Managing a workforce is never a one-size-fits-all approach. Each company operates differently from another, requiring its own set of standards and processes based on its needs. A company’s time and labor management strategy is no exception to this, as knowing how to manage a workforce of any size can come with unique challenges requiring specific solutions.
When choosing the best time clock software or time and labor management solution for your company, employers need to evaluate their needs and select a system that best fits their business.
Here is what you should know and some topics to consider:
What is Time and Labor Management?
Tracking, planning, and scheduling employee hours for the work performed is the essence of time and labor management. Specifically, these core facets make up the concept of managing time and labor throughout the workforce:
- Timekeeping and employee attendance
- Workforce scheduling
- Managing employee absences and leave
- Unique Compliance Requirements
Knowing the core elements of time and labor management, it’s time to identify the specific needs that arise out of the challenges your company experiences around these core elements.
Evaluating Timekeeping and Employee Attendance Needs
Capturing time accurately for each employee in the workforce can be difficult to manage. To help you find the best time and labor solution to ease your company’s timekeeping processes, ask yourself:
- How many employees make up my workforce?
- Is my workforce on-site at a central location, spread across multiple campuses, or moving from job-site to job-site?
- Is the system I am evaluating up-to-date with current time clock system standards?
- Will the system integrate with my current HR and payroll solutions? Should I switch to an all-in-one solution?
Once you understand the answers to these questions, you’ll be able to find the right solution to fit your timekeeping and attendance needs.
To ensure the business calculates accurate employee time from start to finish, consider choosing a timekeeping solution that can be widely accessible for both employees and managers to use. This allows flexibility regardless of the staffing structure of your company.
Some timekeeping solutions even offer a mobile option, allowing employees to clock in and out when traveling between job sites or multiple job campuses.
Timekeeping for Specific Industries
Depending on your company’s industry, there may be some unique timekeeping challenges your business faces. It’s important to take these factors into account as well, if they apply to you:
- Labor demand fluctuations for retail or food service
- Round-the-clock staffing for healthcare practices and facilities
- Job site changes for construction or repair companies
- Tracking volunteer time and labor for non-profit organizations
Evaluating Workforce Scheduling Needs
Scheduling techniques for each business can vary greatly. Some employers choose different scheduling frameworks because they fit with their business operations and objectives best.
Ask yourself, does my organization use:
- Traditional shift scheduling (day, night, and overnight)
- Flexible scheduling / Flex time
- Employee self-scheduling
- On-call scheduling
- Something else
Additionally, some businesses may be required to follow specific scheduling laws for their area of operation. For example, predictive scheduling laws are present in many localities nationwide.
Consider both your method of scheduling and any compliance requirements before choosing a time and labor management system. Whichever way you decide to schedule your staff, consider using employee scheduling software that can adapt to structured scheduling patterns and flexible time slots.
Evaluating Employee Leave, Absence Management, and PTO Accrual Needs
Ensuring your company follows through with all applicable employee leave laws is critical. When selecting a best-fit solution, managing compliance with employee leave laws should be simple and accurate. You will want to make sure your company can stay compliant with these federal and state leave laws, such as:
- Family Medical Leave Act
- State Sick Leave Laws
- Parental Leave
- Military Leave
Additionally, if your company also offers discretionary employee leave policies, your employee time clock system should be able to adapt leave and absence policies, including:
- Vacation leave
- Personal time off (PTO)
- Leave for health-related appointments
Lastly, PTO accrual tracking should be an automated process per employee. Your time clock system should be able to calculate PTO time accrued, whether you manage accruals by:
- Each hour the employee works;
- A periodic schedule (daily, bi-weekly, monthly, etc.);
- OR Front-loading PTO at the start of the year.
For managing employee leave and absences, an efficient leave management solution can ensure company-wide compliance with all applicable employee leave laws.
Wage and Hour Compliance
Effective time and labor management must cover the basic requirements; your company should also be mindful of wage and hour laws. These laws under the Fair Labor Standards Act (FLSA) are essential when considering a time and labor solution:
- Federal overtime laws
- Hours worked
- Recordkeeping laws
- Child labor laws in regards to employee hours
Keeping in mind the location or locations your business operates in is key for abiding by state and local laws regarding employee wages and hours. Whether the company exists in one state or multiple states, employers must be aware of the unique labor laws affecting time and labor management.
Common examples of labor laws unique to certain states and localities include:
- State-specific overtime eligibility and salary thresholds
- Employee rest and meal breaks
- Travel time pay
Please contact your state’s department of labor or visit their website to confirm any state or local-specific requirements.
Begin Your Time and Labor Management Journey
After assessing the details of time and labor management, ask yourself: Is your current time and labor solution efficient, scalable, and compliant? Is your current system up-to-date and capable of running your business the way you want?
Once you’ve gone through a thorough evaluation, you’ll hopefully be ready to make a decision. However, for those still having trouble, consider checking out this time and attendance buyer’s guide, which walks you through the entire process.
Or, contact us today, and we’ll help you evaluate your current needs when it comes to time and labor management.
