Keeping track of employee hours, including overtime, is an essential part of any business. This task has become more complex with a greater number of people working remotely. Also, there are so many options available, it can be difficult to know which is best for your company.
The good news is that, once you understand the pros and cons of each time-tracking solution, you will be able to determine which is best. The important thing is to select a method that suits your unique business needs and budget.
This article covers the main options for keeping track of employee overtime. It will help you make an informed decision that will save you time and money.
One of the simplest employee time-tracking solutions you can set up is a basic timesheet. Microsoft Word and Excel, as well as Google Docs and other word-processing software, have templates you can use. These are fillable with basic calculations for work hours and pay totals.
While this is technically one of the cheapest time-tracking solutions, remember that time is money. It may be fast and easy to set up, but that is where the advantages end. Depending on the size of your company, you may have to spend a lot of staff time double-checking the accuracy of timesheets, including different pay rates for overtime.
Another drawback of this method is that it is prone to human error. It also has the limitation of having to complete it from a computer. This limits the ability of employees who work in the field or otherwise on the go.
Timesheet calculators are a slightly more robust time-tracking solution. These are applications that allow employees to enter work hours, and the program does the rest.
Employees can “clock in” and “clock out,” and the application tallies the time worked and calculates the pay. Many of these also allow you to export timesheets in Word, PDF, or other formats.
There are a lot of free-time calculator applications out there. The downside is that free versions also have serious limitations. You may be hard-pressed to find a time-tracking program that allows you to automatically calculate overtime pay.
A final option for tracking employees’ overtime is to use time-tracking software. These are usually cloud-based programs that allow employees to input hours worked, as well as personal, vacation, or sick leave.
These offer real-time reporting. So, the information employees enter is immediately accessible to supervisors or payroll personnel. This can be extremely useful for budgeting since you can easily project overtime before it happens.
Perhaps one of the biggest advantages of these is versatility. You can set it up to be as simple or detailed as you like. And such programs allow you to export timesheets into Word or Excel documents if you need a hard copy.
Another huge benefit of time-tracking software is accuracy. You can let the program do the work and avoid the hassle of having to double-check calculations manually.
Quality time-tracking software programs are not free, but there are many reasonably-priced ones. Also, the time your employees and your payroll personnel save may more than make up for the cost of the program.
Find a Time-Tracking Solution That Fits Your Needs
Now that you have some options, you can decide which time-tracking solution is best for your business. Remember to weigh all the pros and cons before making a decision.
TimeTrakGO is a web-based time clock software that offers employees and managers an easy-to-use interface. With its Projected Hours feature, you can see potential employee overtime before it happens. Reach out to us today to learn more about this product and how it might help your business run more efficiently and save you money on payroll.