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What you pay people: you’re not the only one keeping track

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What’s your HR department’s system for recording and documenting your employees’ hours worked and daily attendance? Computerized logins and logouts? Good old-fashioned time cards? Whatever it is, make sure you insist on thorough, accurate documentation — or you may be asked to  defend your numbers later.

These days we have all sorts of electronic conveniences that allow us to track practically anything, from our time in the hundred-meter dash to how our stocks are faring. It’s just as easy for employees to make their own electronic accounts of time spent in the workplace. That’s long been a necessity for independent contractors who need to know how much to bill their clients, but these days an increasing number of full-time employees are doing it too. Why would they bother? Well, your employee may have the idea that you’re not keeping accurate or honest records. If they can prove it, say in a lawsuit, it’s extra money for them and a hassle for you.

What can you do to make this issue a non-issue? Simple — require thorough documentation of all hours worked and any days missed. Spell out the processes clearly and firmly in a company-wide written policy. All documentation must be entered promptly and uniformly to ensure that you never have gaping holes in your records.
There are also some very cost effective software solutions with various options available for capturing time. These systems make the process almost fool proof because of the standard procedures and documentation. And, the American Payroll Association found that time and attendance solutions such as these can typically results in a savings of one to eight percent of is annual gross wages, mostly because of error elimination.

Accurate documentation of employee hours and attendance is good for business anyway. The more reliable your data in this area, the more easily you can spot scheduling inefficiencies, individual trends that might indicate chronic underperformance, and new ways to improve productivity and profitability. Once you know everyone’s documenting those hours properly, you can stop worrying about the occasional rogue employee who disagrees with your records — because you’ll have the facts to back up your figures.

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Written by Dan Hettrich

August 25, 2014 at 2:15 pm

Posted in Uncategorized

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