Small business has to think about every matter which affects the business and its productivity. There are several methods of payment followed in an organization to pay salary to the staff for their deliverables. May it be a piece-rate system, time wage system (hourly), monthly salary or sometimes project-wise.
It has been seen when the employees are asked to report the time taken to finish a specific task or a project the productivity automatically increases. However, the strategy does not hold good every time.
The most challenging downsides of the survey are the salaried staffs are not that productive as hourly paid employees. The reason being they know they will be paid the same irrespective of the number of deliverables or output they produce. That is the reason they are less bothered to put more effort into the project to increase productivity.
So what method is to be implemented to get most of it? The intention is to get maximum productivity while keeping the wage expenses at a minimum. A business owner has to find out the ways to keep the advantages and curb the disadvantages of salaried employees.
The remedies to the issue are many. You can introduce some incentive plans to induce salaried employees by offering them project-based incentives, cash bonuses, and implementing team-focused projects. Hence giving incentives is an extra cost for the business and it will end up costing you more in the long run. Another way is to consider implementing time tracking to measure the performance of salaried workers.
Time tracking systems has some more significance apart from the internal benefits as well. Like some task needs recording time, this is also needed to identify whether salaried employees cannot receive overtime. If a salaried staff is working over 40 hours per week then the employee is entitled to receive overtime pay as per the federal law.
Let’s discuss the Benefits of Time Tracking for Salaried Employees
A Time Tracker, for salaried employees, is like someone “looking over their shoulder.” You can make your employees more responsible for implementing the Time tracking system.
- Increasing Accountability
Usually, Salaried employees are not motivated to sit on the task whole the time. However, this Time tracker makes the employees forcibly spend their time on the project. The staff gets conscious of how long a project is taking. This, itself speeds the things up and they are less tempted to take breaks or use work time for personal reasons. Thus you can enhance the accountability of your staff by implementing the time tracking method.
- Measuring Costs and Revenue
Firms struggle to determine how much time a project takes without a meaningful way of tracking time. This can help the entrepreneur to measure accurately how long it is taking your team to complete a given assignment. Thus you can able to determine how much return you are gaining on the job and what should be the cost of production for it. Thus by comparing the revenue and cost, you will get a better picture of the circumstances which will help you in making informed business decisions.
- Assessing Capabilities
Tracking time also helps the business owner to assess the individual capabilities for a specific job. Every individual may not take the same time to finish the same task. It differs from person to person depending upon their individual skill and efficiency. Thus it is helpful for the management to plan how much human resources they need for a particular project when they have accurate data.
No method of payment is good or bad. Rather it depends on the nature of your business and other internal and external aspects. Gather all the information that can decrease your operating costs, increase productivity and improve your bottom line. So it is advisable to identify your business process first and then select the suitable method of payment to be followed.
If you still want more information on choosing the right software, you are always welcome. We the Outsourced Bookkeeping services is your best business partner. We have expert professionals who can suggest you the best business policy and assist you with the best strategy to be followed.
Take your business to a higher level. Concentrate on implementing strategic plans and policies for the development of your business. Wash your hands off from the routine accounting and bookkeeping job. Delegate the tedious and time-consuming accounting task to us. We are there to help you out in your business accounting and bookkeeping services needs. Call us today. Our expert accounting personnel will feel the delight to entertain you.
**************
