Read below and see how a 50 Employee Company saved$17,414.99 per year by automating their time and attendance with our time clock software or click here for your own custom analysis.

In this example we are assuming the following:

50 Employees with an average pay rate of $10.00 per hour

A Weekly Pay Period

A $12.00 per hour rate for the employee who processes payroll



Three Expensive Problems:

 

EXPENSE #1: Manual Computation of Hours

    Industry experts estimate it takes 3 minutes to manually compute hours for one employee for a weekly time period. The following chart indicates the cost of this function. Our Example assumes even less time per time card than what the experts claim.

2 Number of minutes to calculate hours per employee
X 52 Number of pay periods per year
= 104 Number of minutes per employee per year
X 50 Average number of employees
= 5200 Total minutes to calculate hours
/60 Minutes
= 86.6 Number of hours per year
X 12.00 Calculator’s Average Hourly Rate $


$1039.99 (#1) TOTAL COST OF MANUAL COMPUTATION



EXPENSE #2: Error Factor

Errors made in manual computing time in the absence of easy time tracking software are often an overlooked cost. These errors will cost you thousands of dollars per year. When was the last time someone came to you to complain they were overpaid? While experts believe that the rate of error is 4%, we have used 1% in this illustration.


50 Average number employees
X 40 Average number of hours per week
= 2000 Number of hours per week
X 50 Weeks per year
= 100,000 Number of hours per year
X 10.00 Average hourly rate of all employees $
= 1,000,000 Total yearly payroll $
X 0.01 One percent error rate

  $10,000(#2) TOTAL COST OF ERRORS


EXPENSE #3: Lost Time

Annual surveys on theft of time show that the average worker "steals" FOUR HOURS AND FOURTEEN MINUTES a week by coming in late, taking long lunches and breaks and leaving late to get overtime pay.

With a properly configured time and attendance system with our clocking in machines and software, you can recover much of that lost time. As has been the case throughout this example, we will be conservative and make our calculations with the assumption that we can recover only three minutes per day. Even at that low time recovery level, the cost savings are staggering.

12.75 Hours recovered per employee per year
X 50 Average number of employees
= 637.50 Total hours lost
X 10.00 Average hourly rate $

  $ 6375.00 (#3) TOTAL COST OF LOST TIME

#1: Manual Computation ....................... ($1039.99)
#2: Cost of Errors .................................. ($10,000.00)
#3: Lost Time ......................................... ($6375.00)

GRAND TOTAL ..................................... $17,414.99
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