In the fast-paced business world, time is money. This adage rings especially true when managing employee timekeeping in large companies. While manual timekeeping methods may seem straightforward, their hidden costs can be staggering. In a survey done by Ernst and Young in 2019, total labor and non-labor costs for common HR tasks done without a self-service human capital (HCM) solution related to time management alone reached USD 107.6 on a per data entry item basis.
Have you checked the hidden costs of your manual timekeeping processes? Let’s uncover the inefficiencies and costs of manual timekeeping for large companies and how Payruler’s batch processing capabilities can improve accuracy and reduce administrative burdens.
Uncovering the Hidden Costs of Manual Timekeeping
For small companies that are still starting out, it may be practical to start with manual timekeeping systems, often involving paper timesheets or basic spreadsheets. However, as the company grows and scales, hidden costs start to creep in and eventually significantly impact its bottom line.
These seemingly practical systems require meticulous data entry and constant supervision and are prone to human error. For large companies, the scale of these inefficiencies becomes exponentially problematic.
1. Administrative Overhead
Among the many tedious tasks, manual timekeeping systems demand significant administrative effort. HR staff must collect timesheets, verify their accuracy, and input data into payroll systems, which is usually done twice every month for typical payroll periods, and even more for weekly payroll periods. This process is time-consuming and diverts HR personnel from more strategic tasks. For large companies with hundreds or thousands of employees, the administrative burden can be overwhelming.
2. Human Error
Human error is an inherent risk in manual timekeeping. Mistakes in recording hours, miscalculations, and data entry errors can lead to inaccurate paychecks. In large companies with more than 1000 employees, managing the logistics and documentation of these can get tedious. These errors affect employee satisfaction and result in financial discrepancies that require further administrative effort to rectify. Even a small error rate can translate into substantial financial losses in large companies.
3. Compliance Risks
Manual timekeeping systems can expose companies to compliance risks. Regulations around labor laws, overtime, and break periods are complex and vary by jurisdiction. Ensuring compliance manually is challenging and increases the likelihood of errors. Non-compliance can lead to legal penalties, fines, and damage to the company’s reputation.
4. Lost Productivity
The time spent on manual timekeeping could be better utilized in value-adding activities. HR staff, managers, and employees all lose productivity when engaged in timekeeping tasks. For large companies, this lost productivity can amount to significant operational inefficiencies.
How Payruler’s Batch Processing Improves Accuracy and Reduces Administrative Burdens
Designed to accommodate enterprise company business requirements, Payruler’s batch processing capabilities offer a powerful solution to the inefficiencies of manual timekeeping. By automating the collection, processing, and management of employee time data, Payruler ensures accuracy and reduces the administrative workload for HR departments in large companies.
1. Streamlined Data Collection
Payruler’s mass processing automates the data collection process. Employees can clock in and out using digital timekeeping systems, which automatically record their hours. This eliminates the need for manual data entry and significantly reduces the risk of errors. The data is collected in real-time, ensuring that HR departments have accurate and up-to-date information.
2. Automated and Accurate Calculations
With batch processing, Payruler automates the calculation of working hours, overtime, and other pay-related metrics. This ensures that all calculations are accurate and consistent, removing the possibility of human error. Automated calculations also speed up the payroll process, allowing HR departments to focus on more strategic initiatives.
In a case study of Johndorf Ventures Corporation, a real estate and development firm in the Philippines, when they started using Payruler, they offloaded two days' worth of payroll computation for other HR processes. For companies with specific policies that impact computations, customizations can be made to follow business requirements.
3. Enhanced Compliance with Labor Laws and Policies
Payruler’s batch processing capabilities include compliance checks to ensure that all timekeeping data adheres to labor laws and company policies. The system can automatically apply rules for overtime, breaks, and other regulatory requirements, reducing the risk of non-compliance. This automated compliance feature provides peace of mind for large companies operating in multiple jurisdictions.
4. Reduced Time Spent on Repetitive Administrative Tasks
By automating timekeeping processes, Payruler significantly reduces the administrative burden on HR staff. The time saved can be redirected to more strategic activities, such as employee development and organizational planning. For large companies, this reduction in administrative workload translates into increased efficiency and productivity.
The hidden costs of manual timekeeping are significant, particularly for large companies. Inefficiencies, human error, compliance risks, and lost productivity can all impact a company’s bottom line. Payruler’s batch processing capabilities offer a robust solution to these challenges, providing streamlined data collection, automated calculations, enhanced compliance, and reduced administrative burdens. Book a personalized demo now for a glimpse of how Payruler can simplify your HR and payroll processes, or contact us at hello@payruler.com.