4 Surefire Ways to Reduce Unplanned Overtime and Save Your Labor Budget

Jul 09, 2023

A system is a method of solving a repeated business issue in a strategic and effortless way.
— Neil Patel, Forbes ‘Top 10 Marketer’ and revenue growth expert

Good systems solve business problems, including unplanned overtime. Does your company have an unplanned overtime problem? If so, you’re not alone.

Unplanned Overtime Kills Labor Budgets
Costly unplanned overtime eats into profits for many U.S. employers. A recent Deloitte study of over 800 companies revealed an average of 31 unplanned overtime hours each week per company.

According to the Bureau of Labor Statistics, the average U.S. employee works about four hours of overtime each week which is roughly 200 hours per year.

Let’s do the math on the BLS numbers. If the average time-and-a-half wage at your company is $20 per hour, that’s $4,000 in annual overtime per employee. If you have 25 employees, it adds up to $100,000. Ouch!

Automated Timekeeping is the Solution
An automated timekeeping system is specialized software that tracks employee time. Employees use a physical time clock, online portal or mobile app to punch in and out for of shifts. The software manages employee authentication, captures punches and tracks hours on ‘virtual’ timecards. Automated timekeeping systems provide time tracking data to payroll to make payroll processing easier and more accurate. Integration with a payroll system allows a time and attendance system to provide accurate time and attendance data to payroll without any manual intervention.

Automated timekeeping solves a whole bunchwide range of business problems, but we will focus on just one: budget-killing unplanned overtime.

Let’s dive into 5 surefire ways automated timekeeping reduces unplanned overtime to save your labor budget.

1. Automated timekeeping gives you an accurate picture of employee work hours.

Manual timekeeping systems like spreadsheets and paper timecards are wildly inaccurate. The American Payroll Association estimates that the rate of human error in timecard preparation is between 1% and 8%. Employees can’t recall shift start and end times after the fact and often round up in their favor. It’s human nature. Or they make math errors when tallying hours.

Employees aren’t the only ones who make errors. Managers make mistakes when entering timecard data into spreadsheets or filling in missed punches. Multiple studies, including one by PriceWaterhouseCoopers reveals an average spreadsheet error rate of 90% or more.

Bottom line? You can’t reduce unplanned overtime until you have accurate hours data of hours.

1. Manager alerts keep you informed when employees reach overtime status so you can stay on top of it.

Imagine if a supervisor received an alert when a team member was nearing the end of straight-time hours. The manager could quickly look at the time system app on their mobile phone and see which employees were under 40 weekly hours.

Would overtime warnings help your managers? Many companies that use automated timekeeping with manager alerts find that pending overtime warnings help supervisors make staffing adjustments before time-and-a-half kicks in. Consider also that a manager could use a mobile timekeeping app whether or not he/she was at the office.

Just as importantly, the warnings would work just as well for mobile or remote employees. Certainly, manager alerts are especially useful for geographically dispersed teams.

2. Punch lockout prohibits employees from clocking in too early.

Schedule enforcement is critical for large workgroups. If you aren’t watching, some employees will punch in a few minutes early. It happens to every employer. The unauthorized work time compounds, eventually adding mountains of unplanned overtime to your payroll. Full-time employees who punch in early can easily move into overtime by week’s’ end.

An intelligent clock with punch lockout can save your company a lot of money. Intelligent clocks sync to employee schedules. They have schedule enforcement features including punch lockout. Punch lockout prohibits an employee from clocking in before their shift starts. (Remember, though, you can’t require an employee to work off the clock.)

3. Scheduling rules notify you when you try to schedule an employee for overtime.

This software feature prevents overtime at the source: employee shift planning. Automated time and attendance systems have configurable rules to guide schedules. When a manager tries to schedule an employee past 40 hours, the scheduling tool can send an overtime warning. This allows the manager to schedule another employee who hasn’t maxed out their straight-time hours.

This is especially helpful for large teams and shifts of varying lengths. Managers don’t have to repeatedly tally hours for each employee in various scheduling scenarios because the system tracks it automatically. The software can also suggest employees who are available and not at risk of overtime.

If business demand requires overtime, the manager can make a conscious decision about how to allocate it–not allow it to accrue unknowingly through uninformed shift planning.

In summary, prevent payroll bloat by matching employee scheduling to demand and distributing hours evenly among team members.

Sources

https://www.amtrakoig.gov/sites/default/files/reports/OIG-MAR-2015-011 REDACTED - REV 10212015.pdf

https://www.eane.org/app/uploads/2021/01/Deloitte-Study_Paylocity-Exec-Sum.pdf

https://www.bls.gov/news.release/empsit.t23.htm

https://www.pwc.com.cy/en/Consulting/assets/spreadsheet-mistakes-issue-1-march-2016.pdf

https://www.americanpayroll.org/

THIS ARTICLE IS FOR GENERAL INFORMATION PURPOSES ONLY. BUSINESS FINANCIALS, INC. (BFI) IS NOT ISSUING SPECIFIC FINANCIAL OR TAX ADVICE. PLEASE CONSULT WITH A LICENSED FINANCIAL PLANNER, TAX ATTORNEY, OR ACCOUNTANT FOR ASSISTANCE WITH YOUR SPECIFIC SITUATION. IF YOU NEED HELP, WE INVITE YOU TO CONTACT US. WE WILL BE HAPPY TO MAKE RECOMMENDATIONS OR REFER YOU TO A LICENSED PROVIDER WHO MAY BE BEST SUITED FOR YOUR SITUATION.

Marketing Tips for Small Businesses: Making a Big Impact on a Limited Budget

24 Mar, 2024
Marketing Tips for Small Businesses: Making a Big Impact on a Limited Budget Small businesses often face unique challenges when it comes to marketing. With limited resources and fierce competition, finding effective ways to promote your products or services without breaking the bank is essential for success. Fortunately, there are plenty of cost-effective strategies that can help small businesses make a big impact. Here are some simple yet powerful marketing tips tailored specifically for small businesses: Know Your Audience: Understanding your target market is the foundation of any successful marketing strategy. Take the time to research and identify your ideal customers' demographics and preferences. This knowledge will enable you to tailor your marketing messages and reach your audience more effectively. Create Compelling Content: Content marketing is a valuable tool for small businesses to engage with their audience and establish their brand presence. Create high-quality, relevant content that provides value to your target audience, such as blog posts, videos, infographics, or social media posts. Consistent and engaging content can help you attract and retain customers over time. Optimize Your Website: Your website serves as the online storefront for your business, so it's essential to make a positive first impression. Optimize your website for search engines (SEO) to improve your visibility in search results and drive organic traffic. Ensure that your website is mobile-friendly, easy to navigate, and showcases your products or services effectively. Harness the Power of Social Media: Social media platforms offer a cost-effective way for small businesses to connect with their audience, build relationships, and promote their brand. Choose the social media channels that are most relevant to your target market and consistently share engaging content, interact with your followers, and leverage paid advertising options to amplify your reach. Collaborate with Other Businesses: Partnering with complementary businesses or influencers can help you expand your reach and attract new customers. Look for opportunities to collaborate on joint marketing campaigns, co-host giveaways, or cross-promote each other's products or services. Building strategic partnerships can be mutually beneficial and cost-effective for both parties involved. Having a strong sense of community and partnership can build a sense of trust between you and your target audience! Offer Discounts or Promotions: Everyone loves a good deal, so consider offering discounts, promotions, or exclusive offers to incentivize customers to choose your business over competitors. Whether it's a limited-time sale, a referral program, or a loyalty rewards program, providing value to your customers can help increase sales and encourage repeat business. Collect and Leverage Customer Reviews: Positive reviews and testimonials can significantly influence potential customers' purchasing decisions. Encourage satisfied customers to leave reviews on your website, social media profiles, or third-party review sites. Showcase these reviews prominently to build trust and credibility with prospective customers. Track and Analyze Your Results: Don't forget to track and analyze the performance of your marketing efforts to identify what's working and what's not! Use tools like social media insights, or email marketing metrics to measure performance and adjust your strategy accordingly. Continuously refining your approach based on data-driven insights will help you optimize your marketing efforts and achieve better results over time. In conclusion, effective marketing doesn't have to break the bank, especially for small businesses with limited resources. By implementing these simple yet powerful marketing tips, you can maximize your impact, attract new customers, and grow your business without spending a fortune. With creativity, consistency, and strategic planning, small businesses can compete and thrive in today's competitive marketplace. THIS ARTICLE IS FOR GENERAL INFORMATION PURPOSES ONLY. BUSINESS FINANCIALS, INC. (BFI) IS NOT ISSUING SPECIFIC FINANCIAL OR TAX ADVICE. PLEASE CONSULT WITH A LICENSED FINANCIAL PLANNER, TAX ATTORNEY, OR ACCOUNTANT FOR ASSISTANCE WITH YOUR SPECIFIC SITUATION. IF YOU NEED HELP, WE INVITE YOU TO CONTACT US. WE WILL BE HAPPY TO MAKE RECOMMENDATIONS OR REFER YOU TO A LICENSED PROVIDER WHO MAY BE BEST SUITED FOR YOUR SITUATION. Sources: www.business.org/marketing/advertising/marketing-tips-for-small-businesses/ Mastering small business marketing: A comprehensive guide (wix.com)

Boosting On-The-Job Productivity: Simple Strategies for Success

24 Mar, 2024
Boosting On-the-Job Productivity: Simple Strategies for Success In today's fast-paced work environments, maximizing productivity is crucial for both individual success and the overall efficiency of a business. Whether you're striving to meet deadlines, get that promotion, or simply get more done in less time, adopting strategies to increase on-the-job productivity can make a significant difference. Here are some simple yet effective tips to help you become more productive at work: 1. Prioritize Tasks: Start your day by identifying the most important tasks that need to be completed. Make a to-do list and prioritize tasks based on their urgency and importance. Focus your energy on completing high-priority tasks first to ensure that essential work gets done efficiently. You’ll begin to see your productivity in action as you cross off objectives on your to-do list, further motivating you to keep working! 2. Set SMART Goals: Establish specific, measurable, achievable, relevant, and time-bound (SMART) goals for yourself. Having clear objectives will help you stay focused and motivated throughout the day. Break down large tasks into smaller, more manageable steps to prevent feeling overwhelmed. 3. Time Management: Efficient time management is key to improving productivity. Set designated periods for work and breaks to maintain concentration and avoid burnout. Breaks built into your day can be a great way to give your brain a time to pause, and to refocus for what’s coming next. 4. Minimize Distractions: Identify common distractions in your work environment and take steps to minimize them. This might involve turning off notifications on your phone, closing unnecessary browser tabs, or finding a quiet space to concentrate when needed. Consider using productivity tools, such as Do Not Disturb, or browser extensions to block distracting websites during work hours. 5. Utilize Technology: Leverage technology to streamline your workflow and automate repetitive tasks. Explore productivity apps, project management software, or communication tools that can help you collaborate efficiently with colleagues and manage your workload more effectively. 6. Maintain a Healthy Work-Life Balance: It's essential to prioritize self-care and maintain a healthy work-life balance to avoid burnout. Make time for regular exercise, relaxation, and social activities outside of work to recharge and rejuvenate your mind and body. Remember that taking breaks can actually enhance productivity by preventing fatigue and boosting creativity. 7. Prioritize Sleep: Your sleep habits can make or break a work day. Getting a good night’s sleep is crucial for consistent productivity in the workplace. Your concentration, cognitive function, and even your ability to learn directly depend on how soundly you slept. 8. Seek Feedback and Adjust Accordingly: Solicit feedback from colleagues, supervisors, or mentors to identify areas for improvement and refine your approach to work. Be open to constructive criticism and willing to adapt your strategies based on feedback received. By implementing these simple strategies, you can enhance your on-the-job productivity and achieve greater success in your professional endeavors. Remember that productivity is not about working harder but working smarter, and finding the balance that works best for you is key to your long-term success. THIS ARTICLE IS FOR GENERAL INFORMATION PURPOSES ONLY. BUSINESS FINANCIALS, INC. (BFI) IS NOT ISSUING SPECIFIC FINANCIAL OR TAX ADVICE. PLEASE CONSULT WITH A LICENSED FINANCIAL PLANNER, TAX ATTORNEY, OR ACCOUNTANT FOR ASSISTANCE WITH YOUR SPECIFIC SITUATION. IF YOU NEED HELP, WE INVITE YOU TO CONTACT US. WE WILL BE HAPPY TO MAKE RECOMMENDATIONS OR REFER YOU TO A LICENSED PROVIDER WHO MAY BE BEST SUITED FOR YOUR SITUATION. Sources: 15 Examples of How To Increase Productivity in the Workplace | Indeed.com Increasing Productivity | Psychology Today

Hiring an Accountant? Here's What You Need to Know!

26 Feb, 2024
Hiring an accountant is a crucial decision for any individual or business. Whether you're managing personal finances or steering the financial ship of a company, having the right accountant on your team can make all the difference. But with so many options out there, how do you choose the right one? Let's explore some key factors to consider when hiring an accountant: Qualifications and Credentials: Look for an accountant who is qualified and certified. This ensures they have the necessary skills and expertise to handle your financial matters effectively. Check if they are a certified public accountant (CPA) or belong to professional accounting bodies. Experience and Expertise: Consider the accountant's experience in your industry or specific financial needs. An accountant with relevant experience will better understand your challenges and provide tailored solutions to meet your goals. Reputation and References: Do some research to gauge the accountant's reputation in the industry. Read reviews, ask for references, and seek recommendations from trusted sources. A good reputation is a strong indicator of reliability and trustworthiness. Communication and Accessibility: Effective communication is key to a successful accountant-client relationship. Ensure the accountant is responsive, accessible, and able to explain complex financial concepts in simple terms. Clear communication fosters transparency and helps avoid misunderstandings. Compatibility and Personal Fit: It's essential to find an accountant whose personality and working style align with yours. You'll be working closely with them, so it's crucial to feel comfortable and confident in their abilities. Trust your instincts and choose someone you can build a positive rapport with. Services Offered: Consider the range of services offered by the accountant and whether they align with your needs. Some accountants specialize in tax preparation, while others offer broader financial advisory services. Choose an accountant who can provide the specific services you require. Technology and Tools: In today's digital age, technology plays a significant role in accounting processes. Ensure the accountant utilizes modern tools and software to streamline financial management and enhance efficiency. This ensures your financial data is handled securely and accurately. Fees and Billing Structure: Discuss the accountant's fee structure upfront to avoid any surprises later on. Some accountants charge hourly rates, while others offer fixed fees or retainer agreements. Choose a billing structure that suits your budget and financial preferences. Client Support and Follow-Up: A good accountant doesn't just crunch numbers; they also provide ongoing support and guidance to help you achieve your financial goals. Look for an accountant who is proactive in offering advice, conducting regular reviews, and staying updated on relevant changes in tax laws and regulations. Gut Feeling: Finally, trust your intuition. If something doesn't feel right or if you have doubts about a particular accountant, it's okay to keep looking. Hiring an accountant is a significant decision, so take your time and choose wisely. In conclusion, hiring the right accountant is a crucial step towards achieving financial success and peace of mind. By considering these key factors, you can make an informed decision and find the perfect accountant to support your financial journey. Happy accounting! THIS ARTICLE IS FOR GENERAL INFORMATION PURPOSES ONLY. BUSINESS FINANCIALS, INC. (BFI) IS NOT ISSUING SPECIFIC FINANCIAL OR TAX ADVICE. PLEASE CONSULT WITH A LICENSED FINANCIAL PLANNER, TAX ATTORNEY, OR ACCOUNTANT FOR ASSISTANCE WITH YOUR SPECIFIC SITUATION. IF YOU NEED HELP, WE INVITE YOU TO CONTACT US. WE WILL BE HAPPY TO MAKE RECOMMENDATIONS OR REFER YOU TO A LICENSED PROVIDER WHO MAY BE BEST SUITED FOR YOUR SITUATION. Sources: How to hire an accountant: here’s what you should look for (edmunds.com.au)
Share by: