Staying competitive in business today requires companies to find new, controllable ways to drive revenues and profitability. On that note, many companies today do not realize that they can significantly reduce the cost of one of their greatest expenses, employee labor, thus increasing company profitability.
The American Payroll Association (APA) has declared numerous ways in which companies are hurting their profitability by not implementing today’s automated timekeeping technology. Take a look, and evaluate where your company could save:
Cost 1: Human Error
The APA estimates that the rate of human error in time card preparation and totaling is between 1% and 8%. Therefore, a conservative 2% error rate on a $12,000 payroll would equal $240 in erroneous wages.
Cost 2: Wasted Labor Minutes
Did you know that just 15 employees receiving pay for merely 4 minutes of “wasted” time per day [untracked breaks, extended lunches, over-approximated punch times, etc.] will total 1380 minutes [23 hours] of additional pay per month?
Cost 3: Manual Time Card Totaling
The average payroll clerk spends 7 minutes per time card each pay period:
- Preparing and handling time cards
- Computing time card totals
- Verifying time card totals
- Computing shift and department totals
- Reconstructing lost or damaged time cards
The Cost: Preparing 100 time cards will take an estimated 11.67 hours to complete. Therefore, at an average clerical wage of $15.00 per hour, time card preparation would cost $175.05 per pay period.
Today’s automated timekeeping technology is a valuable resource as it is able to eliminate these costs, and save you significant amounts of time.