Tracking Employee Time Can Really Add Up

Managing employee time is an essential part of most businesses, from retail to manufacturing to professional.  The Patient Protection and Affordable Care Act (PPACA),  or Obamacare, has put new focus on employer calculations of time, in order to calculate the status of their workforce.  Here is a real-world example:

The PPACA mandates that employees with more than 30 average hours per week (based on a calculated look back period average of between 90 days and one year) be deemed full time for the purposes of health coverage.   This company’s cost will be a minimum of $2,000 (tax) up to the cost of family health insurance for this employee ($15,000)

A more global tracking issue that affects costs for all employees in your company is simply the LOSS of time due to inadequate data collection.  The Return on Investment (ROI) of investing in current technology and data capture is well documented in human error, auditing, and lost time.

In the following example, bad timekeeping costs this 50-member employee group more than $21,000 per year, or $439 per employee per year. This shows the effects of an inadequate data collection system*:

Human Error Factor Savings- A

A

     Number of Employees

50

B

     Average hourly rate

$10

C

     Average hours worked per week

38

D

     Total weekly payroll (A x B x C =D)

$19,000

E

     Human error factor

0.25%

     Total weekly savings (D x E)

$48

 

Auditing Savings- B

A

     Number of Employees

50

B

     Minutes saved per card

6

C

     Total pay period minutes saved (A x B=C)

300

     Total pay period hours saved (C/60)

5

     Hourly rate for Department Heads

$25

     Weekly Department Head savings

$125

 

Lost Time Savings- C

A

     Lost productivity per day

0.1

B

     Avg. employee’s rate/hour

$10

C

     Avg. wages overpaid/day/emp (A x B= C)

1

D

     Avg. wages overpaid/wk/emp (C x 5)

5

E

     Total number of employees

50

     Total wages overpaid/wk (D x E)

$250

 

Summary

A

     Human error savings (F1)

$48

B

     Audit savings (F2)

$125

C

     Lost time savings (F3)

$250

D

     Total weekly savings (A + B + C)

$423

 

Total annual savings (D x 52)

$21,970

 

Savings/worksite employee

$439

*Studies conducted annually by national payroll and staffing associations

BCN works closely with its clients to create efficient, cost-effective data capture of employee time, which gives clients greater control of scheduling and time management.  Call us at (800) 891-9911 for further information about tracking your employees’ time.  Or click here to contact us.

 

AndyHans_6698

 

Andrew (Andy) C. Hans, CEO

Telecommuting can give productivity a bump, but collaboration and face-to-face time can be a concern

Yahoo CEO, Marissa Mayer, recently announced that Yahoo employees working remotely from home will be required to start working in the office by June.  Mayer cites the need to focus on teamwork and collaboration and she feels this can best be accomplished by physically working side-by-side in an office environment.

Yahoo’s recent announcement has caused some companies that allow their employees to work from home to review their policies.  If you allow employees to work from home or are considering implementing a new policy, you should consider the following advantages and disadvantages of a telecommuting workforce.

Advantages: Productivity and job satisfaction

Several studies have shown that employees working from home are more productive than those working  in an office environment because they face fewer distractions.

Studies have also shown that employees that work from home tend to work longer hours than office based employees.

Employees also tend to shown slightly increased job satisfaction and better work-life balance.

Disadvantages: Problems in team-centered offices.

Managers in various studies agree with the advantages,  but many still prefer to see the employees in the office “just to be sure.”

Team-centered cultures show increased benefits of face-to-face contact and collaboration.

Remote workers also tend to miss out on promotions, often due to the lack of manager observation, even when the same manager recognizes the remote worker’s increase in production.

Several companies are experiencing success with combination schedules where employees are splitting time in the office (for team meetings, assignments, etc.) and working from home for a set number of days per week.

The work culture is changing, and telecommuting can be a tool your company can use to its advantages long as all parties know the potential risks and rewards.  A best practice is to outline clear objectives for both parties, host frequent collaboration events and review the program regularly where employer and employee share progress toward the outlined goals.

If you need help with this topic or other employment matters, contact BCN Services at 1-800-891-9911 or click here to be directed to our contact page.

 

Rick Dyer (200x193)

Rick Dyer, Vice President of Sales