An online timecard system can be an excellent investment for any company. It can help you better manage employee work hours, attendance, and schedules. Not to mention it can improve processing payroll. But like any business decision, there are many considerations to make when deciding just how much to spend on implementing and using time clock software to track employee time and attendance.
In this article, we’ll cover the most important factors to consider when choosing employee timesheet software and how to go about deciding on a suitable pricing model for your business.
Determine Your Time Clock Software Budget
Before you decide to implement a time clock software system for your business, it’s essential to figure out just how much you want to spend. You need to consider the price of installing or setting up the software, how much hardware will cost, and any annual or monthly service fees related to that software’s usage.
While the initial setup of a time and attendance app can be costly, the benefits often far outweigh the initial cost. Factoring in things like new computers, technicians, employee training, monthly fees, and other expenses can help you determine how much you will need to spend to get started.
It will also give you a good idea of a regular budget for the software’s upkeep. Once you understand these factors, it will help you decide how best to implement time clock software into your business.
Do A Cost-Benefit Analysis
One of the easiest ways to determine if time clock software is right for you and how much to spend on it is to do a cost-benefit analysis of what your savings will be by using it. Here are a few different areas where you should do a cost-benefit analysis:
- Payroll – Payroll savings alone will likely be a significant benefit for your business. Not only will you save money on actual payroll by improving time accuracy, but you will also actually need fewer personnel to process payroll in the first place. This equals time saved, and efficiency increased.
- Labor – You will also save money on labor costs by managing hours better, improving staffing levels during critical operation times, and accounting for employee preferences.
- Legal Fines – You can avoid fines for violations of labor laws by ensuring that employees are given proper breaks and off time and that each employee adheres to these policies properly. Labor law violations can result in very hefty fines and eventual business loss.
A remote worker time tracking is someone who works from home. This can be a great way to reduce your commute and save on costs, but it can also be more complicated than working in an office. There are a few things you need to take into account when tracking your work time with a remote worker.
Time clock software will allow businesses to save money and even make more money in the long run by improving employee productivity through accountability and active monitoring. Employees know that to be paid for time worked, they need to be productive and stay on task.
Time tracking monitoring also allows employers to determine when an employee is late, absent, or on time to handle any issues in the performance that may arise. Better tracking of employee productivity leads to increased profits.
Lastly, for businesses that work on a per-job basis, such as contractors, online time clock software allows them to cost out a job more accurately. By using past data as a reference point, businesses can make smarter decisions and meet deadlines more accurately with fewer overages and unforeseen delays.
Figure Out How You’d Like to Pay
Now that you’ve got a good idea of what you’re willing to spend and how online timesheet software can benefit you financially, you’ll want to determine the best pricing model. Most time clock solutions have different payment arrangements based on your business’s needs. You can pay monthly or annually in many cases, with savings for paying annually.
Not only that, different pricing models work better or worse depending on the structure of your business. Generally, there is an option to choose from a per-employee fee for software usage and a flat fee. A per-employee model is more beneficial for companies with inconsistent employee numbers, high turnover, or fluctuating staff levels. The fixed-rate is likely to be more cost-effective for businesses with stable employee numbers.
Choosing the best time clock software for your business is challenging, but hopefully, the information we’ve provided can make that process slightly less stressful!