Workforce Management & The Return On Investment: Timekeeping

The journey to optimum workforce management is a long and difficult one. Thankfully, we’ve been able to navigate the beginning portion of our trek with the aid of two “maps” on wireless forms and dispatching, respectively. As we continue this adventure, we encounter an aspect of workforce management that can be a figurative jungle to navigate: Timekeeping.

Time may, in fact, be the most precious resource available to man. Finite as it is, time becomes an extremely expensive commodity; the age-old idiom “time is money” comes to any business owner’s mind each time they review employee timesheets.

We return to the example of Paul’s Pool Cleaning Company:

Paul has expanded his company since we last visited him. He currently employs ten pool cleaners who are each supposed to work a standard eight-hour workday. The average hourly wages for a pool cleaner in the United States is $12.15.

$12.15
X     8
$97.20
X    10
$970.20

Paul is paying out $970.20 each day for work for hours worked. With twenty work days in a month, Paul ends up shelling out $19, 440 a month to his employees. Assuming Paul has utilized a dispatching solution after our discussion last week, we know his employees are cleaning six pools a day and 1,200 pools a month. At $100 per pool, Paul’s employees are generating $120,000 a month.

Now, let us assume Paul has his employees turn in paper timesheets at the end of each workday. On every timesheet, each worker is logging an hour of overtime each day that they have not worked. Overtime pay is time-and-a-half, resulting in Paul’s employees receiving $18.23 for one hour of work, or $115.43 each day. Operating within a standard work month we get:

$18.23
X     20
$364.60
X      10
$3,646.00

Each month, Paul is paying nearly four thousand dollars for hours inaccurately reported. With a timekeeping solution that can keep track of where his employees clock in and out, thereby keeping them accountable for any extra hours worked, we see the immediate return on investment for Paul’s Pool Cleaning Company. Since his employees can clock in and out directly on their handheld device, they no longer have to return to the office to punch a timecard or turn in a timesheet, saving fuel and extra time paid for travel. These numbers do not take into account the amount of money spent handling the other costs associated with traditional timekeeping; storage costs, printing costs, staff costs, and other additional costs. Time is money and money is time; to make the best of both, a timekeeping solution is definitely a door worth opening!

Next week, we continue our series with “Workforce Management and the Return on Investment: Vehicles.”

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