Another report stated that unlogged email activities can cost companies $50,000 per employee annually.
Furthermore, time theft drains a staggering $11 billion from organizations annually as employees misreport hours worked. That equates to $25 million in potential losses each year for a 500-person organization. Such inaccurate tracking also leads to legal issues. The Department of Labor recovered $1.4 billion u https://kocuri-sendai.com/ for wage and overtime violations in just 5 years.
Violating labor laws like the Fair Labor Standards (FLSA) can lead to financial penalties, lawsuits, and a damaged reputation. With this, it’s clear that precise time tracking is a business imperative and not just an option. Also, the costs of being on the wrong side of compliance laws are too steep.
Flaws of Manual Tracking Methods
Despite the costs, 38% of US businesses still use paper timesheets and punch cards to track employees’ time. While familiar, these manual techniques have considerable drawbacks:
- Error-Prone: Manually calculating hours leaves huge room for mistakes in data entry and computation. In these cases, even minor errors compound over thousands of hours annually.
- Time-Consuming: Processing reams of paperwork is extremely inefficient, taking hours of the payroll team’s time.
- Lack of Oversight: No consolidated data to identify timesheet manipulation or falsification by employees.
- No Integration: Isolated data in paper formats makes payroll, billing, and project costing complex and disjointed.
- Compliance Risks: Harder to ensure labor law adherence without proper audit trails. Non-compliance can lead to lawsuits.
- Low Accountability: There is no way to track time waste, extended breaks, or clock-in violations.