What are the most common timekeeping challenges in HR Operations?

Timekeeping is a vital function of HR operations, as it affects payroll, compliance, productivity, and employee engagement. However, timekeeping also presents many challenges for HR professionals, especially in the era of remote work, flexible schedules, and complex regulations. In this article, we will explore some of the most common timekeeping challenges in HR operations and how to overcome them.

1 Accuracy and reliability

One of the main timekeeping challenges is ensuring the accuracy and reliability of the data collected from employees. Inaccurate or unreliable time records can lead to errors in payroll, tax reporting, overtime calculations, and labor law compliance. Moreover, inaccurate or unreliable time records can damage the trust and morale of employees, who may feel cheated, underpaid, or overworked. To avoid these problems, HR professionals need to implement clear and consistent timekeeping policies, train employees on how to use the time tracking system, and audit the time records regularly for any discrepancies or anomalies.

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2 Compliance and regulations

Another timekeeping challenge is complying with the various laws and regulations that govern wage and hour issues, such as the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and state and local ordinances. These laws and regulations set the standards for minimum wage, overtime pay, breaks, sick leave, and other aspects of employee compensation and benefits. HR professionals need to be aware of the relevant laws and regulations that apply to their organization and ensure that their timekeeping policies and practices comply with them. Failure to do so can result in fines, penalties, lawsuits, and reputational damage.

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Max van der Klis-Busink

#PassionForPayroll
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Time tracking in Europe is often governed by the rules in the Collective Labour Agreements (CLA), possibly topped up with company policies. Make sure you select a platform where these often complex requirements can be met, while also enhancing the user experience, adoption and ability to interface to your payrolls. Key factors are the ability to automatically generate time codes baed on schedules and actuals, including any premiums. You can decide to also hold the hourly rates in the timekeeping platform to put values to the units, or decide to calculate this in payroll. This is a key decision and the requirements must be reviewed holistically, as timekeeping and payroll play in synch here.

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3 Flexibility and diversity

A third timekeeping challenge is adapting to the changing needs and preferences of the workforce, which is becoming more diverse, flexible, and remote. Employees today expect more autonomy, flexibility, and work-life balance, which may require different timekeeping arrangements, such as flexible hours, compressed workweeks, or hybrid models. HR professionals need to balance the needs and expectations of employees with the goals and objectives of the organization, and create timekeeping policies and practices that support both. This may involve using cloud-based or mobile time tracking systems, allowing employees to self-report their hours, or setting performance-based metrics instead of time-based ones.

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4 Integration and automation

A fourth timekeeping challenge is integrating and automating the time tracking system with other HR systems, such as payroll, benefits, performance management, and analytics. Integrating and automating the time tracking system can improve the efficiency, accuracy, and consistency of the HR operations, as well as provide valuable insights into the workforce trends, patterns, and issues. HR professionals need to evaluate the compatibility and functionality of the time tracking system with other HR systems, and leverage the data and reports generated by the system to inform their decisions and actions.

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5 Engagement and communication

A fifth timekeeping challenge is engaging and communicating with employees about the importance and benefits of timekeeping. Timekeeping can sometimes be perceived as a tedious, boring, or intrusive task by employees, who may not understand why they need to track their time or how it affects their pay, performance, or career. HR professionals need to communicate the purpose and value of timekeeping to employees, and provide feedback and recognition for their compliance and contribution. HR professionals also need to solicit feedback and suggestions from employees on how to improve the timekeeping system and process, and address any concerns or issues they may have.

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Max van der Klis-Busink

#PassionForPayroll
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When I implemented a timekeeping system (at the time, this was Kronos) we enhanced adoption to very targeted videos - maximum 10 minutes. We used persona's (e.g. Retail Operations Managers, Store Managers, Sales Assistants) and showed them how to use the platform. Getting an understanding of how to use the platform and be on top of timecard approvals, ensures a smooth flow to payroll ensuring accurate and timely pay.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the most common timekeeping challenges in HR Operations?

1

2

3

4

5

6

1 Accuracy and reliability

2 Compliance and regulations

3 Flexibility and diversity

4 Integration and automation

5 Engagement and communication

6 Here’s what else to consider

HR Operations

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What are the most common timekeeping challenges in HR Operations?

1

2

3

4

5

6

1 Accuracy and reliability

2 Compliance and regulations

3 Flexibility and diversity

4 Integration and automation

5 Engagement and communication

6 Here’s what else to consider

HR Operations

Rate this article

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