Matthew Zelek, Senior Product Manager (US)
Femi Olowu, Implementation Specialist (US)
Mary Field, Implementation Advisor (US)
Damien Deem, Implementation Specialist (US)
In previous posts in this series about getting the most from a time and attendance solution (see Part 1 and Part 2), we have discussed many aspects and benefits of using a sophisticated system to effectively track and monitor time and attendance, a vital part of any successful business. For example, the increasing complexity of work rules that various states are imposing require a robust system that assures organizations keep up with changes and avoid the penalties resulting if any of these rules are violated.
Another vital component of a time and attendance system that must not be overlooked is the impact it has on the working lives of employees. From tracking attendance and punctuality infractions to acknowledging those who perform above and beyond the call of duty, it cannot be overstated: an advanced system that allows you to monitor, record and react to these events improves employee retention and morale as well as keeping your organization’s labor force lean and productive.
In this final installment of our series on time and attendance, we will further expand on features that help manage an ever-changing labor force and that are definitely worth considering when making that all-important decision on which solution is the best investment of your time and money.
Accrued benefits are benefits that the employee has earned based on their service or other criteria, but that are payable to the employee at some later date. These types of benefits can include sick pay, personal time off, and other related benefits that employees earn or accumulate the longer they work.
One of the most important aspects of a job can be how much and what types of benefits are available to the employee. Vacation and sick time can be a deciding factor in whether an employee decides to work for an employer. In a time when it is so hard for employers to hire and retain employees, keeping accurate track of those benefit hours is very critical, but it can be complex. There are multiple ways benefit time is earned. The two most common ways are giving employees a flat rate at the start of a year and earning time per pay period. Utilizing a system that not only tracks the time and how it is accrued but that also works with the HR system to display it in real time is key. Having all of this information in one system will both help retain employees and raise morale in an industry that is always looking for innovative ways to hold on to their employees.
Time and attendance: A critical component (not a commodity)
Time and attendance modules and functionality are often considered a “commodity”—necessary but limited and pretty much the same. In actuality, a fully utilized, sophisticated time and attendance system is a key element of a complete, integrated labor management application and can be a vital component in helping your organization achieve its workforce management goals.
It has been our objective in this series to show that strong organizations need effective time and attendance tools to help store-level management achieve operational excellence and deliver great service to customers at the optimal cost, all while managing their largest controllable expense—and most valuable resource—employees.
So as we conclude our series, let’s focus on how time and attendance can increase employee engagement, which in turn improves employee satisfaction and morale. This can result in increased retention and reduced costs associated with attrition.
Turnover is a major cost to an organization. Our informal research some time back found it cost, on average, approximately $3,800 to find, hire and train a replacement for an $11/hour entry-level associate, and many organizations reported a median turnover rate of greater than 75 percent for part-time employees. The costs are likely to be greater now.
Effective time and attendance tools that can be accessed directly via mobile devices or employee self-service (ESS) portals will empower employees, giving them real-time access and understanding of how they are compensated. They can also be empowered by the ability to provide input and feedback throughout the process.
Additional benefits for employees include:
- Ensuring that worked time is accurately and consistently recorded, instilling confidence that they are being paid for what they work
- Ensuring compliance with meal break and predictive scheduling regulations and, in the event of violation, that they are appropriately compensated for any penalties
- Accurately recording and maintaining accrued benefit plans and earned time off
- Easy access to view timesheets, benefit balances and audit trails and efficient approval or resolution regarding pay records
When your employees have confidence that their work is being properly recorded and they are being appropriately and fairly compensated, your organization’s ability to retain and attract new talent and drive engagement will increase, which in turn will improve your customers’ experience—the ultimate goal.
In conclusion, the time and attendance system has become one of the most integral pieces of an organization’s operations. It must have the adaptability, consistency and accuracy needed to handle the many complexities of today’s business environment. Mistakes relating to pay, benefits and the overall morale of employees can be costly. We hope this series has helped you consider the key functions that a powerful time and attendance system should be able to perform effectively. Successful organizations realize how integral a part that time and attendance plays in the day-to-day interactions between multiple parts of a business, both internal and external, to help achieve their primary goal of excellence. It can be tricky and complex, but effective systems and/or tools can make all the difference!