Human capital plays a vital role for every organization. The growth and stability is achieved only when the employees work in tandem with organization goals. The success of organization is measured by the well-being of the employees. That means happy employees render happy customers, which sets an environment for organization to perform at its best.
Organizations’ should focus on well-being of the employees. Well-being means providing organized human capital system wherein employees’ life cycle, employee engagement and experience are well taken care. However there are many challenges which are affecting employees who work mostly in the field or contract basis. Field/Contract employees are struggling to manage their time and attendance system. Unlike in-house employees who use access card or bio-metric system for time and attendance management, field employees do not have proper system in place.
So in this post we would address problems that are hindering field employees work performance which should be given attention to.
Outsourcing in IT is very obvious; it would be payroll, recruitment, branding etc tasks. When it comes to outsourcing employees to other organization for mutual benefits, lot of intricacies are involved. Challenge is to ensure seamless human resource management. However parent companies are lacking proper system to monitor contract employees’ time and attendance management. There is no valid time and attendance system for contract employees, as contract employee has to communicate verbally to parent company over his attendance else rely on time sheets which are more likely can be manipulated and cause significant loss to projects primarily affecting deadlines.
For Field employees :Many IT and Non-IT firms have large chunk of human resources working in the field and field work has to do a lot with the time and location constraints. There won’t be a certainty of location and time for field employees as it keeps changing based on the organization’s requirement to visit various customer/client locations. Therefore challenge with monitoring field employees’ attendance is huge. Problem is either field employee has to visit office for mere attendance else communicate via phone about attendance virtually which cannot be trusted much. This is a big problem for both employee and employer to manage accurate attendance.
Time theft—when employees accept pay for time they have not actually worked. According to studies by the American Payroll Association (APA), almost 75 percent of businesses are affected by what is known as “time theft.” This occurs when employees are paid for time they have not actually worked; either by having someone else clock them in or by inaccurately recording their hours.
Below research statistics show time lost in time-theft. This is relatively at high rate.
When employees work in a field, it is certain to miss important team meetings and announcements. Office meeting would have happened but never shared an email about the new happenings to remote employees. As per research, Remote employee work-life involves close to 40% travel on a daily basis. So it is unlikely for them to meet managers to discuss over work status daily. This brings a challenge; right now remote employees do not have any system to communicate with managers or peers of the organization when they travel most of the time to client places. This breeds inconsistent communication with employees and will be a problem for both employee and the organization.
For many instances, while the employees work remotely, in order to send frequent important updates to peers to co-ordinate with the team work, this is not possible with traditional attendance system. Real-time work update serves, data being shared at the right time and will be utilized it to analyze and monitor work in a systematic way.
Payroll system for contract employees and field employees depends on number of days/hours, they worked. Traditional payroll takes account of time-sheets manually and more chances of errors by due to inaccuracy in accounting exact working hours. These errors can be very costly as it involves direct money transaction and results in big loss to organization, without attendance integration with payroll, lot of inaccurate working hours will still fetch money from the organization which is a nightmare and should be eliminated.
Payroll should integrate with time and attendance system which accounts accurate billable hours—to monitor accuracy in the pay.
In conclusion, managing time and attendance till to payroll processing, field/contract employees are facing lot of challenges. Organizations should pay attention to these problems and should mitigate the risks associated with it and ensure a proper human capital system is in place for well-being of the employees. Essentially it’s all about people who matter to organization’s growth and success.