Paying the Penalties of Poor Rostering

So many times we hear from people that it's impossible to save them money on their payroll spend. Every client that we speak to that spends money on overtime, seems to consider that it's just a cost of doing business. And that may be true, but there's a really high chance that some of your overtime spend is simply being wasted.

I recently spoke to a potential client who spent over $2M on overtime last year, while at the same time, they acknowledged that they had several Permanent Part-time staff members who were getting paid for their minimum hours but didn't even have to go to work because they weren't getting rostered on to jobs! How insane is that!

If you pay an employee overtime, it should be an exception to the rule, and not the standard way you work. Excess overtime isn't just bad for your bottom line, there's a bunch of reasons why overtime attracts penalty rates, and all of them are around the impact on the employee!

Long hours and time away from home and family can lead to an exhausted and unhappy employee, and even cause them problems at home. In a time where many industries are reporting huge levels of underemployment, there are staff around who want the work, so why pay double, and undermine your productivity at the same time? It just doesn't make sense!

As employers, it's our job to make sure that our staff aren't overworked and stressed, and we can do that by ensuring that overtime doesn't become a standard operating procedure for our businesses. By limiting overtime, not only are we saving ourselves money on our wages spend, we're almost guaranteed to improve efficiency through happier and healthier staff.

With the right rostering and attendence solution, situations like this can be mitigated and payroll costings can improve dramatically, and at relatively little outlay, or expense to your business. Using an Excel spreadsheet as a roster may seem like it's free, but let's be honest, in even medium-sized businesses with complex payroll requirements, it's actually costing you a fortune.

Whether it's double-time that you shouldn't have to pay, administrative overhead from collating hundreds of paper timesheets, or human error caused by re-entering data between timesheets and payroll system, by not paying for a proper time and attendance solution, you're spending far more than you ever imagined.

Given that we're coming up to the end of another financial year, it's a great time to start discussing options for cleaning up your systems, and getting ready for the year ahead! So give us a call today and book some time with one of our experts!