Being a business owner is tricky, and sometimes you have to make tough financial decisions. The highest expense for most businesses are their employees. You have to pay for time worked, provide paid time off, and sometimes even match 401k contributions. Every month you have to compare your labor costs to everything else, such as sales, equipment, merchandise, and more. If your labor costs are too high compared to your profits, your business may fail.
Another reason to look at your labor practices is to ensure everyone gets a fair share of hours. You will need to determine who is making the most sales, who doesn’t, and who needs more hours—keeping accurate track of your employee’s times, what they earn, and what they deserve.
Having a time clock app in place to help you keep track of this data can be an essential step in ensuring that your business remains as profitable as possible. During busy times of the year, you may need more hands-on-deck, but during slow times of the year, you may have to cut hours if labor costs are too high.
How Can a Time Clock App Help Lower Labor Costs?
The best thing about a modern timesheet management solution is that it allows you to compare how much an employee is making versus how many sales they make during the course of their shift. It enables you to run daily reports to see exactly where each employee is spending their time. This will allow you to see what you made and compare it to the cost of being open. Having accurate reports like this is a critical key for remaining profitable.
Having an efficient time clock app will allow you to see who is punching in early to try to get extra overtime. This can be a considerable cost in labor, and you want to make sure you are offering overtime only when it is necessary for the business. If it is unnecessary, you will be able to see that through these reports and take action to ensure overtime is not reached.
When employees can see their set schedule in the time keeper app and understand that every hour worked will be accounted for on their paycheck, they will be more accountable. They will know to punch in and start work right away. This can also make them more productive and help increase sales when everyone understands how important it is to get things done in a timely manner.
Cutting Labor Costs Can Save Your Business
To run a successful business, you have to be willing to make hard decisions. It is important to look at all sides of a situation, and that includes how much your employees are working. If someone is intentionally getting ten hours of overtime weekly, it may mean that you are paying them more than the amount of work they are putting in.
If someone is taking paid breaks that are too long, you could be spending a lot of extra valuable money. Money that can be better spent on more critical business operations. Luckily, with online time clock software, you can set up alerts and reminders to help employees stay within their scheduled breaks and work hours. It is crucial as a business owner to be aware of all of these things. By doing so, you will cut labor costs and be more profitable.
Implementing a time clock app can be an excellent way to keep track of valuable time tracking information. Owning a business is difficult, and keeping track of everything can be tedious. Having an online timecard system that automatically tracks employee work hours and time off can be a huge stress reliever.
Laila Azzahra is a professional writer and blogger that loves to write about technology, business, entertainment, science, and health.