Timesheet errors are common in shift-based businesses, but that doesn’t make their impact less significant. One survey found that the average company has only an 80.15% payroll accuracy rate, and each timesheet error costs around $291 to fix.
Clearly the costs of this everyday annoyance add up quickly. This is especially true for businesses with multiple locations and dozens (if not hundreds) of employee timesheets.
Luckily, we have the solutions. Keep reading to learn how to (mostly) get rid of the most common timesheet errors.
The 11 most common timesheet errors
The following are the most common timesheet errors shift-based businesses encounter.
Incorrect data entry: Manual data entry makes it easy for employees to make mistakes and record the wrong clock-in or clock-out times.
Calculation errors: Manual calculations are equally error-prone, resulting in incorrect math and inaccurate payroll.
Forgetting to log time: Employees may forget to log their hours, especially when using manual systems.
Time theft: Sometimes, employees can deliberately misreport their hours worked, inflating their hours or even clocking in for coworkers, leading to employees being paid for time they didn’t work.
Misreading numbers: If you use paper timesheets, handwritten numbers can be easy to misread.
Damaged/lost sheets: Paper timesheets are also prone to damage or loss.
Missed breaks: Failing to record breaks can lead to inflated work hours.
Missed overtime: Conversely, failing to record overtime can lead to underpaid employees.
Wage theft: Wage theft can result from both errors and deliberate tampering by the employer, such as taking time off employees’ timesheets.
Attributing time to the wrong job/location: Manual processes can make it easy to accidentally attribute time to the wrong job or location.
Not reviewing time before submitting: Submitting timesheets without reviewing them first allows errors to slip through unnoticed.
You can eliminate most of these errors with the right processes and a robust timekeeping system.
Tried-and-true ways to minimize timesheet errors
Use these methods to stop timesheet errors and maintain more accurate payroll.
1. Identify the source of the most common mistakes
The best way to stop timesheet errors is to determine why they’re happening and tackle the problem at the source. Figuring out whether the error is primarily a human or system error will help narrow down what needs to change about your timekeeping process.
Here’s a simple chart to help you pinpoint where to start.
Problem | Type of Error |
Not clocking in or out | Human |
Unreadable timesheet | System |
Problems calculating hours | System |
Clocking in at the wrong location or job | Human |
Mistakes are hard to correct | System |
Not reviewing before submitting | Human |
Time theft | Human |
Wage theft | Human |
Missed breaks/overtime | Human |
Incorrect data entry | Human |
If you’re seeing a lot of human errors, you’ll need to talk to your people, make sure they understand how the time tracking process works, and address any recurring issues with employees one-on-one.
Whether the errors are mostly system or human, you’ll also want to consider how well your system serves you and your people. The more simple, intuitive, and organized your time tracking system, the lower the likelihood of errors and oversights.
Case Study: Tribeca Pediatrics streamlined scheduling and time tracking with a new system and saw impressive results.
2. Teach workers how to review their timesheets
Empower employees to own their time tracking by teaching them how to review their sheets. This can help workers spot issues with their time tracking and prevent timesheets with mistakes from being submitted.
Having employees review their timesheets will lessen the burden on your HR and payroll team while building employees’ confidence. They’ll know exactly how much they worked and what they can expect to get paid.
3. Set clear expectations
Clear communication is essential when running a business with multiple employees working multiple shifts. That’s why you need to set clear expectations for time-tracking rules and responsibilities.
If employees aren’t bothering to track their time, you need to sit down and explain why it’s an essential aspect of their job. Explain the ramifications of timesheet errors and how mistakes could affect their pay.
Periodically refresh all employees on time tracking processes and expectations so everyone remains on the same page.
4. Allow employees to edit their own sheets
If your current timekeeping system allows, let employees edit their timesheets. Employees best know the details of when and how much they worked and may catch mistakes more quickly than a third party like HR. Allowing them to fix those mistakes themselves also reduces the need for back and forth between employees and managers or HR, improving efficiency.
Case Study: See how MakeSpace upgrading its scheduling system led to happier employees.
5. Audit timesheets regularly
We all want to trust our employees to enter their hours correctly the first time. But the only way to be sure is to review the timesheets yourself (or have a designated HR employee do it).
Create a review system where multiple eyes examine all timesheets. For example, have your employees review the timesheets before submitting them to HR, then have HR review them a final time before they go to payroll.
Correcting timesheet errors before they get attached to payroll is much easier than fixing the problem later.
6. Explore your current timesheet system
There may be features you aren’t using in your current time-tracking system that could improve the process for your business. If you use a software-based system, make sure you’re taking full advantage of its features to simplify or automate processes and minimize opportunities for errors. (See how much you can do with Deputy, for example.)
You can also use this as an opportunity to decide whether the system is working for you or not. Sometimes, businesses outgrow their time-tracking system and don’t realize it until they start having problems. Examine your system to see if there are potentially useful features it lacks, cumbersome or confusing processes, or other areas where it falls short.
7. Upgrade your timesheet system
Maybe after exploring your current timekeeping system, you’ve realized it’s not meeting your current needs. Perhaps you’ve experienced significant growth, expanded to multiple locations, or simply decided you want to go digital.
A simple switch can streamline the entire timekeeping process for your company and minimize common timesheet errors.
It’s time to upgrade to Deputy
Deputy is a flexible timekeeping software that simplifies time tracking for businesses and employees alike. It includes scheduling, HR functions, and easy clock-ins and clock-outs. Our software is perfect for businesses juggling multiple employees and shifts.
Book a demo today to see how Deputy can help your business improve timekeeping processes and reduce timesheet errors.
