Our partner is an oil and gas industry support contractor operating in one of largest cities in Texas. And as they grew from a 7-man operation to over 37 full time employees in less than a year, they knew that remaining competitive would require continually finding new ways to drive revenue and profitability to their bottom line. As they continued to win various contracts of business throughout the state and teams of employees were deployed to various job sites, they needed a better way to manage their growing workforce.
They relied heavily on our services for Human Resources Management, Workers’ Compensation Insurance & Claims Management, Payroll, Safety Training, and Benefits.
One area of particular concern for this partner was their current employee timekeeping system. Records indicated that they were losing money by untracked employee breaks, extended lunches, and over-approximated punch times. A conservative estimate indicated that if even 15 of their employees were receiving pay for a mere 4 minutes of “wasted” time per day, it would total 1380 minutes (23 hours) of additional pay per month. Since their average pay rate was $17 per hour, they were paying an extra $391 each month for labor worked.
Our partner was also losing money as a result of human error, which was compounded further when the cost to re-issue correct payroll amounts was detected and reported. The American Payroll Association estimates that the rate of human error in time card preparation is between 1% and 8%. Based on their payroll, a conservative 2% human error equated to approximately $217 in erroneous wages paid per month.
In addition to wasted labor minutes and human error, manual time card preparation was beginning to add up, as well. The office and site managers were spending increasing amounts of time each pay period to prepare and handle time cards, compute time card totals, verify time card totals, compute shift and department totals, and recreate lost or damaged time cards. Manually preparing 37 time cards took an estimated 4.31 hours to complete. At their average clerical wage of $13 per hour, time card preparation alone was costing $224 per month.
Our partner evaluated all of our timekeeping options and chose our time and attendance software with a biometric authentication component. This solution included timekeeping software which was installed on all of their internal and field Windows based devices. This method has become their preferred solution for tracking multiple job sites and job codes, and has enabled their office and site managers more options organizing data.
Also, unlike their old paper time cards and traditional time clocks, the new system assured that the right employee was clocking in and out via biometric authentication, and that the employee was only getting paid for time worked with electronic time records and automated processing.
“My ability to create a variety of reports that meet our data needs, such as the sorting and filtering options in the Payroll Summary Report is a tremendous help in organizing our data. Our new system has also cut down human-error as our employees have a self-service portal where they can view and approve their time cards, view schedules, request time off, view accrual balances and update personal information. This method has truly relieved our field supervisors of time consuming administrative work while empowering the appropriate employees. I’m only sorry we didn’t implement it sooner.”
From businesses of 5 to 500 or more, we scale beautifully to fit your needs. Get in touch, we will call you.