It's no secret you pay for employees that aren't at work. With friends clocking in and out for each other (fraud known as "Buddy Punching"), how can you make sure you only pay for hours actually worked?
Identify Your Potential Savings With a Biometric Time & Attendance System:
A typical 200-employee company has a four million dollar payroll. The savings generated by automating time & attendance operations adds $¼ million to your bottom line! This 6.875% labor savings is based on a study performed by the American Payroll Association and Robert Half in calculation, lost time and error factors alone. The additional benefit of better management decisions based on accurate labor information, and automatic exports to payroll? - priceless.
|US $ Annual Savings # Employees||50||100||250||500||1000|
|2. Lost Time||$52,000||$104,000||$260,000||$520,000||$1,040,000|
|3. Human Error||$15,600||$31,200||$78,000||$156,000||$312,000|
1. Manual Calculation Factor
It is estimated it takes a bookkeeper approximately 7 minutes to manually add up time sheets, calculate overtime and enter data. Add to this the time spent correcting time and leave errors, and transferring data to your payroll program or telephoning your payroll service bureau. A Biometric Time & Attendance System would save you at least six hours of time per employee each year, which calculates to over $15,000 per year for a 200-employee company.
2. Lost Time Factor
Studies have shown the average employee is overpaid for 4 hours and 5 minutes of unauthorized or unearned time each week (late breaks, tardiness, early departure.) Assuming automation reduces "lost time" by 24 minutes per day - that's two hours each week. A Biometric Time & Attendance System would save your 200-employee company over $200,000 per year.
3. Human Error Factor
Studies have shown payroll error factors to be between 1% and 8% of total payroll and include accuracy in reading time sheets, transposing numbers, rounding and calculation errors. Assume your error factor is minimal, say 1% of payroll, you lose $62,400 each year in a 200-employee company.
The above factors show a $286,000 per year savings for a 200-employee company. Above numbers based on a company with employees earning an average of $10.00 per hour & department head earning $15 per hour.