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Mistakes to Avoid When Choosing the Right Time Tracking Software

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Today, most organizations have shifted from traditional punch cards to employee time tracking solutions that offer automation and accuracy. The market has a wide variety of time tracking software, and it can be a daunting task to select the right one for your business. 

Here are some mistakes to avoid when selecting the right time tracking software. 

Ignoring Platform Compatibility 

 If you want the organization on top of every process, you need to consider the platform compatibility of the time tracking solutions. The software should work on diverse platforms like mobile, kiosk, and web and support manual entries. For example, if the time tracking software is compatible with mobile platforms, the remote teams can record time-in and time-out through the time tracking mobile app. 

The web compatibility ensures employees can access the time tracking app through browsers and record their job hours. Organizations can install Kiosks at their offices and manufacturing units which can be used by employees working from company premises. 

The employee time tracking solution you select must be compatible with diverse platforms that will allow organizations to use a one-time tracking solution for the entire organization. 

Not Understanding the Importance of Productivity Insights 

Productivity is crucial for every organization. Companies implement different strategies to increase productivity that ultimately increases profits. It also allows organizations to pay higher wages to employees and invest in their future. Managers need to ensure employees are spending their work hours on activities that help organizations achieve their production goals. 

The employee time tracking solution that you employ in your organization should provide you productivity insights. The data collected by software should help you determine which employees are pulling their weight and which employees are underperforming. 

Managers can investigate employees that are underperforming and provide opportunities for training that will help increase employee productivity.

Neglecting Labor Law Compliance 

Every organization needs to comply with the rules and regulations of the Fair Labor Standards Act. As per FLSA, organizations must keep accurate time records for non-exempt employees. The Fair Labor Standards Act decides the minimum federal wages for employees. The FLSA also required employers to pay overtime at a 1 ½ time the regular pay rate.

The time tracking solution should accurately record the time-in and time-out for all employees, including remote teams. It should create simple break entries in shifts and record break timings to ensure compliance with local labor laws. The software should generate FLSA compliant overtime reports and payroll and provide clarity in the calculation of wages and overtime. 

The software should have algorithms to implement custom rounding rules to ensure payroll and records accuracy. 

Ignoring DCAA Compliant Timesheets

 The DCAA compliance is mainly applicable to non—exempts employees who are paid hourly wages.  The software should record accurate data in timesheets and payroll. 

The timesheets should be DCAA compliant, which means the auditors should track the date and time, source of data, and see the timesheet data and changes made. In simple words, the timesheets should have an audit trail to authenticate data. 

Dismissing the Importance of Payroll Reports

The federal and state labor laws have clear guidelines on how often employers need to pay non-exempt employees. The payment date might differ with employers. Some employers pay non-exempt employees every Friday or Tuesday. Whatever the payday, the employer needs to run the payroll on the same day for each period. 

For efficient payment of non-exempt employees, the time tracking should have features like instant payroll reports that will enable employers to pay their employees on time every pay period. The software should generate payroll reports with one click and help the employer disburse wages on time every week. 

Neglecting Overtime Calculation Functionality 

Organizations are required to pay overtime to non-exempt employees. The software should calculate how many extra hours the employees have worked in a 40-hour workweek. It should automatically calculate overtime at the designated overtime rate and prepare payroll reports accordingly.  

If the software does not automatically calculate overtime wages, it might lead to FLSA non-compliance. Manual calculation of overtime wages can be a time-consuming affair and might delay weekly payments to non-exempt employees. 

Ignoring the Importance of Biometrics 

The use of biometrics for recording job hours is common in organizations. It reduces the risk of fraud and gives the manager a complete picture of the staff present at any location. Leading time tracking software comes with face recognition features that ensure only the right person accesses the time tracking app. 

To sum up, these are some mistakes you need to avoid when choosing the right time tracking software. 

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