How do you keep track of your employees? If you’re still using an outdated time clock, or worse, a ledger where you write in start and end times, you could be wasting valuable time and money.
Using an automated time clock solution is the most efficient way to stay on top of payroll, and the best way to avoid human errors and a loss in profits due to inefficiencies.
If you don’t already use a punch clock, here’s why it’s time you invest in one:
1. Increase your revenue by comparing sales vs labor
Your labor cost percentage is one of the most important restaurant metrics to keep track of on a daily basis. This is because labor is often the highest restaurant cost after rent (and sometimes it costs more than rent).
Limited-service, or fast-casual restaurants and cafes typically try to stay within the industry-average target of 25% to 30% for payroll costs. Not only do you need a system to quickly provide a report on your labor cost percentage, but you’ll also want to compare that to your monthly sales for better forecasting.
When your punch clock system is synced with your point of sale, it’s easy to create a Sales Vs. Labor report, enabling you to make better staffing decisions, and ultimately, increase your revenue by decreasing money lost to overstaffing.
2. Reduce managerial labor costs
Without a digital punch clock, some restaurateurs process payroll by manually collecting cards and entering data into a payroll system. We don’t have to mention that this takes a considerable amount of time. Many businesses end up hiring payroll managers to compile and process data from a few disparate systems. Digital punch clock solutions let you cut down on hours spend doing payroll to mere minutes.
3. Accurate payroll
It’s not unreasonable to assume your employees are sometimes being over or underpaid due to mistakes in time card tracking. You can also imagine the time spent correcting mistakes. Some human errors are inevitable, but restaurant managers should be on the lookout for any resource or system that can cut down on them. If you’re tracking employee schedules manually, the chance of human error is much higher than if the system is automated such as with a digital punch clock.
4. Save time on employee scheduling based on sales report
Imagine calculating your payroll vs sales report each month by hand or with multiple online spreadsheets. Not fun. Fortunately, there’s a faster way to quickly optimize staffing.
With punch clock software integrated into your POS, managing schedules, assigning specific tasks, and keeping track of shift swaps is quick and painless. All of your data is housed in one place which is crucial for understanding your business in real-time.
5. Employee peace of mind
Knowing that they’ve entered information into a digital system gives employees more reassurance than having to rely on a payroll manager to compile it all behind closed doors. Most punch clock software also lets employees access their information so they can personally keep track of payroll if they want to – enabling a sense of empowerment. For example, Koomi’s punch clock is integrated with 7shifts scheduling system so that employees can get receipt printed when they punch in/out, as well as be able to check their schedules remotely.
If you’re still using antiquated time tracking systems, there’s no time like the present to automate your process and save time and money. For Koomi users, if you haven’t already starting making use of our punch clock feature, now’s the time to start!