Survey Indicates That Too Many Depend On Manual Timekeeping - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Survey Indicates That Too Many Depend On Manual Timekeeping

A surprising sum can be cut from payroll costs by automating the timekeeping process.

Although we're living in the age of cell phones and PDAs, workers in many sectors still use punch cards and time sheets to record their whereabouts for the payroll department. But timekeeping software can, on average, pay for itself in a few months.

The findings were part of a report compiled by Nucleus Research, a research company that was hired by timekeeping software vendor Kronos to survey 25 Kronos customers. The customers were in health care, manufacturing, retail, education, and government, and they had head counts ranging from 300 to 15,000.

Payback comes from fewer calculation errors, reduced processing time, less unauthorized leave and overtime, and elimination of paper time-card costs, according to the report.

Although the Nucleus study looked specifically at Kronos customers, the general findings are consistent for most companies that move from manual timekeeping to automated processes, says Paul Hamerman, research director at Giga Information, another research firm that follows human-capital-management trends but wasn't involved with the Kronos/Nucleus return on investment study.

"The results aren't surprising. Timekeeping is a neglected process that can be complex, high-volume, and full of opportunities for error," Hamerman says.

The Nucleus study indicates that 75% of Kronos customers report an ROI of 250%, while the median ROI was 469%. Some realized payback in about five months, and 88% of those surveyed said that the elimination of payroll errors alone paid for the system. Mike DiPietro, Kronos VP of industry and product marketing, says that Kronos software costs between $50 and $150 per employee.

Cynthia Summers, human-resources IS administrator at Health First Inc., a health-care services firm, says her company deployed Kronos software more than a year ago for all of its 6,000 employees, ranging from part-time, full-time, and per diem nurses to executive staff. The automated process, in which employees swipe an ID badge into a clock device that is integrated into the Kronos systems, replaces a manual process that included time sheets and punch cards.

Within the first year, Health First reduced its payroll costs by $4 million, or 3.5% of total payroll costs, Summers says. The system eliminated mistakes that were made when manually calculating complex time rules (like overtime, shift differentials, and workshop pay); it reduced inaccurate time records; and it also allowed Health First to reduce its payroll department to two clerical workers from four.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2019 State of DevOps
2019 State of DevOps
DevOps is needed in today's business environment, where improved application security is essential and users demand more applications, services, and features fast. We sought to see where DevOps adoption and deployment stand, this report summarizes our survey findings. Find out what the survey revealed today.
DeveloperWeek NY and MongoDB World Tackle Transformation
Joao-Pierre S. Ruth, Senior Writer,  6/25/2019
GDPR One Year Later: Was the Hype Worth It?
Guest Commentary, Guest Commentary,  6/19/2019
Register for InformationWeek Newsletters
Current Issue
A New World of IT Management in 2019
This IT Trend Report highlights how several years of developments in technology and business strategies have led to a subsequent wave of changes in the role of an IT organization, how CIOs and other IT leaders approach management, in addition to the jobs of many IT professionals up and down the org chart.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll