Time rounding is supposed to make handling payroll easier, but what other effects does it have on a company?

Inaccuracies

From and administrative standpoint time rounding makes sense, but shaving time down here and there can lead to small anomalies that eventually build into a larger problem. Once they start to add up it’s hard to control and keep records error-free, leading to inaccurate data on producvtivity and overall business performance. Making it difficult for leadership to plan strategically and course correct in a timely manner. 

Overpaying or underpaying employees

Adjusting work hours to save time and money is a solution that leads to an imbalance between employees and employers. Employers are most likely miscalculating wages and overpaying or underpaying workers. Leading to both sides potentially losing money.  

Employer-Employee Friction 

Time rounding is risky, companies need to ensure that there is a neutral rounding policy in place and it doesn’t short employees of wages earned. It’s also vital for companies to make all time-rounding policies transparent and easily accessible so their workforce is educated. If employees aren’t clear on the policies or feel they are being “shorted” their grievances can build up over time and a dissatisfied worker may take legal action. 

Avoid lost wages, data discrepancies and disgruntled employees with one simple solution: WorkJam. 

Our super-app integrates with your Workforce Management systems and allows companies to digitize frontline time in clocks allowing leadership to have real-time knowledge of factory productivity and cuts pesky wait times for the workforce. 

Additionally, WorkJam can simplify scheduling with a complete set of self-service functions featuring schedule view, time-off requests, time card management, shift swapping and voluntary time off providing workers with a total frontline solution. 

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