The importance of time and attendance monitoring for the small business owner

Article provided by Javier Loya, CEO of OTC Global Holdings. 

As the owner of a small business, profitability depends on the careful monitoring of the day-to-day operations of the organization. A part of this making sure that full use of your most valuable resource: employee time, is used wisely. In order for it to be used wisely it must also be measured.

Using automated time clocks and software will make sure that employee time is measured and tracked. The first result is that tardiness will reduce, with more employees arriving on time and leaving at the right time. An employee arriving half an hour late without penalty over the long term is a serious productivity hit. In addition it also affects the morale of those who do arrive on time and see no punishment for those who violate it.

Pair the automated time and attendance system with an automated payroll system and you have a cost effective method of accurately calculating wages. This will save you on both the cost of payroll preparation and unnecessary labor costs from miscalculated time sheets and under attendance.

The goal of having a time attendance system is twofold. Primarily it is to reduce the costs of labor by increasing efficiency and attendance. Secondly it is to free up the management from micromanaging the labor force to being able to focus on the larger more important need to grow the business.

Javier Loya grew up in El Paso, Texas and now lives in Houston, Texas with his wife and two daughters. He the founder and co-CEO of OTC Global Holdings, the largest independent OTC commodity brokerage in the world. He graduated from Columbia University in New York and is a minority owner of the Houston Texans football team.