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Manual vs. Automated Timekeeping
Staying competitive today requires companies to find new ways to drive revenues and profitability. One of your most significant expenses is your labor cost; however, it is also one that is most easily controlled. If you are not currently tracking your dollars and labor minutes you're likely paying thousands extra in unnecessary wages.
The American Payroll Association (APA) has declared numerous ways in which companies are hurting their profitability by not implementing today's automated timekeeping technology. The following are three key areas your company could reduce costs with automated timekeeping:
Key Area # 1 - Wasted Labor Minutes
Did you know that just 15 employees receiving pay for merely 4 minutes of "wasted" time per day [untracked breaks, extended lunches, over-approximated punch times, etc.] will total 1,380 minutes [23 hours] of additional pay per month?
The Cost: If your average pay rate is $10 per hour, then you pay an extra $230 each month for labor worked.
Key Area # 2 - Human Error
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.
Key Area # 3 - Manual Time Card Preparation
The average payroll clerk spends 7 minutes per time card each pay period managing the following tasks:
- Preparing and handling time cards
- Verifying time card totals
- Reconstructing lost or damaged time cards
- Computing time card totals
- Computing shift and department totals
The Cost: Preparing 100 time cards will take an estimated 11.67 hours to complete. Therefore, at an average clerical wage of $15 per hour, time card preparation would cost $175.05 per pay period.
The Solid Business Solutions automated timekeeping technology provides a broad range of timekeeping features and is a valuable resource as it is able to eliminate these costs, and save you significant amounts of time.
To learn more about Solid Business Solutions time and attendance solutions for your business or to speak with a representative, contact us today at (888) 762-2075 or complete our online quote request form above.