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Instead of spending valuable time manually punching in and out, consider using an employee time clock app to do it for you. This can save your company both time and money, which makes it a great idea that will benefit all involved! Here are five reasons why you should choose an employee time clock app over the old-fashioned way of clocking in and out.

Reduce administration costs

An employee time clock app isn’t just a convenient way to track employee hours—it can also help save your company money. While employees must clock in and out manually with traditional time clocks, they can use employee time clock apps to do so on their smartphones and other mobile devices, which reduces administration costs by eliminating man-hours spent logging time cards. A recent report suggests that implementing such a solution can reduce the cost per hour paid by 20 percent or more. No matter how diligent you are about keeping up with who clocked in when there are always going to be gaps between what is reported and what actually happened. With a time clock app, it’s easy for each employee to record his or her hours at any point during the day using a smartphone.

Improve employee productivity

More than just tracking hours, employee time clock apps can be used to improve employees’ productivity and help you manage your workforce more effectively. For example, by monitoring their workdays closely through punch-in and punch-out data, you can make sure they are spending enough time on tasks that need their attention. Additionally, hourly workers can use time clock apps to record start and stop times for each task or project; managers can then check these logs to see which projects require more attention or if a worker is struggling with a particular task.

Save money on payroll processing fees

One of the biggest—and most common—reasons companies choose to use time clock apps is to save money on payroll processing fees. A handful of payroll providers offer employees’ time-tracking ability as a part of their product, but doing so requires a per-employee fee that can add up quickly for employers with a larger workforce. With employee time clock apps, you only pay for what you need. This can be especially helpful for small businesses with fewer than 10 employees or seasonal staffers who don’t work full-time or year-round. In addition, when your company switches over to a payroll service, all workers will have to enter their hours manually into software, which takes valuable time away from HR and hiring managers.

Comply with pay regulations

A time clock app can help ensure that you’re meeting applicable wage and hour laws. The Fair Labor Standards Act (FLSA) establishes guidelines for overtime pay, minimum wage, and recordkeeping. In fact, if you have a company with employees who are at least 16 years old and who work more than 40 hours in a week—even as independent contractors—you must keep records of their time. There are also state regulations to comply with; while they may vary from place to place, many of them mirror federal FLSA requirements. Using time clock apps can help you stay in compliance with these standards by keeping accurate and up-to-date records on employee work hours.

Enhance employee satisfaction

Employees love apps that make their lives easier, but it’s even better when those apps improve employee satisfaction. In fact, a survey by Wrike revealed that 59% of employees are more productive with time-saving tech tools at their disposal. Another 54% believe digital collaboration boosts productivity and creativity among coworkers. And in addition to enhancing employee satisfaction and happiness? Time clock apps allow you to track employee hours from anywhere and cut down on payroll paperwork—which can save your company both time and money.