How Much Time Will You Save using Time Clock MTS?

 Time Clock MTS

Time Clock MTS

One of the key claims that we (and other time clock vendors) make is that making use of a an employee attendance system like Time Clock MTS (see the image above) will save you time and money. My contention is that these savings are dependent on HOW you use your time clock system and what time clock system you use. Choosing the best software in the world and then implementing it horribly is probably only going to save your company money if you were previously recording your timesheets onto stone tablets with a chisel. Similarly, choosing a terrible system will prevent you from ever implementing it well, will lead to resistance to using it from employees, and you’ll most likely have wasted your time and money even getting started. But, let’s assume you have picked a great attendance system and you have integrated it into your business well, how much money can you expect to save? Before we get there, it’s worth taking a look at the two steps you need to complete first.

Picking the Right System

Choosing the right time clock system is the first step in the process. If the right system (or very close to the right system) isn’t chosen then getting it to work in your business is going to be like trying to walk in shoes that are two sizes too small. Sure, you’ll be able to do it but no-one will be comfortable. So how do you pick the right attendance system? I’ve written about this process before but it’s worth summarizing. There’s five key things to evaluate:

  • Technical and software compatibility with your computer systems.
  • Cost and availability of on-going technical support.
  • Do the features of the time clock system match your payroll requirements.
  • How easy is the time clock system to use?
  • Do the reporting capabilities of the system match your requirements?

Once you have spent time on each of those five key points then you’re going to be well down the path of picking the right software for your company. Don’t forget, to take advantage of free time clock software trials when you’re performing your evaluation. There’s nothing better to give you an idea of how well you can work with an employee attendance system than living with it for a few weeks.

Implementing Your Time Clock System

If you’re going to realize your full time clock system savings then implementation is key. And I don’t mean technical implementation, I mean correct implementation into the human side of your business. Firstly, you’re going to need buy-in to the new system from three key stake-holders. Management, employees, and payroll or HR staff. Without management support you’re going to be unable to enforce time clock policies effectively on employees. If employees do not buy-in to the system then you’re going to have a weekly and daily struggle to collect attendance data and employees will go out of their way to pick holes in your carefully chosen software. And finally, the HR or payroll staff need to LOVE the time clock software. They are the ones who are set to benefit most from the system so they should be key members of your implementation team. Addressing the issues of these three stakeholders is worthy of an entire article by itself but here’s 5 things you should consider to ensure that you get buy-in from each.

  • Ensure that your time clock policies are complete but not onerous. You want 100% coverage when you’re collecting time punches so make sure your software is EASY TO USE or employees won’t use it.
  • Make sure the system can output data to the payroll system that your HR staff use. Make sure the process is easy to understand and quick.
  • Make sure reports are comprehensive and in the formats that your payroll staff need.
  • Make sure you implement security procedures that prevent employee time clock fraud. If your system is getting ripped off by employees your management is not going to be happy.
  • On-going support costs should be minimal. Not just direct out-goings to the support staff of your time clock vendor, but in terms of costs required to maintain your technology systems to keep your time clock software running.

A Great Attendance System Implemented Well Saves How Much?

I’ve lead you here through the process of choosing the right time clock system and implementing it well. How much will your new system save you? Basically you’re going to save money in reduction in time for data collection and calculations, removal of costs due to errors in calculations, elimination of time clock fraud, and reduction in stationery and consumable costs. I’ve said previously that time clock savings could amount to $650 per employee per year, a number that is based on real feedback from actual Time Clock MTS users. But it’s not just me saying that, I have found an interesting news article on The Globe and Mail entitled The Paper Time Card Checks Out. In it, Jeff Bowen, the director of Bowen Workforce Solutions describes their homespun computer time clock system called Adapt V11 which has allowed his payroll department to halve in size despite the volume of business doubling. Here’s what he said:

The biggest win that we had was time sheets. Before the advent of Adapt, time sheets came in on paper and were input into a payroll system manually. Now, instead of having clerical individuals running payroll, we’ve been able to upscale to people who actually provide payroll experience knowledge and can provide feedback, like, ‘Are we following payroll standards? Are we doing overtime calculations properly?’
It’s interesting to note that he attributes a lot of this saving to pushing the work of data collection away from the payroll staff onto the employees. So how does this save time? Remember, in a manual time and attendance system the employee records the data and then payroll staff need to interpret it, and then enter it into their payroll systems. Or more often, the employee DOESN’T record the data and the payroll staff need to chase the employee for their timesheet. Or EVEN MORE often, the employee records the data, the payroll staff cannot read the timesheet and either waste their time chasing the employee for clarification or just enter the time punches incorrectly. In all three cases it’s easy to see that the work load on payroll and HR staff is significantly less and where a time clock system is going to save any business real time, and of course, real money. So there you have it. I’ve said previously that you can save upwards of $650 per employee per year if you’re using the right timeclock system in the correct manner. And here’s a real user of a real system who has halved the size of his payroll department despite a doubling in volume of his business. An improvement he credits primarily to his internal computer time clock system. Surely a vote of confidence. If you’re not using a system like Time Clock MTS you have to ask yourself why not? You could be missing out on real savings in your business just because you’re not willing to take the first step, and download the free 30 day trial.

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