

The Takeaway - Keeping employee time records is required by law, and it must be accurate. This is how you know it's about time you upgraded to an automated time clock system.

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