Why Manual Timesheets Still Hurt the Construction Industry

Similar to other industries, construction is rapidly changing due to the introduction of new, modern software and hardware. Some of these solutions have quickly become vital for compliance, worker safety, administration, and finances. Among other things, the way we track workers’ hours has undergone rudimentary changes, switching from basic paper sheets to advanced construction time tracking software.

Truth be told, this upgrade was a long time coming. The old pen and paper system felt obsolete for a while now, as it relied on employees’ honesty, meticulous tracking, and coordination. Perhaps the worst thing about manual timesheets is that they carry numerous obvious and hidden costs for companies. 

Buddy punching and payroll mistakes would cost companies thousands of dollars each month, while managers also had to worry about compliance risks. Nevertheless, construction businesses stuck with it for decades as paper tracking gave them a lot of flexibility. Managers could input comments about processes, employees, and just about anything else that happens in the field. 

The Main Issues With Manual Timesheets

The one thing that old construction experts got right is the fact that payrolls should be simple. Your crews should clock in and out every day, without you having to monitor their every breath. Furthermore, you should also find ways to streamline payments, as you don’t want to worry about delayed obligations.

Unfortunately, due to inherent human errors and misuse, manual time tracking became a plague for many businesses. Here are just a few issues that brands have had to contend with over the years:

One of the biggest issues with manual sheets occurred when foremen sent their documents to the back office. The company’s financial department had to go through all this paperwork, often written by several people, and interpret different handwriting. Sometimes, the accountants had no clue what a person wanted to say, so they had to call them up and ask for clarification.

Purposeful or unforced errors were very common, and they would often go against the company’s budget. Even worse, managers in the field were sometimes in cahoots with the workers, in an attempt to squeeze as much money for themselves. If we also consider missing data and a few other issues, it was clear as day that paper sheets could no longer serve their purpose. 

Although buddy-punching is often mentioned as a problem common in the construction business, it also occurred in many other industries. The issue is prevalent in companies with numerous employees, where it’s hard to track when someone comes and leaves work. 

Buddy-punching occurs when a worker covers for their colleague by putting their name and signature on a sheet. This would effectively allow a person to leave work early, costing the company potential productivity. When it happened too often, it would affect the entire business as the organization couldn’t hit its marks.

Besides the fact that the company might overpay its workers, it also has to monitor and fix potential errors continuously. Occasionally, the audit might force your accounting to stay at work for a while longer, leading to additional expenses. Some of the mistakes could be so grievous, potentially resulting in legal disputes for the business.

Even the most meticulous businesses will occasionally make booking errors. For example, some of your documents might be lost when transferring offices or due to natural disasters. The issue might also occur due to the simple negligence of your accounting team. 

According to applicable laws, each construction business must keep its financial records for a set number of years. While the regulation might vary from state to state, the basic premise remains. 

The biggest issues with paper sheets are that they're so easy to damage or misplace. Replacing the missing documents is almost impossible, often resulting in the company getting audited by the local authorities. OSHA is in charge of the application, ensuring that each business is responsible toward their employees but also society as a whole.

Although employees can steal time, the same can be said for foremen. Due to errors, managers might pay their crews less than they deserve, leading to prolonged disputes between the two sides. Calculation errors also affect breaks, vacations, and overtime, all of which can affect the relationship between the two sides.

While it’s much better for workers to get shortchanged than the company, it doesn’t change the fact that this will result in accounting errors. Poor documentation will cause frustration among your staff, often leading to low employee retention. 

How Digital Solutions Help?

With modern software and hardware, you can avoid most of these issues. For example, you can use a static time clock for punching in and out. Alternatively, your company can opt for a smartphone application that will track each person in the field.

By implementing these solutions into your workflow, you can enjoy the following benefits:

• Accuracy: Unlike manual timesheets, which are riddled with human errors, you can enjoy digital solutions that precisely measure each worker’s participation.

• Data Integrity: Not only is the information correct, but it becomes standardized as soon as it enters the system. You no longer have to worry about different data entries from different construction sites. 

• Automation: The entire process is automated from data collection to calculating payrolls. Time tracking software for construction allows your accountants to take a day off, as it determines how much the company owes its crews.

• Implementation: You can implement these solutions seamlessly into your workflows, as long as everyone in the field has a smartphone.  

The best thing about these products is that they completely remove the human factor from the equation. 

Last Thoughts 

While introducing the new technology presumes an initial investment, it will pay off in the long run. Besides saving you money on time theft, you’ll also avoid massive fines caused by non-compliance.