It can be said that most business applications only produce indirect savings. Did you know a well-implemented timekeeping system can generate direct savings? Here are some ways to avoid time and attendance calculation errors and start saving money.
According to the American Payroll Association, companies that lack automated timekeeping have up to an 8 percent error rate on their payroll, with more than four hours being wasted per employee, per pay period due to long lunches, arriving late, and leaving early. To put this in perspective:
Let’s say a company has 200 employees, with an average cost of $20 per hour per employee. Then just a 0.5 percent error rate on just one time card equals $42,000 a year in mistakes! All it takes is one error out of 200 in each pay period to start adding up to big dollar amounts.
Time and money can be saved by using an automated time and attendance system. Here are some tips on what a quality solution should do:
- Eliminate or reduce errors: with manually tallying timesheets, small errors can add up.
- Eliminate buddy punching: an employee may ask other employees to make a punch for them, thus cheating the system.
- Do away with data errors: every time someone edits a time card, it is an opportunity for mistakes.
- Remove timesheet “fudge factor”: If employees submit the time worked, how trusted and honest is it?
- Reduce overtime due to poor scheduling: Outdated and incorrect data can lead to poor utilization of employees, often resulting in overtime that can be avoided.
The system should also maintain your employee data in one location and interface with your payroll platform while ensuring compliance with labor laws and government and union regulations.
In short, a properly implemented time and attendance system can generate direct savings to an employer’s bottom line.
The time and attendance features of iSolved allow employers to track and monitor meals, breaks, and overtime, calculate and manage comp time, track employee locations when they clock in and out, monitor errors, and manage other time policies for complete and accurate time cards. Plus there’s no importing and exporting, duplicate data entry, or logging in to multiple systems. Request a free quote today and see how GTM can help your business.