Automated Time and Attendance System Guarantees Potential Savings
Posted on July 28, 2014
Thinking of purchasing an automated time and attendance tracking system but confused, this article will guide through in making the best decision! A lot of confusion and stress is involved when one decides to upgrade from manual time and attendance processes to an automated one. The reason behind is uncertainty, having a clear picture regarding the automated systems, various options, features and the purchase criteria involved will ease the process and make one confident. There are several factors to determine the potential savings which can be achieved by implementing the time tracking system in the workplace.
The very first step is to evaluate the existing employee tracking situation and identifying different areas of improvement. While examining the process, it is important to look for indications of inefficiencies, redundant data entry and data entry errors, high administrative costs, employee and/or manager dissatisfaction of the process and unacceptable error rates in payroll. Very simple assessment like whether to increase savings by reducing the payroll processing time and labor costs or by eliminating unauthorized overtime and buddy punching or by decreasing payroll errors and reporting time or deciding to have an off-site access to time and attendance data can guide through in the review process.
The surprising factor is by controlling each of these factors one can increase savings, one very big reason why automated time tracking system is important and effective. If any of the core issues discussed above are noticed in the manual or traditional time tracking system, there is high probability of reaping benefits from an automated time tracking system. Many businesses have noticed an immediate Return on Investment after upgrading their time and attendance system. The integration of time and attendance solution will immediately benefit these three areas:
1. Reduce Wasted Time: A considerable amount of money can be saved by eliminating the need of manual calculation and by reducing the time required to verify the accuracy of paper time cards. Studies reveal that around 6 minutes is spent by a payroll employee to calculate the data on a time card.
2. No Over-Payment: A company or business suffers greatly due to late arrival, long lunches and early leaving of employees. Traditional attendance system promotes such costly activities. Studies reveal that an average weekly ‘theft’ involved in manual time and attendance system is around 4 hours and 5 minutes per employee!
3. No Space for Human Error: Study reveals that there exists an error rate of 1-8 % of total payroll in companies that use traditional time cards. This contributes to a huge loss and can be eliminated by using automated time and attendance system.
Tracking of employee time has the potential to save valuable revenue and to increase the business bottom line. Solutions like Employee Management System automate the payroll process and the Cloud-connected software enables its users to retrieve and access work hour data from any place and at any time. With affordable initial investment and scalable monthly contract, a company can easily save huge from an automated time and attendance tracking system.