Companies lose an average of 5% of revenue annually due to payroll process inefficiencies, errors and fraud. Out of this 5%, 99% of the errors are due to poor employee workforce administration.
Despite being an important aspect of a company’s payroll, workforce administration does not get the kind of attention it should. Managing it is too big a goal given that many companies do not even track employee absence! Leave management processes should hold a significant place in company’s policy since paid time off significantly impacts a company’s bottom line.
Organizations today have a challenge to plan their diverse work force to manage giant and complex operations across globe.
Organizations need to operate for long hours with motivated staff to provide customer delight while they work in any location at any time. Customer experience is key to success of any organization; thereby to cater to long work hours, work force administration is one of the biggest task.
Generally, it is the responsibility of both line managers and HR department to track employee leave and attendance.
Nevertheless, when it comes to planning or decision-making, management fails to get the kind of data needed to estimate the overall picture. This happens because either such data is not tracked at all or the lack of automation leads to distorted data. Also, all the manual work involved may discourage the staff from pursuing the added responsibility.
Key challenges that arise due to poor workforce administration:
1. Time theft – According to a survey done by Kessler International 80% of the workers admitted that they have done time theft at least once. This may not seem big to individuals however this data cumulated across month and years impact the bottom line for sure.
2. Non-productive effort – Employees should focus on the work given to them and not spend time in menial tasks which take up a lot of time which is non-productive.
3. Excess payment in over time – Unable to track proper in time and out time for employees lead to a lot of employees asking for entitlement for over time. This leads to un-necessary loss of revenue.
4. Legal issues – A death of data regarding how much employees worked can come back to haunt you in the form of a lawsuit. As per shops and establishment act, if workers work for more than 9 hours a day or more than 48 hour a week, extra wages should be given at twice the ordinary rate.
5. Poor Employee engagement – Employees under stress can cost 40% more than the average worker cost due to absenteeism, productivity loss and health care. With a system which takes up lot of time and does not track the workforce management effectively. Organizations need a solution that automates their system and engage the employees in a better way. Research shows that 7 out of 10 employees feel more engaged when they use an automated & easy to use leave & attendance system
6. Incorrect payroll management – Not having leave and attendance coming correctly might create a nightmare for employees and the organization. It is important to have a self-service attendance and leave management system which enables and accurate payroll.
Organizations today have a need for a smart, dynamic solution that can help in automating HR processes related to time and attendance management to handle above challenges effectively and provide its management quick/ real time information about workforce deployed across all location spread across globe.
Apparently, businesses have greatly started taking interest in employee attendance management system and workforce management software that are breakthrough alternative to massive paperwork that is both time-consuming and costly. Moreover, it restricts the scope for manual errors.
Key features to look out for in Workforce Administration:
1. Integration with biometric devices to reduce time theft
2. Dynamic shift & roster planning for managing complex work schedules
3. Intelligent attendance and leave rule based engine
4. Dynamic Reporting
5. Integration with payroll system for end to end processing
6. SMS clocking for contingent workforce
7. GPS tracking for contingent workforce
8. Communication emails for notification at each step
9. Web based punches based on IP management for regular operational staff
10. Managing the attendance grace period
PeopleStrong Alt’s leave and attendance management software ensures that it is available anytime, anywhere, online and on mobile devices with geo fencing feature. It delivers a simple user experience that drives adoption across the workforce, giving companies the ability to streamline leave-attendance and approval processes.
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Payroll and HR are at the core of every organization. With new-age workforce distributed across geographies, organizations are grappling with multiple payroll processes, numerous pay-components, and inconsistent tax and compliance handling. Alt Payroll provides intelligent payroll management solution for building smarter workplaces.
Get in touch with our payroll and compliance executive to know more about Alt Payroll and how we can manage your payroll better.