If you put $100 in a Mason jar, bury it 2ft deep in your backyard, and dig it up a year later, the jar will still have exactly $100. That’s a proven scientific fact. Unfortunately, you won’t get a better return with a savings account these days, and the stock market could snatch away the entire Benjamin plus broker fees. So, where does a small business turn to for a solid investment…one that has a proven track record? The best investment is an employee time clock app that saves 5% or more on labor costs.
Hourly Wages Create a Labor Cost Problem
The highest expense for most service businesses is labor costs, often up to 80% of total operating expenses. Management can negotiate salaries, but they are a constant. The wages for hourly employees are harder to predict and control, and they are rising. Rising labor costs are challenging due to remote employees without direct supervision. Hours fluctuate, and overtime can accrue. The best way to control labor costs is to track, manage, and control employees’ hours with strict diligence. The worst way to track employee time is by handwritten timecards.
The Remote Employee Solution
A more efficient method is using a system in which remote employees must call to clock in and out of jobs. A telephone timekeeping system captures accurate time and serves as an employee management system. Timecards are automated and can be exported to payroll services such as QuickBooks, ADP, and Paychex. Users will pay a monthly fee for the timekeeping service, but the investment yields a direct return in payroll savings and in time saved processing payroll. A study by the American Payroll Association estimated that a telephone timekeeping system could save a small business between 2 and 6% on payroll expenses. A 4% savings means that every $1.25 invested in a telephone timekeeping system could yield $7.
Use Mason jars to store canned vegetables, not to bury cash. Invest in a product in which you are the expert – your own small business and choose your strategy wisely. The solution is quite simple: a telephone timekeeping system for proven results that yield an immediate return on your investment.