Time and attendance system – how much money could it save you?

Feb. 21, 2011 - PRLog -- It’s happened!

Your company has identified the need for a time and attendance system.

You,  a HR/finance/IT specialist have been tasked with introducing it to your company.

You have started your search on Google, checked various websites, probably read some articles, whitepapers, watched some fancy videos.
By now, you are probably an expert in listing providers names and the features of their systems. That’s all good, but when it comes to presenting your proposition to your director, there will be one thing which will matter to him/her!

Figures!

How much time, money, efforts can this system save you/your company/your boss? Learn it now!

Let’s have a closer look at the example below.
Company XYZ Ltd  has 120 employees.
80 production staff- average pay:6.50 per hour
10 senior production staff : 8.50 per hour
15 admin staff  : 7.00 per hour
8 senior admin staff: 10.00 per hour
6 managers: 15.00 per hour
1 director: 30.00 per hour
Total average pay: 12.83 per hour

XYZ Ltd employees work on average 40 hours per week.

We are going to calculate the return on investment which XYZ could reasonably expect in the first 12 months after installing our time and attendance system.

OVERPAYMENT
If employees know their attendance is being monitored, overall attendance will generally improve.
It is possible that employees may be overpaid by up to 30 minutes per day due to lateness, early leaving, long lunch breaks etc. Mitrefinch time and attendance system will reduce overpayment.
For salaried employees, a saving will still be seen when employees stay longer at work then their standard hours.

If we assume a conservative 1% increase in attendance, then the following savings could be made each week:
•   Number of Employees:  120
•   Total Hours Per Week:    4800
•   Total Weekly Pay: £61,584.00
•   Hours Gained Weekly: 48.00
•   Savings Per Week:  £615.84

Human Error

With a non-computerised system, there is a potential for human error at each stage of the payroll process. Companies using a manual system are likely to be experiencing an error rate between 1 and 5%. If we assume that we can reduce this by a conservative 0.5%, then the following savings could be made each week.
•   Number of Employees:  120
•   Total Hours Per Week:  4800
•   Total Weekly Pay:  £61,584.00
•   Rate of Human Error Per Week:  0.5%
•   Savings Per Week:  £307.92

Administration Costs

On average it is estimated to take up to 7 minutes for managers to manually calculate and edit each time sheet, and a further 2 minutes to manually enter data from each time sheet into a payroll application. Mitrefinch Time and Attendance eliminates the need for this to be performed.
If we assume a conservative 5 minutes per time sheet for the calculation and data entry process, then the following savings could be made each week.
•   Number of Employees:  120
•   Calculation and Entry (hours):  10
•   Savings Per Week:   £128.30

Conclusion
Based on these figures, installing a Mitrefinch Time and Attendance system could save XYZ Ltd £1,052.06 each week. This equates to an estimated capital recovery of £54,707.12 per year!
How much you could save? Try our Return on Investment calculator today and persuade your boss!

For more info visit http://www.mitrefinch.co.uk

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We are a leading developer and provider of employee management solutions with branches in Canada, Australia and the UK. We serve over 2500 clients from all business sectors. Our core products are: Time and Attendance, Performance Management, HR Management, Payroll, Access Control, Fire Evacuation, Identity Cards

www.mitrefinch.co.uk