It can be said that most business applications only produce indirect savings. Did you know that a well implemented time and attendance system can generate direct savings?
Multiple studies have shown that companies who process payroll manually have error rates from 0.5-2 percent. To put this into perspective, if a company has 200 employees, an average cost of $20 per hour, per employee and a 0.5 percent error equals one time card, that equates to $42,000 a year in mistakes! All it takes is one error out of 200 in each pay period to start adding up to costly dollar amounts.
Time and money can be saved by using an automated time and attendance system that integrates with payroll. Here are some tips to look out for that a quality system should do:
With manually tallying time sheets, a small error can add up. Look for a system that eliminates the need to manually calculate and total hours for employees.
Employees may ask other employees to make a punch for them, thus cheating the system. Look for a system that offers secure login, bio-metric scanning, fingerprint readers or other security functionality.
Every time someone edits a time card, it is an opportunity for mistakes. Look for a system that allows for automated approval rules based on time card edits. For example, if an employee misses a punch, you can require a manager to make the update.
If employees submit the time worked, how is it trusted and honest is it? Using a time and attendance system eliminates the opportunity for employees to pad their time by a few minutes each pay when they mark their hours worked on a manual time sheet.
Outdated and incorrect data can lead to poor utilization of employees, often resulting in overtime that can be avoided. Look for a system that offers overtime alerts and reporting to empower managers to make staffing and scheduling decisions appropriately.
In short, a properly implemented time and attendance system can generate direct savings to and employer’s bottom line. Request a free demo of our robust time and attendance software today.