Whether you’re already making the transition to time and attendance software, or just pondering the idea of adopting it, there are significant savings that come with using software to track your employees time.
Calculated Manual Timekeeping Costs
First lets talk about your company size. This is the basis of your financial gain when talking about time and attendance. Lets say you have 100 employees who average 40 hours of work per week at an average rate of $10 per hour. Now say each of those 100 employees ‘wastes’ 30 minutes per day on extended lunches, unapproved breaks, rounded arrival/departure times, etc. Over the course of a year that amounts to 1500 wasted hours which equates to $15,000 pay for wasted labor minutes.
Manual Time Card Totaling Cost
The American Payroll Association estimates between 1% and 8% human error in computing time cards. Assuming there is only a 1% error in the 100 man company we previously referenced, that would account for $900 annually. Time and attendance software helps to solve this issue because it eliminates the manual process of adding together time sheets. To make another assumption, lets say the same 100 man company has an employee who makes $10 per hour and uses 10 hours of their work week to calculate time sheets. Each year the company will pay that employee $2,600 to simply add up time sheets and put them into the payroll.
Lets Talk Dollars
Now that we have figured out how much this hypothetical company is spending on timekeeping costs and manually totaling time sheets, lets add it all together and see what we have. The total amount associated with manually calculating time sheets equates to $18,500. That 100 man company could easily take a portion of that money and invest in a timekeeping system to catch ‘wasted’ time and eliminate human error. The savings alone will more than pay for the software and even begin to save this specific company money over the years.
Curious to see what your company is spending to manually record and calculate time? Download our labor management calculator and see for yourself.