Keeping tight track of your employees' time can help cut costs during touch economic times. Automated Time and Attendance systems can save surprisingly signficant amounts of money -- you just need to find the system makes the the most sense for your company's needs.
With the economy still putting the squeeze on small and midsize businesses, many comapnies are going over their budgets with a fine tooth comb. And one under-appreciated place to look for savings is in how you track your employees' time. Manually keeping track of your employees' hours can be a hassle and can make it tempting for people to embellish the time they spend on the job.
Time and Attendance Systems Can Deliver Big Savings Time and attendance systems can be a streamlined, cost-efficient way to track the days and hours your employees' are actually working, saving money in bookkeeping costs and helping to prevent fraud.
It has been estimated that 8 minutes per employee per week are spent on filling out their time sheets, and then your payroll team manually processing them. The time, and the potential costs, can add up quickly.
Acumen estimates that workers earning an average of $16 an hour, with an error of 2% (in the employee's favor), can cost their employer $12.80 per week each -- or $307,200 a year for a company with 500 employees.
Acumen goes on to calculate how much time automated time and attendance systems can save. Time and attendance systems reduce time-card preparation and review to 1-2 minutes, cutting costs by 75%. For our 500-worker example company, that adds up to savings of more than $9 per employee per week, or a total of more than $215,000 per year.
Tracy Inc. has also calculated other ROI factors to consider. Time and attendance systems can phase out a number of time-consuming procedures for your payroll staff (or for supervisors if that's who deals with time sheets in your organization:
Preparing time sheets for new employees
Passing out and collecting the time sheets each pay period
Manually separating the time sheets by each department
Calculating the total time on each time sheet
Computerizing the hours of each employee in your payroll software
InformationWeek Must Reads Oct. 21, 2014InformationWeek's new Must Reads is a compendium of our best recent coverage of digital strategy. Learn why you should learn to embrace DevOps, how to avoid roadblocks for digital projects, what the five steps to API management are, and more.