In 2013, researchers with Gallup examined the state of the U.S. workforce and uncovered a shocking statistic that should disturb any business owner or office manager: The researchers found that unhappy employees cost the economy between $450 billion and $550 billion in wasted time and lost productivity each year. Yet, even though disengaged employees can have a depressive effect on your business, so many managers feel that they don’t have enough time to work on cultural initiatives. Fortunately, there is a simple way to save time and improve employee satisfaction simultaneously: Use workforce management tools.
While the term “workforce management” is often thrown around in the corporate setting, it’s important to understand what it entails and how proper workforce management software can provide benefits to employees that help improve retention and overall business operations. Here are just a few benefits of investing in workforce management software.
1. Improved Efficiency
According to a Deloitte Payroll Operations survey, in North America, 56 percent of respondents outsource their payroll technology hosting, maintenance, and support. When performed in-house, these services are highly specialized and typically require several full-time employees.
For smaller businesses or startups, this isn't always feasible. In these cases, outsourcing essential components of workforce management ensures all employees receive their benefits in a timely and accurate manner.
No longer will employees grow frustrated at missing or incorrect paychecks or timeclock entries. Technology is a constant, and using it to your business's advantage ensures maximum efficiency without sacrificing a budget you just don't have.
2. Accurate Employee Classification
It may sound surprising, but there are a huge number of businesses that incorrectly classify their employees, risking serious fines and massive accounting delays. In fact, in Fiscal Year 2015, the U.S. Labor Department’s investigation of the misclassification of employees as independent contractors recovered more than $246 million in back wages for more than 240,000 workers.
From an employer standpoint, it’s much better to avoid this critical mistake in the first place than to risk having to give massive payouts you weren’t expecting. But more importantly, your employees help your business thrive, and it’s unethical to pay them less than they deserve, even if it is unintentional.
3. Enhance Employee Satisfaction
Finally, a well-maintained and organized workplace simply makes employees appreciate and value their jobs more. There’s no guesswork or uneasiness when it comes to paydays, vacation time, healthcare, or other benefits. Relying on workforce management software to keep all employee records consistent effectively eliminates the possibility of human error and shows your employees that you care as an employer.
Ultimately, understanding the benefits of workforce management software can help you decide whether or not this is a suitable path for your business. For more information about how to get started with a workforce management software program, contact Paymedia.