Your Time is Our Business

5 Critical Insights In Reducing Labor Costs

5 Critical Circle

adobedownloadbutton Top 5 Employer Compliance Issues


absent1. Absenteeism:

Employee absence has a huge impact on your organization… the best way to control it is with advanced absence management software. Whether the absence is planned, incidental, or extended, it carries costs such as overtime, risks and productivity hits.

Costs: On average, 35 percent of payroll is linked to employee absence. This includes the cost of paying absent employees as well indirect costs, such as lost productivity and the hiring of replacement workers.

Risks: Without workforce attendance systems to manage employee absence, organizations risk failing to comply with collective bargaining agreements, government regulations, and statutory leave laws.

Productivity: Absence is a productivity killer — on average, incidental, unplanned absences result in 19 percent of net lost productivity per day.

Absences have three areas of financial impact:

  • Direct costs for the benefits or wages paid to employees while absent plus overtime for replacement workers
  • Indirect costs for lost productivity
  • Administrative expenses, whether due to internal staffing and overhead, or to vendor services

Many employers have identified the direct costs of certain types of absences, such as vacations, holidays, and disability benefits. The direct costs of absence totaled 12% of payroll, including 8% for vacations and holidays (scheduled or planned time off) and 4% for sick, disability, and workers’ compensation benefits.

Replacement labor expenses: the costs for employers to have other individuals do the work that an absent employee is unable to do. Replacement worker costs are hard dollar expenses, representing added pay and benefits for extra staffing, or costs for overtime, temporary labor, and outside contractors.

Net lost productivity value: a soft dollar measure of potential lost revenue to the extent that the work is not fully “covered” by replacement labor. Fewer customers are served or fewer sales are completed. Potential revenue is lost as employees are working longer hours at an overtime rate. In reality, a for-profit employer’s lost productivity value could be much higher, since the work needs to cover not only employee expenses but other business costs as well, plus revenue on the work performed.

The cost of absenteeism can be controlled with the fully automated, easy-to-own absence management solution from IntegriTime. It will help you reduce the administrative headaches and compliance risk associated with leave laws –sick time, late arrivals, early departures, and extended breaks – all in one place.

The Points & Incidents module helps you automate and streamline the application of your attendance and leave policies no matter how complex. Enforce rules consistently, control costs, and minimize the risk and productivity effects associated with employee absence.

To control the impact of absenteeism, you need to see trends so you can control costs. You need to manage your policies so you can minimize compliance risk. And you need to identify workers with attendance issues so you can improve workforce productivity.

There is no question that employees need and deserve sufficient time for planned absences. They will inevitably take unplanned incidental and extended absences. To the extent the latter, absenteeism, gets out of control, employers’ ability to accomplish their objectives is thwarted and their costs of doing business increase. Employers who understand the full financial and other consequences of absenteeism are better positioned to adopt the tools and processes needed to manage them.



2. Compliance:

Wage and hour lawsuits pose the single greatest threat to your business!

DOL (Department of Labor) audits can have significant financial ramifications, are a major blow to productivity and employee relations, and put companies under increased scrutiny.

Without the right workforce management tools, you don’t have the information or visibility to foresee that your organization could be at risk for unnecessary litigation and subsequent financial challenges. The DOL estimates that more than 80% of companies are out of compliance with federal and state wage and hour laws. One-third of U.S. employers reported being hit with a wage-and-hour claim within the past year.

What Is the Fair Labor Standards Act? The Fair Labor Standards Act (FLSA), enacted in 1938, advocates for workers by establishing minimum-wage, overtime, and child labor standards in the United States. These standards usually apply only to hourly employees, but some salaried employees also are covered under FLSA.

Who is the Wage and Hour Division (WHD)? The Wage and Hour Division was created with the enactment of the Fair Labor Standards Act (FLSA) of 1938. The Division is responsible for the administration and enforcement of a wide range of laws which collectively cover virtually all private and State and local government employment. The Division is comprised of a nationwide staff of investigators, supervisors, and technical and clerical employees responsible for enforcing FLSA, Government Contracts labor standards statutes, the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, and the Family and Medical Leave Act.

There are several items that employers must enforce to minimize potential litigation:

  • Lunch Laws (Meal Breaks) & Paid Breaks (aka Coffee Breaks)
  • Failing to pay overtime correctly
  • Failing to pay for all hours worked (donning and doffing)
  • “Portal-to-Portal Act” of 1947
  • FMLA- Family and Medical Leave Act
  • Recordkeeping: FLSA Compliance & DOL Regulations
  • NEW: Affordable Care Act (ACA)- Beginning January 1, 2015 for organizations with 100 or more employees and January 1, 2016 for organizations between 50 and 99 employees, you will be mandated to provide healthcare coverage to all employees working 30-plus hours per week. Your organization needs to start planning for it right now. The Affordable Care Act will not only impact the U.S. healthcare system, but the way you manage your workforce as well.

Download our Top 5 Employer Compliance Issues- How IntegriTime Solutions will minimize Compliance risks and costly litigation

Top 5 Employer Compliance Issues

IntegriTime helps you minimize compliance risk by providing high-quality information that’s centralized, comprehensive, and available in real time. Our automated solutions help you keep pace with government and industry regulations so you can apply appropriate policies and rules easily and accurately to help facilitate compliance. And you get a single reliable record of all employee information to document that these policies are being applied consistently and fairly throughout your organization.



3. Employee Time Theft:

Employee time theft costs American businesses hundreds of billions of dollars each year. This results from employees who “steal” from their employers by willfully wasting time for which they are paid. A leading authority on employment issues has conducted numerous surveys relative to time theft and concluded that the average employee “steals” approximately 54 minutes per day, or 4.5 hours per week, from his/her employer. This totals nearly six full workweeks per year!

You could be losing more than 10% of your payroll through the following forms of time theft:

  • Buddy Punching
  • Late arrival or early departure
  • Taking long lunch hours and breaks
  • Slowing down the work pace to create overtime
  • Excessive socializing and personal telephone calls
  • Handling personal business at work
  • Using Company time & facilities to operate another business

The FBI calls employee time theft “the fastest growing crime in America!”

The U.S. Chamber of Commerce estimates that employee time theft costs businesses nationwide over $230 billion a year.

The Boston Globe and Denver Post newspapers recently reported that U.S. companies lose nearly $400 Billion per year in lost productivity due to “time theft” or loafing.

Time theft is not confined to any one type of person or industry. It applies to “white collar” and “blue collar” employees in every type of business, institution, profession and governmental agency. It occurs in every organization with a payroll.

The majority of executives surveyed state that permanent employees steal more time than temporary employees. Also, the greater the employee’s seniority, the greater the chance they will steal time from their employer. Office personnel steal more time than manufacturing employees, and employees under thirty years old tend to steal more time than older employees.

You are being robbed of hundreds, maybe thousands of dollars per year. While much of this lost time is very difficult to control, eliminating time theft due to late arrivals and early departures can add profits to your bottom line.


emp service

4. Employee Self Service:

Are your Human Resources, Payroll Managers or Supervisors spending too much time answering benefit balance questions or time off requests?

Employee Self Service statistics (Nucleus Research, Inc.):

  • On average, HR receives 4.8 requests for information per employee per year
  • For companies without Employee Self Service, HR professionals spent an average of 12 minutes per request providing information to employees. That comes to almost an hour (57.6 minutes) per employee per year
  • For a 100 employee company that’s 100-hours per year HR spends providing information the employee can obtain from Employee Self Service
  • The average employee saves 15 minutes per month by using Employee Self Service
  • The average Supervisor saves 3 hours per employee per year due to Employee Self Service

Employee Self Service (ESS) reduces the cost of managing your workforce and enables your Human Resources, Payroll Managers and Supervisors to focus on more strategic activities.

Employee Self Service provides your employees with convenient, secure access to their attendance and benefit information. Your employees can punch or enter hours worked, transfer to different departments/jobs, access their schedule, benefit, and time card information in addition to requesting time off (automated Leave Requests).

ESS is flexible and can easily be configured to meet your needs. You determine the functions employees can perform, the information employees can see, and how they enter hours.

Put key information in the hands of today’s mobile workforce. Employee Self Service can be used wherever employees have access to the internet‐ at home, at branch offices, on the road‐ through a company‐specific URL. Employees use ESS from their computer’s browser or a conveniently located employee kiosk. Security is provided by individual PINs that allow employees access to their own information.

An Employee Self Service kiosk, because it is employee facing, is a relatively low cost way for a company to be attentive to its employees. It is well known that morale improves when employees know that their employer is being attentive to their needs such as safety, career advancement and work-life preferences. Employee Self Service kiosks enable an employee to independently perform important tasks that affect their own lives. Employees can request vacation, review benefit balances, verify future schedules and view their time card in real time..

Leave Management automates employee time off requests, eliminating the paperwork while improving the communication of essential information to both the manager and the employee. Enhanced communication means improved employee relations.

Essential for Managers- Leave Management helps to maintain coverage and ensure productivity while honoring employee leave requests. Supervisors can easily compare same‐day requests, analyze departmental schedules and coverage, and assess pending and scheduled leave for the employee. The leave approval view makes it easy

Easy for Employees- Employee Self Service makes it easy for employees to check their benefit balances and sees if co‐workers are already taking time off.




5. Deployment of Attendance Enterprise/Attendance on Demand:

Our Attendance Enterprise/Attendance on Demand systems provide the highest level of integration, automation, ease of use, flexibility, and reporting power – at minimal risk – all from a trusted provider. IntegriTime employs a committed group of long-term, domain expert, and highly credentialed employees possessing a high level of Time & Labor Management- specific implementation and system support expertise. Our experienced team places tremendous value on a true understanding of our client’s requirements.

IntegriTime’s deployment team of experienced systems integrators manages the entire portion of the implementation including interface specification, programming and delivery. We conduct an extensive payroll review and pay meticulous detail to these requirements; working hard and ensuring the systems are implemented and integrated on time and on budget.

Integration boosts your return on investment. IntegriTime makes integration a priority instead of an afterthought. It doesn’t take too many disconnected applications to feel the pain of productivity drains, errors, and a lack of solid data to support decision-making. IntegriTime will integrate your Time & Labor information with your other business applications to improve the return on the investment you’ve already made in capturing employee data. Whether you’re leveraging your HR, payroll, ERP, or other back office applications, it’s easy to share data between Attendance Enterprise/Attendance on Demand and other applications.

Businesses that integrate time and attendance with other key applications not only have access to better metrics for better decision making, but enjoy superior overall performance when compared to their peers. Clearly optimal workforce management makes a difference. Expand the value of your workforce management data by making it accessible to other applications in the formats they require- additionally keep your Attendance Enterprise/Attendance on Demand solutions synchronized with your other business systems.

Integration adds up to improved productivity, time savings, reduced errors, and decision-making benefits.

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Phone: 1-800-524-2294

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IntegriTime Solutions, Inc.
24520 McBean Parkway #4
Valencia, CA 91355

Phone: 1 (800) 524-2294
Fax: 1 (818) 332-7959