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Cost Justification |
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Cost
Justification
Time and
Attendance - Why do I need iGuard?
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 |
|
1. Calculation
|
$3,900 |
$7,800 |
$19,500 |
$39,000 |
$78,000 |
|
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 |
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Total Savings: |
$71,500 |
$143,000 |
$357,500 |
$715,000 |
$1,430,000 |
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.
Total Savings
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.
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