What reliable source do your managers use to confirm external labor timecards are accurate before they are approved and paid?

The Most Common Answer isn’t the Best Answer

If you are like most companies, the answer is they have no reliable source. Instead, businesses are assuming the honor system is reliable enough, timecards are assumed accurate as presented, and your managers are approving timecards week after week. Many processes also include a group of process administrators who chase down managers … not to help confirm the timecards are accurate, but solely to confirm the timecards are approved so your suppliers can be paid on time. 

How crazy is that? What other category of spend exists in your business where receipt of goods or services is not verified and instead assumed received based solely on the honor system? I bet none.

Evidence Underpinning Challenges with the Honor System

The proven reality is that over 30 percent of the reported time on timecards is actually not worked. Considering external labor can be one of the largest spend areas for the company, businesses that approve timecards without a reliable verification of the hours worked are paying a huge premium to their labor suppliers for the hours not worked. 

By way of a non-exhaustive illustration, a quick Google search proves external labor suppliers are struggling to achieve a full day’s work. Wipro fired employees for moonlighting. IBM commented about the same trend in its’ business. During the company’s Q2 earnings announcement, Infosys made it clear that the company does not support moonlighting and employees with dual employment were fired. TCS is driving its staff to work from the office citing productivity concerns with work from home. These companies, and others like them, are unable to manage the resources they contract out as external labor to their clients. 

Trust Without Verify Is Proving Costly

What makes you think companies supplying your external labor can control and govern the timecards your business receives?  They can’t and are motivated not to. What percentage of timecards your business receives reflect less than a full 40-hour work week? I bet close to zero. Their economic models are dependent upon your business not questioning the timecard while invoicing you for at least a 40-hour work week regardless of reality. 

Closing this gap is Easy, Accurate, and 100% Automated with Sapience TransparenSEE

In an automated, secure, seamless, and unbiased way, Sapience will collect and provide accurate data as the definitive source for timecard validation for both at home and at office workers.  Instantly, you will stop paying your external labor suppliers based on the existing unreliable approach and start paying based on actual time worked. The result … save at least 30 percent of your external labor costs.

Capital markets are tightening and cost management is increasingly important. Can your business afford to continue to overpay its external labor suppliers? What’s your external labor spend times 30 percent?

Request your free demo today.