timesheet processing

7 Errors You Can Make During Timesheet Processing

One of the major challenges business owners faces in timesheet processing is errors! When the errors are repeated continuously over time, these small intractable errors gradually impact your ability to process information accurately. If you have any exposure to timesheet processing, this list of errors may prove a significant asset for tracking your processes. 

This article provides an overview of the various mistakes and errors made while entering, editing and sorting data on a timesheet.

So, let’s get started and explore these errors in detail. 

1. Incorrect Rates 

The payroll mistakes are so common that even a little overview can trace the error. Often, employees are overpaid or underpaid than the expected salary due to underestimated employee pay rates. A similar blunder often happens with the overtime rates of the employees. The overtime per hour is charged on rates such as double or one-half the employees’ regular rates. So, even a slight error of 0.1 can lead to significant drift in the expected salary. 

2. Incorrect AWR dates 

The Agency Workers Regulations (AWR) dates can be essential for temporary agency workers for all entitlements under AWR after the qualifying period. The manual errors in setting up this date correctly or any errors in absence dates can affect the 12 week qualifying period considerably delaying the basic pays, bonus, allowance, etc. An automated system like Bill My Task can help reduce these errors for the employees’ uninterrupted duration and payment.

3. Pension Opt-in and Opt-out errors

Another Common manual mistake by staff is during pension calculations. Staff happen to enter incorrect data or miss out important data of opt-in and opt-out dates of pensioners. If the staff misses out the employee’s important emails or messages regarding the pensioners’ opt-out date. This mistake can result in extra deductions from the employee salary until recognized otherwise. This simple error can call for additional efforts in reverting the deducted money and further work to make the employee correct pension contribution.

4. Charged to wrong clients 

The temp staffing employees are continuously on a roll from one client to another. Any staffing errors in switching the employee sheet to the next client can reflect a hefty amount in the client payment amount. Employees enter the total number of hours they work before submitting it for approval at the end of each pay period. And hasty manual errors can affect the company image as a reliable partner at large. Hence, maintain automated software for client invoice calculation to avoid any mistakes with the client’s payments.

5. Missing Holiday Pay 

Every timesheet processing needs to consider only the Administrative tasks or hours for the payment hours. For example, the employee holiday period, training hours and administrative projects might or might not be part of the system. However, this information needs to be considered in the monthly timesheet calculation as per the employer’s rules. Custom fields allow you to enter day/time for specific tasks, projects and activities in a timesheet, but this is most often subtly ignored, and forwarded to payroll processing resulting in missing holiday pays. 

6. Time-in And Time-out Are Miscalculated 

Maintaining accuracy in clocking in and out data of workdays is crucial to the pockets of your company. If the calculations are incorrect, the company is paying more or less than how much it needs to pay its employees. When the total daily working hours are calculated without including breaks, the total number of hours is drastically higher. Due to the inconsideration of break timing data, the company might end up paying way more to its employees than expected salaries. 

7. Missing Special Rates 

If any organization has additional overtime rates for special holidays, many mistakes can happen. In manual timesheet processing, errors in the calculation are bad enough, but the worst case is not considering it at all. The timesheet processing staff must process all the employee payrolls at the month-end, including the applicable special rates. But the bulk processing of pay rates can lead to missing out on the additional special rates that reflect considerably in the employee’s salary slip.

As you see, there are numerous reasons why errors occur during timesheet processing. And the best way is to avoid making these mistakes in your company’s timesheets by automating your system with efficient softwares and performing regular audits whenever possible

Bill MyTask can help you manage your timesheet right from entry to approval and processing to invoice generation automatically. With this software, your employees can enter time from their Mobile App for immediate approvals and quick processing. Upgrade your business system with the latest technology to manage a flawless timesheet for your employees.

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10 KPIs for your Temporary Staffing Agency

Many factors affect your business’s success or failure. One critical factor is the hiring process, which is why there are several KPIs revolving around the employees of a temp staffing agency. 

Different temp staffing agencies may use different KPIs but there are some common to  everyone. The best way to keep your agency on the track to success is by achieving these different KPIs, but what are they?

This article will explore 10 KPIs that will help your business.

1. Cost per Hire 

Cost per hire is one of the most commonly used by hiring agencies that include the expenditure on the recruitment process, supporting equipment, travel, and administrative costs. When you look at the overall costs of hiring a temporary employee, you must also look at the hiring manager’s abilities as many hiring managers can be extremely good at marketing but fail to find the best talent.

2. Revenue per Employee 

The revenue per employee metric is a great way to keep your bottom line tight while not draining your organization’s cash reserves. Revenue per employee is a measure of the total annual revenue divided by the company’s current number of employees. This ratio is often used to compare the revenues with the competitors. By keeping an eye on these aspects, you will be able to maximize your profits. 

3. Average Hours Per Employee 

This is another important hiring metric to consider how much time your team spends interviewing every potential employee. If you are spending way more time hiring than the ideal process, you certainly need to implement a better hiring process to make the most out of your organization’s precious time. 

4. Employee Turnover Rate

When temporary staff are hired, they work on a contractual basis and get paid for their services only when hired. Hence, there are many risks associated with these employees as the possibility of them leaving a company within specific time results in high turnover. If your agency’s employee turnover rate is high, your staffing agency will have a bad reputation and huge impact of agencies finances.

5. Employee Demographic

You need to collect all the data from new employees working for your agency. You can also manage the potential candidate’s demographics to help you understand whether or not the candidate fits into your company’s culture and determine if that candidate has the qualities your business is looking for. This will enable you to analyze the location that supplies you with potential employees to fill the positions.

6. Cost per employee 

Another component that you can track is the cost per employee. If you’re a small staffing agency, then this ratio may not mean much to you. However, if you’re a large entity, then this metric can be significantly affected by your employees’ skill set. The more skilled your employees are, the more they are likely to charge you, which will create a pool of talent for your company’s growth in the long run.

7. Margins per Employee

The common profit model used by staffing agencies is Mark- up on hourly rate. Although the difference between Employee pay rate and billing rate is not direct to staffing companies. Agencies must factor in overhead cost directly associated with employee in pay structure. This approach is a pretty good alternative to bring in more returns and boost healthy working capital ratio. 

8. Back-office Costs per Employee 

Your back-office functions will include administrators, support staff, HR, IT, and accounting that supports your employees. This function is inevitable to run your business; however, they do not generate any revenue. Hence, you need to keep this ratio optimum to work efficiently. Data-driven staffing models and automation can save a significant cost on this metric. BillMyTask can provide you with an integrated Platform for back-office tasks such as CV collection and formatting, scheduling interviews with staff, and HR documentation.

9. Total Hours 

If you have employees who work on-site for your business, you need to track the amount of time they spend working. Use the average number of hours per week to determine your cost per employee. Do you have employees who work a minimum number of hours or overtime? Consider the average time they work per week and adjust your salaries to reflect this. Your cost per employee should be sensitive enough to provide an accurate picture of your expenses.

10. Average Days to Pay by Client 

Last but not least – this metric performs calculations on your client’s paid invoices to determine the average number of days for each client to pay invoices. 

  • Average days to pay per client = Sum of the paid days for all invoices / Total number of invoices paid. 

This metric gives you a brief idea of the setting up due to date for the invoices depending on the calculated average days to pay. BillMyTask generates and sends the client invoices automatically by processing the timesheets after getting approved by Xero