Limit Employee Hours

Three Benefits of Automating Limits on Employee Hours

Limit Employee Hours

In the course of doing business, employers face a broad range of costs. Some of which are predictable while others vary and remain unpredictable, exposing the employer to greater financial risk and reduced profitability. This is especially true when it comes to the cost of employee labor.

Because employee’s wages are among an employer’s greatest expenses, employers must implement practices to control costs and limit unexpected expenses, such as overtime. Planning staff coverage, however, is a highly dynamic and often complicated task without automated tools. Fortunately, with tools like advanced scheduling from 941 Timekeeping, employers can now do things like set automated limits on employee hours to simplify how these costs are controlled.

For example, let’s take a brief look at three benefits of simply setting auto-limits on employee hours.

  1. Minimizing Overtime Hours. Without question, paying time and a half for employee labor drives up costs fast, but overtime is often an essential part of an employer’s business. However, not managing overtime hours efficiently and not managing a formal, automated policy for distributing unassigned hours evenly to employees can be very costly. Often is the case that 20% of employees absorb the majority of extra hours or overtime opportunities due to a lack of tools for supervisors. With TimeSimplicity, these problems are fixed. Employers can easily set automated hour limits for individual employees, ensuring that overtime hours are minimized or that floating shifts are distributed to employees with hours to work before hitting overtime. This is especially important when a shift is dropped and the scrambling begins. With our simple “Best Fit Wizard” tool supervisors have a prioritized list of candidates to distribute those hours to.
  2. ACA – Preventing employees from creeping into full-time status. In environments where schedules are dynamic and change occurs frequently among employees, controlling and maintaining complete visibility of hours is essential. This can be especially true to ensure part-time employees are not exceeding their assigned hours on a regular basis. This may be to simply minimize costs or prevent an employee from creeping into full-time employment status and benefit eligibility based on the Affordable Care Act’s definition of full time as 30 hours per week or 130 per month. To avoid this potentially costly problem, simply set a weekly hour limit by employee. This will ensure notifications are distributed and that employees are not unintentionally taking on too many hours when unexpected changes in the schedule must occur.
  3. Limiting Costs Resulting from Trade Shifts. Preventing overtime hours can appear manageable… at least on paper. But what about when adjustments must occur? As we know, change is common. Minimally, employees get sick and have personal events that take them away from regularly scheduled hours. When these changes occur and time is precious, this is when employers are most at risk for inflated overtime costs and overburdening certain employees. However, this challenge can be minimized. By assigning limits to employee hours based on a period of time, supervisors can conveniently and efficiently manage change by redistributing hours to the appropriate employees based on hours limits, availability and many other factors.

Inefficient tools and schedules lead to excessive overtime, frustration for staff, and other costs for employers. By implementing a simple solution such as TimeSimplicity, employers can take control of costs while improving a long list of additional challenges. Contact 941 Timekeeping to learn more about the many benefits of automated employee scheduling.

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