Here’s a question I want you to ask yourself:
If you’re not using a good employee time clock software system then the answer to this question may be A LOT! Let’s have a look at the four areas in your employee time clock and timesheet processes that are costing you money.
The Time Taken for Manual Calculations
Any manual timesheet system requires someone in your payroll staff to key in and manually total the timesheet for each and every employee in your organization. Our experience suggests (and industry experts agree with us) that it takes, on average, about 2 minutes to key in and add up a week of time clock information for a single employee. If your payroll staff cost you $25 per hour then you’re looking at a cost of $43 per year per employee just to manually add up your timesheets.
Don’t think that software can save you time? Well, think again. Here’s what Eduardo Nilo had to say about Time Clock MTS:
Time Clock MTS has been a great boon at a great price! We used to spend hours manually calculating everyone’s time logs, based on a manual log book. But Time Clock MTS has done away with the messy and oftentimes illegible log book, and greatly reduced the time required to process our semi-monthly payroll. We wholeheartedly recommend Time Clock MTS!
Potential Savings (running total) : $43 per employee per year
Errors in Manual Calculations
If you’re making manual time clock calculations for your employees then you’re making mistakes. There’s no avoiding it. Mistakes happen whether it be because your employee timesheets are illegible, your payroll staff make keying errors, or sometimes their math is just plain wrong. Conservative estimates suggest that up to 1% of payroll calculations are wrong due to errors in manual calculations. Even if we halve that number (that’s just one error in 200 manual time clock calculations) you’re still looking at a cost of $100 per employee per year due to manual calculation errors. How did I arrive at that number? Well, assuming that the average employee works 2000 hours per year an error rate of 0.5% results in a potential 10 hours of manual calculation errors. At a rate of $10 per hour that’s a cost of $100.
A good employee timeclock system will make things easy for you and stop payroll calculation errors. Here’s what one happy Time Clock MTS user had to say about how our software was helping him:
Potential Savings (running total) : $143 per employee per year
Recovering Stolen Employee Time
Whether you call it time theft, time clock fraud, or simple carelessness your employees WILL over claim their hours worked if you’re using an manual time clock system or manual timesheets. It might be because they get to work late, leave slightly early for lunch, come back slightly late, or deliberately leave late in an effort to claim over-time pay. It can also be simply filling in the wrong times on paper timesheets or time cards. How much time do employees steal whether knowingly or un-knowingly? Some studies suggest it’s up to 4 hours a week (or nearly 10% of your payroll)!
Regardless of how it happens a well implemented time card system will help to eliminate this. Here’s what a user of our time clock system, Time Clock MTS, said when they started using our system:
Your application has been a lifesaver for our small company. We have seen a reduction in weekly hours since we started using the fingerprint scanner.
What sort of savings can software like Time Clock MTS deliver from reduction in stolen employee time? Well, even if it can stop 25% of stolen time you’re looking at up to 50 hours of saved payroll time per employee per year. Or a cost saving $500 per employee per year.
Potential Savings (running total) : $643 per employee per year
Stationery and Consumables Savings
The final area in which employee timecard software will help you save money is through the elimination of the need for time cards and paper timesheets. It’s not a huge saving but even if you bulk buy your time cards from Staples or a similar store you’re still going to spend $5 per employee each and every year on consumables. One company using Time Clock MTS is saving real money on paper and printing costs when compare with their old manual systems. Here’s what they had to say:
About 3 years ago we’ve used manual print time recording machines that used up ink and paper time cards. Since switching to your system, we’ve cut down costs of ink and paper down by around $750+ a year.
Potential Savings (grand total) : $648 per employee per year
Conclusions
So how much money are you wasting not using time clock software? Well it turns out the answer is about $650 PER YEAR PER EMPLOYEE.
The four ways you’re going to save money right now by using time clock software is through the elimination of manual time card calculations, stopping payroll calculation errors, reducing employee time fraud or theft, and by eliminating time card consumables. The cost savings you can expect by improvements in each of these four areas is a quite remarkable $648 per employee per year. This far outweighs the cost of an employee timeclock system such as Time Clock MTS which is just $99 (US) for the single computer edition that can track up to 500 employees.
There’s a no-obligation fully functional 30 day trial available, so why not give our time clock software a try and start saving money today!
