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Blog | Time & Attendance

3 Important Reasons You Should Update Your Time and Attendance System

A modern time and attendance system is vital for your restaurant operation. It saves money on labor, keeps your employees honest, and much more. Learn why it’s time for your restaurant to kick the manual payroll processes for something better.

We all know how valuable a good time and attendance system can be in today’s restaurant landscape. But the manual processes that so many restaurant managers are still using can cause costly errors, waste valuable time, and make it harder to keep track of time theft and compliance certifications. So why are restaurants still using outdated manual systems?

1. Costly errors are more common with manual attendance and payroll processes

It turns out that the little errors managers commonly make can add up fast. What errors, you ask?

  • Keying in numbers incorrectly
  • Transposing numbers
  • Misreading handwritten records

These all-too-common manual time and attendance errors can account for 1-8% of total payroll costs – and the more locations you add to the mix, the more those costs go up. On top of that, managers waste an average of 7 minutes just to review a single timesheet. Think of all the other productive things you could be doing with that time!

2. The honor system for clock-ins is unreliable… and gets expensive

Roughly 65% of small businesses still use paper forms to record clock-in times. Unfortunately, these paper-based systems frequently lead to labor data inaccuracies. Why? Because they rely on the honor system. The honor system is nice in theory, but it’s not the most realistic method of tracking time and attendance. Of course, most employees are trustworthy. But once again, it comes down to human error —  45% of them unintentionally arrive early or clock in a few minutes late, Software Advice reports.

Out of employees who do pad their shifts (intentional or not), a study by Software Advice found that the highest percentage (41%) added between 11 and 20 minutes to the hours actually worked. For an average employee working five days a week, that’s roughly an extra hour per week. For a 50-person business, that’s an extra 50 hours per week added to your labor cost.

3. Manual systems make it harder to comply with wage and hour laws

With different hourly labor laws in states, cities, and counties, it can be difficult for restaurants to stay compliant with regulations, resulting in confusion and potentially expensive problems. A whopping seven in 10 companies fail to comply with wage and hour regulations due to inaccurate time tracking, employee misclassification, and lack of accurate workforce data.

Managers need help to make sure minors are only scheduled when they’re legally allowed to work and to ensure all schedules are compliant with local laws.

The solution? Modernize your time and attendance system!

Managers want their employment data integrated, accessible, and free of paper processes. They want a solution that’s easy to use, and one that minimizes human error. Modern time and attendance solutions like HotSchedules Time and Attendance can achieve all of this and more by reducing common payroll mistakes and improving the way you track attendance.

Learn how HotSchedules Time and Attendance can help your business.

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