An employee’s rate of productivity can be basically measured with his or her allocated work hours. However, the working hours don’t entirely fill the payroll; there are factors to consider generating the appropriate salary for every employee. These factors can be associated with the company’s rules and regulations that may refer to the employee’s incentives or bonuses, allowances, loadings, penalties and of course, the pay rate.
These factors vary from time to time that’s why adjustments are always constant and should be implemented or programmed before the long-awaited pay day to avoid issues and headaches.
Using manual calculations or using the “traditional” payroll system will take you enormous amount of time creating the appropriate formula; do some complex computations and generating a comprehensive report. However, this method has the potential to create inaccuracy. This is where time and attendance software comes into the picture.
From the name itself, time and attendance software is especially made to tackle the issues of making accurate and comprehensive payroll based from the time and attendance sheet considering the rules and regulations of the company, thus the name award interpretation.
Award interpretation was first regarded as a feature of time and attendance software but later on, it is considered the time and attendance itself and now generally acceptable to refer as another name for the software and vice versa. Award interpretation sets the necessary formula for generating the salary of an employee from the time sheet plus the bonuses, allowances, penalties and so on and so forth. It is also “flexible” to necessary adjustments and can be manipulated whenever needed.
After you have successfully installed your time and attendance system, you can now take the control panel and set the necessary formula that will be interpreted by the software.
Although you can leave these configurations to the I.T. department, it is best that you also know so that technical issues can be easily addressed by you and be quickly fixed before follow-op problems surface up.
1. A little hardware and software configurations.
Since we are dealing with technicalities, it is important that you know some components to be taken in consideration that includes LAN and WAN networking principles, database manipulation, computer hardware compatibility and if necessary – internet connectivity.
2. Draw out your arithmetic skills.
Once the terminals are in place, it’s time to set the necessary fields. The first step is to set the employees’ pay rates multiplied by 60 minutes or 1 hour, don’t worry, the software will automatically adjust the pay rates to minutes and even seconds.
You can manipulate the software by constructing formula that include conditions or in I.T. terms program or protocol such as if an employee performed a satisfying performance his/her salary will increase by 10% this pay period or an employee will receive 5% of the sales as commission.
3. Change is constant.
Companies grow, employees get promoted, fees such as taxes increase and adjustments should be implemented immediately and accurately. However, you can set the adjustments in advance by setting conditions in the very beginning such as if the company meet certain goals, some employees will get promoted and his/her pay rate will increase by 50%.
Technology is fast progressing creating a new chapter that benefits the business industry – take advantage of it. Automation has proven its worth throughout the years and implementation of time and attendance software has becoming more and more mandatory. There are immense technicalities along the road but as long as you have the knowledge, you will not get lost instead you can use these for your company’s development.
Eric Flintoff is a Business Consultant specializing in Management Information Systems known for his effective approach on time and attendance software. For a decade, he successfully implemented time and attendance system to over 1,000 companies. With the experience and expertise, he is considered as one of the youngest promising business consultants.
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