Is Fining Employees for Late Timesheets the Way to Go?
KPMG has raised eyebrows across the industry with its new policy of fining workers if they submit their timesheets late. Employees who work for the company can be liable to pay a fine of £100 if they don’t submit their paperwork on time. It’s a questionable move, and one that understandably has employees irked.
When asked about the new policy, a spokesperson made the following statement, ‘We are aiming for a 100% on time completion rate and have informed all colleagues why timesheets are important. Our partners who run our individual business areas are in charge of making sure their teams meet their responsibilities and in all areas do or will impose financial penalties for colleagues who breach the policy.’
The firm will dock £100 out of employees’ individual bonus but exceptions would be made for those who are off sick or unable to turn in their paperwork for legitimate reasons.
KPMG is among the Big Four, one of the largest accounting firms in the world providing a range of auditing and legal services. Ernst & Young, a competing firm, doesn’t have a similar policy of fining staff for late submissions. An EY spokesperson said,‘In the event that people do not submit their timesheets EY take steps to reinforce its policy, this does not include a monetary fine or locking people out of the system.’
Any new policy will undoubtedly be met with criticism. But before jumping to any conclusions, let’s look at valid reasons behind the new policy.
The Costs of Late Timesheets
Timesheets are widely used to record the number of hours an employee has worked. They provide a simple solution for companies to not only measure productivity but also to bill more accurately. It’s not uncommon for large organisations to handle hundreds of timesheets, all of which need to be carefully reviewed before being approved.
Paperwork that’s not submitted on time could delay a team from creating an invoice, which may result in missing a client’s payment window. Some companies may be more flexible in terms of pushing late payments through. But others have a much stricter remittance policy. So any delays in submitting timesheets can create a cascade of events that can adversely affect your company’s cash flow.
Another issue is having to track down the individuals responsible for submitting timesheets late. That’s wasted time that could otherwise have been spent on more productive activities. These two factors help explain the logic behind KPMG’s latest policy, but whether it’s the right approach is still up for debate.
Automated Time Tracking
Timesheets undoubtedly play a critical role for any organisation. But it can also be difficult to make sure that all employees submit their paperwork on time. So how can you get employees to fill out and submit their timesheets in a timely manner?
One solution is to automate time tracking. An automated system cuts down on the dull task of manual data entry, and makes it easier to create and submit timesheets. Automated time tracking means reduced processing time and real time reporting, both of which help save your business money in the long run.