A time and attendance system like TimeWellScheduled can save you thousands of dollars when you consider the negative financial impact of three key factors: time theft; time spent manually figuring time sheets; and human error in calculations.
Time Theft: According to studies by the Robert Half Agency and the American Payroll Association (APA), employee “time theft” – when employees clock in/out early or late or take long lunches or breaks – exceeds 10 minutes per day, per employee.
According to the APA, the average weekly « theft » of time (long lunches and breaks, tardiness, early departures, etc.) is 4 hours and 5 minutes per employee per pay period.
Manual Calculations and Errors: Processing paper based time cards and sign-in sheets also adds to these costs. APA’s study also says it takes on average, six minutes to add and audit just one employee’s time card. The study estimates that manual time card computation errors can cost 1% to 8% of your annual gross payroll. This can come from keying in numbers incorrectly, transposing numbers, or misreading handwritten records.
Savings Fact: For a company with 25 employees who are paid an average rate of $10 per hour, total savings add up to about $24,050 a year based on just these three factors.
According to IRS statistics, approximately 33% of employers make payroll errors costing them billions of dollars annually in penalties. But that’s just the beginning, other problems include:
Inefficient Time
The American Payroll Association shows that the manual calculation of timecards takes approximately 5 minutes per card.
Human Error
The American Payroll Association shows an error rate of between 1-8% of total payroll in companies that use traditional timecards. We will use a 2% error factor to calculate the potential savings.
Overpayment
According to the American Payroll Association, the average weekly « theft » of time (long lunches and breaks, tardiness, early departures, etc.) is 4 hours and 5 minutes per employee per pay period.
With TimeWellScheduled you can use the watchdog feature to set grace periods for clocking in and out. Employees will be alerted when trying to clock in too early.
Try TimeWellScheduled free for 30 days.
