How can you have trouble tracking employee hours and overtime?
Let us count the ways:
Illegible handwriting. Handwriting can be difficult to decipher. Let’s say someone writes their 1 like a 4 or a 5 looks like a 6. Misreading the number of hours can lead to overpaying or underpaying or even overcharging or undercharging clients. So eliminate this with typing entry-only systems.
- Entry errors. Of course, employees can also make typing errors. Turn to time tracking software. No more writing or typing time sheet errors. How this can work depends on the kind of business you’re in.
- Calculation time sheet errors. Being stressed, overworked, fatigued or distracted may lead to slip-ups. Time tracking software tracks and calculates the number of hours worked automatically. Again, see how this can work in your situation.
- Forgetting to log time. Employees may forget to log in and record work hours. Fortunately, time tracking software features a reminder option. Employees can set daily or weekly reminders to log their work hours or send in their time sheets. On the time sheet dashboard, team leaders see whether their staff submitted time sheets.
- Not including breaks or overtime. Failing to record breaks or include overtime hours for specific pay periods results in an inflated number of work hours or, in the case of overtime hours, employees get paid less. Many software packages can keep track of this; you just need to set it up at launch.
The bottom line?
Communicate with your employees about the importance of time tracking, how to fill out time sheets or use an app and, if using an app, how to log in and report work hours. Be available to answer questions about your time tracking policy. Mention how to track breaks and to differentiate between billable and nonbillable hours. Make sure you clearly define exempt and nonexempt employees, as their situations differ in important ways.
Having clear and accurate records of hours worked can give you insights into whether your staffing requirements need to be modified or payroll needs to be simplified. Work closely with financial and payroll professionals to make sure you have the right solutions for your business.