- Are you using a manual process to track your employees’ work hours?
- Have you ever experienced “buddy punching” and time theft?
- Do you have complete confidence in the payroll accuracy at your company?
The American Payroll Association (APA) conducted a study about typical human error factor when manually calculating payroll. According to the results published in Paytech, the overpayment due to human error can range from 1% to 8%. If you multiply that amount by each paycheck and each pay period, you may be losing an extraordinary amount of money without ever realizing it. However, the APA also states that, by adopting an automated time and attendance system, companies can generally save up to 4% of their annual payroll expense.
Here are some things to keep in mind when choosing a new system:
- Cost: Usually the deciding factor in choosing a system- beware of hidden costs and remember, generally, you get what you pay for. It is recommended to use your projected annual savings as a starting budget.
- Features & Capabilities: Identify your “needs” vs. your “wants” and realize that most systems will all have certain basic functionalities– storing employee information, recording time punches, and managing time off.
- Potential Savings of a Time & Attendance System: Reduce time card audit expenses, eliminate wages paid to employees taking long breaks or lunches or showing up late, and eliminating human error and fraud.
In order to reduce the high price of human error when it comes to recording time worked by employees, consider adopting an automated time keeping system. However, remember to thoroughly research your options and consider not only the features, but also the potential costs and savings of that particular product.
Click here for a white paper that covers 7 Selection Factors For Time & Attendance Software
Please let us know in the comments below what your experience has been with your search for a Time keeping system! We’d love to hear from you!
Photo Credit: Bernard Polet/much ado about nothing