What’s In Your Pocket?

Everyone should have a Swiss Army knife is his pocket.  With this one tool a person can tighten a screw, open a soda bottle, trim nose hairs, saw a small branch, cure the common cold, and various other useful functions.  Chances are that most people are packing another powerful multipurpose tool in their pockets as well…the phone.

Phones can save small businesses thousands of dollars each year in their largest   expense…payroll.  Employees who work at remote locations generally don’t have actual time clocks to punch, so their employers must rely on the honor system and handwritten timecards.  Utilizing phones as a method for remote employees to punch in and out of jobs through a telephone timekeeping system captures accurate time that could yield a 2-6% payroll savings.  

What more can a phone do for a small business other than save hundreds, if not thousands of dollars in payroll?  With a timekeeping system like Chronotek:

• Alerts can be sent to a supervisor’s cell phone as a text message or email when employees “no-show” to scheduled jobs. This feature alone can save a company a contract by making sure the job is covered.
• Supervisors with smartphones can use our web-based mobile site to view schedules, no-shows, late employees, employee’s status, the call log and an over 40 hours      report.  This is a great tool for busy supervisors on the go.  Catch overtime before it happens!
• Our new web clock-ins (an enhancement to the mobile site) allows supervisors to use the web to clock-in groups of employees, which saves time and money.
• The location of clock-ins/outs by a cell phone or smartphone web browser can be tracked by our GPS location tracking feature.

The greatest reason that any small business should consider using the phone as a strategic application is that almost every building has one; and every person has access to one. The phone replaces the expensive hardware that a business would need to purchase to implement traditional timekeeping methods.  Why carry around a set of Ginsu knives when one sharp pocket knife will do?      

The phone may never be able to peel an apple, but it is one tool that every small business with remote employees should have in their pocket.

Automatic Lunch Deductions Can Be Unhealthy

Charles de Montesquieu, a French social commentator and political thinker during the 1700’s said, “Lunch kills half of Paris, supper the other half.”  If small businesses aren’t careful, lunch can kill them as well.

We have received many calls recently asking if our system allows for an automatic lunch deduction. This topic circles around occasionally.  The answer is still no…and while avoiding expensive litigation is a great reason NOT to begin this practice, another should be considered. It is our raison d’etre…capturing accurate time.

A company may offer an automatic 30-minute lunch deduction; however if it required employees to clock-in/out for lunch, it may discover that employees are taking more than 30 minutes a day.  That would accrue several minutes a day for each employee working 5 days a week, 20 + days a month.  An employee who makes $7.50 an hour and is overpaid 5 minutes a day would receive over $160 annually in unearned income.  Make it $200 after payroll taxes and FICA, and then multiply that figure by the number of employees on payroll.

Another consideration is not just the unearned, undeserved money that is paid to employees who abuse lunch, but it’s the unmerited time that accrues towards their weekly timecard. According to the guidelines under the new healthcare law that goes into effect January 2014, an employee who averages 30 hours a week (or 120 hours a month) is fulltime equivalent (FTE). If a company has 50 employees or more then it must provide affordable health insurance for these FTE employees or pay a fine.

Unlike any other period, small businesses must diligently pursue accurate time keeping. Allowing unearned time to accrue on timecards for part-time employees can be an expensive, yet a very avoidable threat to a business. We understand small businesses’ need to comply with the law’s requirements for lunch time and breaks, but a better way exists than doing an automatic lunch deduction. Two calls a day (a call out for lunch and then back in from lunch) is only 25 cents a day (or less) per employee. A quarter is a great investment to ensure legal compliance while also strictly monitoring time.

Enjoy your lunch. Don’t let it kill your business.

Minding Your Minutes

An old adage says, “mind your pennies and your dollars will watch themselves”.  The same is true when you mind your time, especially when time equals money as it does for small businesses.

We had the opportunity recently to speak with a gentleman interested in our services. He ran a pricing estimate on his 14 employees to clock-in/out each day, 5 days a week.  At almost $92 a month for our telephone timekeeping system, he didn’t think that he lost that much time in dollars each month.  It’s a valid concern.  Small businesses must weigh the cost/benefit of every dollar spent.

We felt called to task and decided to quickly run our own estimates.  The assumption behind capturing accurate time with a telephony system is that companies overpay their employees due to the inefficiencies of handwritten timecards.  If a janitorial company pays $7.50 an hour and on average loses 3 minutes a day to each of its 14 employees, that results in $114 in overpaid wages each month. Factor in higher wages such as the proposed hike in the minimum wage  to $9 an hour and more than 3 lost minutes each day, the wasted dollars gush out like a busted dam.

Another interesting article states that companies lose 10 minutes a day to employee theft.  In our example above, that’s $375 a month in overpaid wages that can be prevented by a $92 a month investment.  Most everyone would invest $92 to receive back 4 times that amount.

It is a shock to the system to learn how quickly lost minutes turn into serious dollars.  Wouldn’t it be great to have those dollars back? It would be a beautiful thing.

New Numbers for Small Businesses

The numbers are not lining up in the favor of small businesses. 9, 30, 50, 120 are all digits that may start putting a stranglehold on small business in 2014. We want to review what these numbers mean to your small business and how their death grip can be relaxed.

Times are already hard for small businesses and 2014 looms ahead as getting even tougher. The new healthcare law, the Patient Protection and Affordable Care Act (PPACA), commonly called Obamacare, goes into effect and the Democratic Party is now pushing for a mandated increase of the minimum wage.

PPACA requires a company that employs at least 50 people for 120 days or more a year to provide affordable health insurance for those employees who work on average 30 hours a week (or 120 hours per month). “Affordable” is defined as less than 9.5% of the employee’s family income.  Employers “would determine each employee’s full-time status by looking back at a defined period of not less than three but not more than 12 consecutive calendar months, as chosen by the employer (the measurement period), to determine whether during the measurement period the employee averaged at least 30 hours of service per week.” Read more. If an employee qualifies based on this measurement period, then the employer must provide health insurance for this employee for a minimum of 6 months, but no shorter than the look back period. Failure to provide affordable health insurance under these guidelines will result in a $2000 fine per qualified employee (after the first 30). In other words, the first 30 employees in a 50 employee company would be exempt and the fine assessed against 20 (20 employees x $2000 =$40,000 fine). This fine is prorated on an annual basis by each month that the employee is not covered. A great site with Q & A is located here.

What should a small business do now? Keep in mind that this new law goes into effect on January 1, 2014, so the “look-back” period will begin on October 1, 2013. Some companies near the 50 employee threshold are trimming back on staff (which isn’t good for growth). The difference between 49 and 50 employees is more than one paycheck. It’s the cost of health coverage for 50 employees or a $40,000 fine. Many companies are cutting hours, while others are analyzing the costs of paying the fine instead of providing the insurance.

The other emerging strain on small business is the potential increase of the minimum wage from $7.25 to $9.00 an hour.  This is a 25% increase that some business owners believe will transcend beyond just their minimum wage employees. Their more experienced hourly employees who are currently paid in the $9.00 an hour range will demand a raise.

What options does a small business have other than laying off employees, cutting hours and choosing to pay a fine? An alternative is to invest in a system that can strictly and diligently monitor the time of variable hour remote employees. By tracking accurate time, companies can cut the waste caused by handwritten timecards and keep weekly hours down.

The result could be enough savings to cover what the government is trying to squeeze out of you.

 

Solid Investment Strategies Necessary for Business

It’s scientifically proven that if you put $100 in a Mason jar, bury it 2 feet deep in your backyard and dig it up a year later, the jar will still have exactly $100.  A bank savings account will yield roughly the same return these days.  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?

Most small business owners are too busy working their business to become experts at different types of investment strategies.  In today’s economy, it’s likely that a small business owner has all her net worth tied to the business operations. If that is the case then it’s critical to know how to minimize costs, maximize savings, and get the most out of every dollar spent.  One way to save is by utilizing all available tax deductions.  This article at MSN.com outlines several often overlooked tax deductions for small businesses.  Another tactic is to strategically invest in marketing, technology, training, quality vendors and other ideas presented in an article by Entrepreneur.com.  These investments can yield higher visibility, more efficient operations, better customer service and increased profits.

For many service-oriented businesses, the single highest capital outlay is spent on payroll, often up to 80% of total operation costs.  Salaries can be negotiated, but they are a constant.  The wages for hourly employees are much harder to predict and control, especially if these are remote employees without direct supervision.  Hours fluctuate and overtime can accrue.  2012 saw a 32% increase over 2008 in employees’ lawsuits alleging that they were owed overtime.  The best way to prevent these claims is to diligently track, manage and control the hours of employees.  The worst way to track employee time is by handwritten timecards (because they are dependent upon the honor system). These handwritten timecards must be collected and manually calculated and processed.

A more efficient method is the use of 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.  In a study by the American Payroll Association, it was estimated that a telephone timekeeping system can save a small business between 2-6% on payroll expenses. A 4% savings means that for every $1.25 invested in a telephone timekeeping system could yield $7 in return. An illustration of these savings is found here.

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.  For proven results that yield a direct return on your investment, the solution is quite simple; a telephone timekeeping system.

Cloud Computing. No Spacesuit Required.

Ten years ago “moving to the cloud” would have meant strapping on Mr. Jetson’s spacesuit and attempting to relocate.  But today that phrase is as relevant as “tweet”, “unfriend” and “wi-fi”.  Most people have an abstract idea of what it means. Don’t worry, this post will not dive very deep into the technical aspects of cloud computing, but let’s begin with a basic definition. Wikipedia defines cloud computing as, “the use of computing resources (hardware and software) that are delivered as a service over a network (typically the Internet).  Cloud computing entrusts remote services with a user’s data, software and computation.” 

With that groundwork laid, what does cloud computing mean to your business?

At a very basic level, the cloud can provide “off-site” file backup and storage. The providers’ off-site servers are backed up, duplicated and replicated for security and redundancy.  With unique log-in credentials, a customer can access his files remotely across the internet by PC or a smartphone app.  The cloud data backup plan is a great idea because PC hard drives fail and external hard drives, flash drives and discs are not 100% reliable.  If your data is important to you, then it is important to use a combination of the above storage methods as a solid, comprehensive plan.

Another advantage that cloud computing can offer businesses relates to software and services or “software as a service”. Traditionally to use a software program such as QuickBooks, a customer would buy the software package on a CD, install it on a PC and only have access to the program at that one computer.  Cloud computing allows a business to use software programs online, without having to install a program on a local computer and access is available from any PC with internet access (or a smartphone app).

Small businesses with remote employees can also take advantage of this “move to the cloud”.  Tracking the employees’ time can be cumbersome, costly, and time consuming, while affecting the biggest line item on a budget…payroll. Small businesses can purchase time tracking software and hardware, but there are many drawbacks to this strategy.  The software is generally expensive, needs regular updates (often at an expense) and is chained to one computer.  The hardware can be cost-prohibitive for smaller companies and will eventually fail or become obsolete.  The process of repairing or replacing the hardware leads to more costs and system downtime, while a reputable cloud, or web-based timekeeping company, maintains full operation 99.99% of the time.

An article in Infoworld.com illustrates why businesses that track employee time with handwritten timecards should consider a cloud or web-based timekeeping system.  The author states, “Cloud computing comes into focus only when you think about what IT (Information Technology) always needs: a way to increase capacity or add capabilities on the fly without investing in new infrastructure, training new personnel, or licensing new software… it means no upfront investment in servers or software licensing.”  These factors are huge along with the benefits of accurate timekeeping and automatically calculated hours!

Is your company ready to move to the cloud? 

The Universal Appliance

The human population is approaching 7 billion.  Without conducting any scientific research, we can safely assume that nearly 100% of this population has hearts…literally if not metaphorically.  Another global commonality that is ever increasing is the possession of (or access) to a telephone.  A 2010 report cited that over 1 billion people worldwide have a fixed telephone line.  Another study by the International Telecommunication Union (ITU) informs that at the end of 2011 there were almost 6 billion cell phone subscriptions.

This vast penetration of phone technology has led some to label telephones the “universal appliance”.  The simplicity in using a phone cuts across cultures, disabilities, race, gender, nationalities, pedigrees and ages.  The human heart doesn’t come with an owner’s manual and most people learned to use a phone without one.  Pick up the phone, dial the number and it just works.

While landline telephone use is expected to remain stable or decrease over the next few years, cell phone subscriptions are expected to reach 8 billion by the end of 2016 according to PortioResearch.  With a technology that is so widely used, why not harness its power for your business?  The rapid emergence of smartphones over the past few years is more great news for any business.  As of the 3rd quarter of 2012, Americans now use smartphones more than basic cell phones.  The percentage of smartphone users rose from 49% to 56% in 2012 per a Nielson’s study.  A key fact relevant to many small businesses is that a big chunk of their workforce owns a smartphone.  A study by Nielson’s revealed that 74% of 25-34 year olds own a smartphone, up from 59% in July 2011.

The question bears repeating…with a technology that is ubiquitous and simple to use in our society, shouldn’t all small businesses find a way to take advantage of it?  For instance, an 11 second call from a landline, basic cell phone or smartphone can save a small business with remote employees 2-6% on payroll. This savings is just the beginning.  Telephones can be a tool within an employee management system that can create the most productive and efficient workforce possible.  In fact, we would argue that no other appliance, especially with the prevalence of smartphones, could rival its uses either.  We will discuss these ideas in our next post.  Stay tuned.

How vital is the phone to people these days?  Chances are if you tried to take someone’s phone away, it would have to be surgically removed.

Great Ideas from Our Great Customers

For over 18 years we have listened to our customers and their valuable feedback has led to great innovations in our system. The “out in the field” experience is a prized laboratory for our technical department. Sometimes our customers even tell us of ways they are using our system that causes us to pause and say, “Ahhh, now that is smart!”  We thought we would pass a couple of these ingenious ideas along.

While showing a new customer how to set up job schedules (in order to receive no-show alerts), his interest was triggered with our “Late Check-Out” alerts.

One of his employees was accidentally locked in a bank vault while cleaning one night. The poor guy was MIA until the next morning when the bank manager opened the vault!  If this customer had been using our system, then the late check-out alert would have prompted him to follow up with the employee. He was also excited that this feature could alert him in the event an employee has an accident and can’t clock out. What a great use of the system!

Some companies only want to track employee attendance (and not hours worked).  Chronotek has a feature called “Auto Safeguard for Missed Clock-Outs” whereby a time card is automatically closed after a specific timeframe. This protects (and resets) the employee’s time card in case they forget to clock-out.  This feature can be adapted to meet specific needs, just like the story below.

A customer hosted a special event at a remote location and her primary concern was to know that all her employees showed up. She only needed Chronotek for time and attendance, so she set the Auto Safeguard for Missed Clock-Outs to “0” hours for all of her employees.  When the employees clocked-in, the system automatically closed the time cards (which prevented any time accrual).  She also created job schedules for this event so she would receive an alert if an employee did not arrive.  With these combined features, she was confident that her staff showed up…and received alerts if they didn’t.

There you have it; great ideas straight from the field. If you have any, please let us know. We love to be “wowed”!  Click here if you would like to see how other companies are using our system.

Alert! Have a Peaceful Thanksgiving

The Chronotek Team would like to thank you for your loyalty through the years. We hope that your holidays are a peaceful time of reflection and relaxation with your family and loved ones. To help this peace become a reality, we are offering a couple of suggestions.

Alerts can torpedo all chances of peace and quiet!  So, for companies who have alerts set for employees who will not be working on the holiday, we have a solution.  You can easily turn off all alerts with one click of your mouse.  See page 48 of our new online System Guide located under the References menu tab to learn how to temporarily disable all alerts.

On the holiday, simply go to My Account > Company Setup > and uncheck the Enable alerts box.  Your family will thank us for this tip…just don’t forget to turn the alerts back on after the holiday!

Maybe your industry doesn’t afford a day off for your employees; yet you would like confidence over the holiday that all of your jobs are covered. We offer two types of alerts that can help.  The first alert lets you know when an employee checks in and out. The second (and most widely used alert) informs you when an employee does not show up to a job by a specified time.  By creating schedules with alerts for your employees over the holiday, you can rest assured that all jobs are covered and only be notified only if an employee is late.  See page 18 of our online System Guide for the alert sections.

We hope the alert settings help with a peaceful holiday. We are thankful for God’s grace in allowing us to serve businesses like yours for the past 18 years.  Have a blessed and joyous day of Thanksgiving!

Would You Trade a Quarter if I Gave You a Dollar?

If someone offered to trade you a dollar for a quarter, would you accept the trade? You would probably back up a truck to haul away your good fortune. For businesses using hand-written time cards to track their employees’ time, Chronotek has such a deal.  Our industry leading telephone timekeeping system, with over 15 years of proven excellence, can save these businesses between 2-6% on their largest capital outlay, payroll (savings averages according to the American Payroll Association).

Times are tight and you may think that you can’t afford to implement a telephone timekeeping system. Our clients have shifted that thinking – and they are getting ahead of their competition!  Our system is not a cost; it is an investment – with benefits.  We don’t pay you to use Chronotek, but it seems that way.  The return on investment is only part of the savings. When you manage your employees more effectively you give better service to your customer.  Chronotek provides a good return on your investment and a comprehensive employee management tool.

The following chart illustrates how Chronotek saves people money by capturing accurate time…  no padding on Chronotek time cards.   We estimated 20 employees working a 6 hour, 5 day work week, with 2 clock in/outs a day.  Employees would make 870 calls a month costing $129, with a possible savings of $707 a month (4% of payroll less cost of system). 

Check out the pricing calculator for your estimated savings.

An investment with benefits…  Save time by not having to collect and process manual time cards…  Run payroll reports with accurate time cards…  Receive alerts when employees do not show for jobs…  Prevent buddy punching with Random Voice Verification…  Send voice messages your employees must listen to.  

Put another way, approximately every $1.25 invested in Chronotek could yield a return of $7.  Can you afford to wait any longer?   Save money, work smarter and stay ahead of your competition by implementing proven technology.  Get your truck and we will load up your savings!