If you’ve been wondering if it’s time to make the time collection switch to mobile and automated, remember one key rule about time: Time is money. Time affects everything related to the profitability of your construction company. One of the biggest contributors to project cost is labor. By organizing time and attendance data collection better, a company can save money with greater accuracy.
Use of old-fashioned methods of recording employee attendance is riddled with misconceptions. One myth is that the only people impacted are the employees themselves. The reality is that employee time affects labor costs which, in turn, affects every single quote delivered to a prospective client. Blow a quote out of the water with unexpected labor costs and it is a client that is also directly affected by error-filled labor data. By consistently mis-gauging labor costs, a company can get a reputation for unreliability. Automated time collection through mobile devices will help estimators properly cost out proposals, assuring that the final project cost is closer aligned with expectations from the onset.
Time Is Money:
How much time, thus money, can a company realistically expect to save with an automated employee time collection process? The manual method is naturally more time-consuming. However, there is often much more time involved than just the initial data collection. By the time an employee time card makes its way to the payroll department, it could be filled with notations, errors and attempts at correction. In order to clarify all this creative manual recording of information, a payroll clerk has to take the time to discuss the nature of the notations. Even after a chat to clarify, mistakes can still be made. Here are all the issues a single time card can create simply by being inaccurate:
- Payroll data entry error that requires re-issuance of another paycheck, cancellation of erroneous paycheck, and any necessary banking fees
- Inefficient use of time for all employees involved in clearing up questions and mistakes related to the time card
- Inaccurate planning and job cost estimation based on prior time reported for similar projects
- Company transparency can be at stake with regard to industry reputation
- Down the road data inaccuracies that can require greater complexity in correcting, such as reporting or payment of tax liabilities
Automated Is Better:
It is easy to see how problematic and wasteful of time manual time entry methods are. By opting for automation, the majority of these issues are resolved. In addition to greater accuracy in payroll management, job costing and industry reputation, there is one more area mobile device time collection addresses that manual methods simply can’t: real-time information. At the tap of a touch-screen, employees can manage their time-on-the-job reporting. This information is immediately available to project managers, estimators, payroll clerks and anyone else who needs to be in the loop. Real-time data is something regarded as highly valuable by any decision maker because, although time is money, knowledge is power.
Counting The Numbers:
How does the cost benefit translate into real numbers? Well, take out of the picture the ambiguity of time necessary to correct data entry errors. Simply look at the numbers of how much a single payroll clerk is paid annually as compared to mobile device time collection software. Consider the following example:
A construction company with 100 employees has a single payroll clerk to manage processing time-cards, calculating payroll, issuing paychecks, and recording necessary data related to payroll taxes. That single payroll clerk earns a salary of $40,000 annually. For much less than the cost of a payroll clerk, a company can become equipped with the latest time collection technology that can deliver more accurate performance in a fraction of the time.
When a company opts for the latest technology to manage their time collection and payroll, they get one more invaluable feature: technology that can grow with the company. After all, that is the goal isn’t it? If a company is looking for ways to maximize productivity with the latest technological innovations, that is a business interested in remaining competitive and growing. Software partners don’t just provide a single product. The best software providers are really a business partner, offering a suite of technology customized for a company’s needs at that moment. However, built into their design is the flexibility for adding on other modules in the future to meet new demands. Please contact our construction industry technology professionals to find out more.