While tracking attendance and work hours can be one of the larger expenses for your business, it is also something that can be controlled. Thanks to the advancements in technology, we can find automated time and labor management systems today on the market which provide managers with increased ability to handle worker hours while processing their expenses accurately. Do you know the best practices for effective time and labor management?
How is Time and Labor Management Defined?
Time and labor management is best defined as any activity which is associated with tracking and monitoring the hour’s employee’s work. It also involves scheduling and providing reports involving the labor force and regulations such as the Affordable Care Act. Other things which are included under time and labor management are leaves of absence and days off. The purpose of time and labor management is to manage the workload of the organization in an efficient manner which is cost effective.
In the past many companies used manual attendance or time tracking. Research indicates that this method of operating has led to error rates which range from 1 to 8 percent. When errors are made regarding time tracking they must be corrected, which requires a considerable amount of time. This ultimately results in a loss of productivity which is avoidable if a company switches to a system which is automated.
One way to achieve greater labor and time management is to place greater restrictions on overtime. Many experts recommend restricting overtime to no more than five percent of the total number of hours an employee works.
Integrate TLM Systems
When time and labor management systems are automated in part or in full, this can help eliminate problems such as data entry which is redundant, as well as omissions or errors. The biggest advantage of using these systems is that they make HR departments more efficient and streamlined.
Reduce Planned Absences
Absences which are planned should be limited when they are greater than ten percent of the total number of hours which are worked. When this is not done, it can become very challenging to operate without the overtime.
Change The Leave of Absences
Strategies must be created which are designed to change the leave of absences which are more than ten percent of the total number of hours which are worked.
Advanced Analytics Offered By TLM
Time and labor management systems offer a number of advanced analytics features which can help you achieve best practices, such as avoiding the loss of productivity resulting from errors, managing labor costs, providing crucial data regarding where resources are most needed, preventing time theft where employees clock in for their co-workers, and being in compliance with ACA regulations.
Because labor is one of the largest expenses that most companies will incur, any system that provides information on areas where costs will be lowered should be considered an investment that is worth the cost. Once you understand the importance of proper labor and time management, you must select and implement a tool that is capable of helping you effectively manage it.