An employer’s most valuable asset is human capital. Managing employees’ time and labor is a crucial part of running a business, since it is often the largest expense and impacts production, growth, and profitability.

Improving the time and labor management process begins with accurate and reliable data. In this article, I’ll discuss how an automated system can produce the data today’s employers need, increase productivity, and save money while doing so. Be sure to download the eBook!

Accuracy & Reliability

Collecting employees’ time manually can be a very costly process that can produce inaccurate and unreliable data. Utilizing an automated timekeeping system eliminates inaccuracies caused by illegible handwriting, human error, and the “honor system”.

Employers can get more accurate and reliable data with:

  • Electronic Data Collection: Employees enter time through a secure web browser, time clock hardware, or mobile device.
  • Manager Alerts: Supervisors receive alerts of late in/out punches and can address promptly.
  • RealTime Reports: Employers can quickly and conveniently pull reports for audit and feel confident in their accuracy.

Increased Productivity

An automated timekeeping solution can boost productivity for your employees and your human resource or payroll department. Reviewing and auditing time cards, calculating hours, and duplicate data entry can add up to hours spent each pay period, becoming a tedious and overwhelming process.

Empower your staff to be more productive with:

  • Quicker Clock Access: Whether at an employee’s PC, a staff kiosk, or a centrally‐located time clock, quicker access eliminates time edits, grace periods, and unnecessary rounding.
  • Single Data Entry: With electronic collection, data is captured once and transferred to the payroll system.
  • Easy File Maintenance: Timesheet data is maintained within the system, keeping employers compliant and eliminating time‐consuming and inefficient filing processes for HR staff.
  • Faster Payroll Processing: Payroll personnel can reduce time spent, increase accuracy, and process payroll in a fraction of the time.

Return on Investment

Implementing an automated timekeeping solution can provide a return on investment quickly, usually within the first year. Employers may recognize both direct and indirect savings from reducing overtime costs to allocating resources appropriately.

Employers can reap these cost‐saving benefits:

  • Reduced Human Error: The American Payroll Association estimates that the rate of human error in time card preparation and calculations is between 1% and 8%. A 2% error rate on a $15,000 payroll would equal $300 in erroneous wages (each pay period).
  • Elimination of Time Theft: Electronic time collection systems help control long lunches, breaks, and tardiness. Hardware terminals like biometric clocks recognize individuals and eliminate “buddy punching”.
  • Reduced Overtime: With Supervisor alerts and real‐time reports, overtime costs can be better managed (or eliminated). Automated systems can help business owners recognize department trends with overtime and allocate resources appropriately.
  • Saved Wages: Increased productivity from employees, HR, and payroll personnel will allow valuable resources to focus on high‐payoff activities, increasing the organization’s growth and profitability.


There are many benefits to utilizing an automated timekeeping system. Managing your employees’ time and labor begins with accurate and reliable data. In addition to increased productivity, an automated system can reduce burden on staff and provide many cost‐saving benefits. Implementing this type of solution can help reduce human interference and errors, keep employers compliant, and get key personnel back to business.

If you’d like to learn more about how an automated timekeeping system could benefit your organization, download this free eBook or sign up for a free demo today!

Amy Robertson

From her office in Roanoke, VA, Amy manages “all things marketing” for MPAY. Her most recent bragging rights include becoming a Net Promoter Certified Associate.