HOW MANY MINUTES PER DAY ARE YOU OVERPAYING EMPLOYEES?
Whether your employees are estimating punch times, arriving late, leaving early or simply not tracking their time; if you’re not using a time clock, you are paying too much for employee labor!
THE COST OF MANUAL TIMEKEEPING
Erroneous wages paid
The American Payroll Association estimates that the rate of human error in time card preparation is between 1% and 8%.
The Cost: A conservative 2% human error rate on a $12,000 payroll would equal $240 in erroneous wages paid per pay period. Moreover, the cost to re-issue correct payroll amounts (if the error is detected and reported) further increases your cost of human error.
Employee punch cards
The average payroll clerk spends 7 minutes per time card each pay period:
• Preparing and handling time cards
• Verifying time card totals
• Computing time card totals
• Computing shift and dept. totals
• Reconstructing lost/damaged cards
The Cost: Preparing 100 time cards takes an estimated 11.67 hours to complete. At an average clerical wage of $15.00 per hour, time card preparation would cost $175.05 per pay period.
Employee time theft
Did you know that just 15 employees receiving pay for merely 4 minutes of “wasted” time per day [e.g., untracked breaks, extended lunches, over-approximated punch times, etc.] will total 1380 minutes [23 hours] of additional pay per month?
The Cost: If your average pay rate is $10.00 per hour, then you pay an extra $230.00 each month for labor worked.
HOW YOU SAVE ON EMPLOYEE LABOR WITH AUTOMATED TIMEKEEPING
RECOVER OVERPAID WAGES
Employee labor is among an employer’s greatest expenses. The good news is that there are many, many ways to minimize this cost with automated timekeeping. Controlling overtime costs is only the beginning. It’s for this reason that automated timekeeping is such a critical tool for employers.
A small investment in timekeeping can return immense savings. Here are just some of the ways employers can save.
Employees arrive late, leave early, and take long breaks. They also forget or approximate in/out times… in their favor. They’re not dishonest. They’re just human.
If you’re not using automated timekeeping you are overpaying for labor. But that doesn’t have to be the case. With automated timekeeping, employees are paid for the time they work, not an inflated best guess.
END BUDDY PUNCHING AND TIME THEFT
According to Nucleus Research, 3 out of 4 companies experience loss from buddy punching.
Whether it’s employee “buddy punching,” falsifying punch times or just getting paid but not doing the work, you pay dearly when you don’t have the right tools. When employees are dishonest, everyone suffers. The solution is actually quite simple (yes, automated timekeeping!).
ELIMINATE OVERHEAD & ADMIN TIME
Take the pain out of collecting time and preparing payroll! Turn days into hours and hours into minutes. Tracking hours, overtime, holidays, time off requests, accruals balances, and more, is a hassle. People make mistakes, so tracking this stuff usually results in costly errors. But automated timekeeping will simplify and change how you do business.
You deserve happy HR and payroll people, so give them their sanity back with automated timekeeping!
With automated timekeeping, preparing time card data for payroll is a matter of a few clicks!
Whether it’s the convenience of gathering punch data in a fraction of the time or simply minimizing the cost of human error, with automated timekeeping submitting payroll doesn’t get much easier!
Our Workforce Management Suite is Simple and Affordable and will save you $1,000’s per year.