A manually prepared payroll has a number of inevitable flaws that can potentially drive poor, long-suffering payroll professionals ‘round the bend. Here is a roundup of a few of the issues that can arise…
Rounding times. When filling out their manual time sheets, it’s normal for staff to want to round times up (and up and up!) to the nearest 5, 10 or even 15 minutes to ensure they’re paid the maximum amount for the time they work. Over time, and when your company size reaches numbers like 100 employees and above, those generous roundings can combine to inflate your labour costs exponentially. Even if your supervisors are actively encouraging staff to record their times accurately, or doing their best to monitor times, there is still a margin for improvement.
Sticking to the roster. With manual time sheets, many employees often exhibit a tendency to write down the exact times that they are rostered, such as 9:00am to 1:00pm rather than the actual times that they work – which might actually be 9:06am to 1:01pm. Even in situations where staff aren’t inflating the times they work, they may simply think they’re doing the right thing by writing down their exact rostered times. The advantage of the Mitrefinch automated time and attendance system is that it accurately captures the exact working times, giving greater accuracy, better insights on employee performance, and reducing labour costs.
Grace. Rounding out this list of manual payroll issues, is grace periods. Many managers have informal ‘grace’ policies in place with their employees whereby they let things like lateness, longer lunches, and early leaving slide so long as it doesn’t get to be too much. However, the reality is that it can sometimes be tricky to monitor such informal policies – especially with employees reporting on their own working times. Automating time and attendance has the added advantage of highlighting anomalies for supervisors to check off – if they fall outside some predefined parameters (such as employees coming more than 15 minutes late). This gives greater control over absence management.