How a Time Clock App Solves 6 Obstacles to Business Growth

On the fence about whether to get an employee time clock app? You’re not alone. Despite irrefutable benefits, many small businesses don’t use one.

What’s stopping you?

Perhaps you think you don’t have enough employees. Maybe you are afraid your team will be insulted if you make them use one.

Are you so busy you can’t think about one more thing? Worried that adopting a new system will be more hassle than it’s worth?

My goal is to convince you that an affordable time clock app will solve rather than create problems.

I’m talking about a simple, turnkey app. One that does timekeeping, scheduling and Paid Time Off (PTO).

The Fastest and Cheapest Way to Improve Efficiency

Will it really help you run your business more efficiently? When it comes to ROI, no business management app comes close.

Why?

Improved labor management is a big deal. Labor is your biggest expense.

Let’s look at six problems an employee time clock app will solve.

1. Preparing Payroll Takes Too Long

Whether you pay your employees weekly, bi-weekly, or monthly, payroll is relentless. It seems to roll around quicker each pay period.

If you dread it, it’s probably because you track it with timesheets or other manual processes.

Tracking and entering employee time manually doesn’t make sense anymore. Using a simple employee time clock app is a game changer.

2. We Have Remote Employees

With remote and hybrid work schedules come some unique challenges. One of the biggest struggles for employers is managing employee time. It’s difficult to know when employees are working when they’re not physically present in an office. A time-tracking app is an ideal solution to this common problem, as it improves accountability and data accuracy.

Geofencing, an available feature, allows managers to view the locations of employees when creating punches. Whether your employees work from home or at various job sites, utilizing a time clock app provides access to accurate data.

3. Employees Make Mistakes

There is at least a 2%-3% error rate in manual data entry and calculation. Whether intentional or not, the mistakes made when employees use manual processes to manage their time can cost your business a lot of money. Even an accidental miscalculation can result in a team member being overpaid, which impacts your labor budget. Intentional time theft is another issue that plagues businesses of all sizes.

When an app does the calculating, you protect your payroll from human error. It also prevents timecard padding. 

Automated employee time tracking reduces unnecessary payroll bloat due to errors or time theft. With a time clock app, you can ensure that employees are clocking in when they’re at their work sites and being paid for the hours they work. Data accuracy improves, which means payroll is easier and more accurate, every time.

4. PTO Tracking is Challenging

Confusion surrounding time off is a common problem. Without a formal system, you are at risk for double booking. Or forgetting someone’s request.

A time clock app with PTO tracking is the answer.

Your team members request time off in the app. You can see all the requested dates together, side by side.

It puts everyone on a level playing field if you have a first-come-first-served time off policy. It removes any actual or perceived inequity.

You’ll never have to remember which requests you have approved. It shows the dates the requests were submitted. Transparency solves a lot of problems.

5. Client Billing isn’t Always Accurate

Are you guessing when billing clients? If so, you could be leaving money on the table, which can impede business growth and success.

A time clock app can track and allocate your employees’ time by project, team, client, and other categories. If you’re in construction or field service, you can view billable time at a glance. Ensure accuracy when billing clients by implementing a time clock app.

6. Operating Expenses are Going Up

Most operating expenses are fixed. Leasing office space, for instance. Administrative costs, however, are variable.

Inefficiency costs you big time. When it comes to employee timekeeping and payroll, a time clock app can improve efficiency dramatically. Improved efficiency saves money in several ways.

How many hours do you (or your payroll manager) spend each month preparing payroll? This includes gathering timesheets, correcting errors like missed punches, and calculating PTO. Plus figuring withholdings and submitting payroll taxes.

According to the Bureau of Labor Statistics (BLS), payroll and timekeeping clerks make a median hourly wage of $25.11 (2034 data).

Regardless of who does what, let’s suppose, in total, your team spends 15 hours a month on payroll. Let’s value this time at $25/hr (the median wage for a payroll manager). That totals $375 in labor.

It’s unlikely that any time clock app will cost anywhere close to that much per month for your business. The cost savings alone makes a compelling argument for an employee timekeeping app.

And what about the opportunity cost? If you could reclaim those hours, what could you do? Find new clients? Research your competitors? Rethink your business model? 

Rely on WorkforceHub to Boost Business Success

WorkforceHub is the ideal employee time clock app for small businesses, particularly those that are growing. It scales with your company, and you can use it to manage all of these tasks:

• Tracking employee time and attendance
• Approving timecards and preparing for payroll
• Creating and posting your employees’ weekly schedules
• Tracking PTO and allowing employees to check their balances
• Managing employee time off requests
• Controlling labor costs with clock lockout tools

Learn more about WorkforceHub and how it can help you leapfrog these business growth obstacles. Try it for free or take a quick video-based tour.

Updated July 3, 2024

Originally published June 12, 2019