Construction companies have a lot on their plate, especially if they do prevailing wage projects. Keeping track of employees’ hours might seem like a small part of the picture, but for government contractors, it can be a source of risk due to the requirements associated with payroll for prevailing wage work.
Many companies are still using manual methods to track time, like handwriting time cards. This method leaves you exposed to multiple points for errors, from misinterpreting handwriting to incorrectly keying in hours and data as you move it from timecard to payroll system to official certified payroll report. It’s also difficult for workers to accurately track their hours and change work roles by hand in the field, leading to additional errors.
Even those that use digital time tracking may rely on manual methods to transfer the information into a separate payroll system. This is because the two sides, time tracking and payroll, aren’t always fully integrated. That’s where digital time tracking and integrated payroll software enters the picture.
Let’s look at five reasons why construction companies should switch to digital time tracking.
Time and Cost Efficiency
The construction industry is notorious for tight deadlines, thin project margins and strict budgets. Manual time-tracking methods, such as paper timesheets and punch cards, can be time-consuming and error-prone. Digital time tracking eliminates the need for paper-based systems, saving time and reducing costs associated with printing, storage, and handling of paper timesheets. With digital time tracking, employees can clock in and out using their smartphones or tablets, making the process faster and more convenient.
Manual time tracking can lead to inaccuracies, whether it’s from human error or intentional time theft. It also makes it easier for workers to change work roles in the field as needed, which is key for prevailing wage projects. Digital time tracking reduces the likelihood of these errors by providing real-time data that is accurate and reliable. It’s also easier to find and correct errors digitally. With digital time tracking, managers can monitor employee time and attendance data in real-time, allowing for timely intervention and correction of any discrepancies.
Compliance with Labor Laws
Construction companies must comply with various labor laws and regulations, including overtime laws, minimum wage requirements, and record-keeping requirements. Prevailing wage work has even more rules to comply with. Failure to comply can result in costly penalties and legal disputes. Digital time tracking can help construction companies stay compliant by providing accurate and up-to-date records of employee hours worked and breaks taken.
Digital time tracking provides managers with real-time insights into employee productivity, enabling them to identify areas where productivity can be improved. Managers can use this information to identify training needs, optimize work schedules, and provide feedback to employees. In addition, digital time tracking can reduce the time spent on administrative tasks such as tracking hours worked, allowing managers to focus on more critical tasks.
Integration with Other Systems
Digital time tracking systems can be integrated with other software systems for a more smooth, quick, and accurate payroll process. This integration can streamline administrative tasks, such as tracking employee hours, calculating payroll, and generating reports, making the process faster and more accurate. The trick here is to use a single system that is made to work together or to ensure that your digital time solution offers an export that seamlessly works with your payroll system.
Digital time tracking can benefit construction companies in several ways, from making your payroll more accurate to reducing the admin time and risk associated with payroll mistakes. Fortunately, it’s not a difficult problem to solve. By moving to digital time tracking and making sure it works with your payroll system you can eliminate or greatly reduce most of these problems.
The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.