Time and Money Lost With Manual Time and Attendance Systems

A typical 200-employee company has a2. Lost Time Factor Studies have shown the
four-million dollar payroll. The potential savingsaverage employee is overpaid for 4 hours and 5
generated by automating time and attendanceminutes of unauthorized or unearned time each
operations adds as much as a quarter of a millionweek (late breaks, tardiness, early departure).
dollars to your bottom line! This 6.875 percentAssuming automation reduces "lost time" by 24
labor savings is based on a study performed byminutes per day - that's two hours each week,
the American Payroll Association and Robert HalfExecuTime could save your 200-employee
in calculation, lost time and error factors alone.company over $200,000 per year.
The additional benefit of better management3. Human Error Factor Studies have shown payroll
decisions based on accurate labor information anderror factors to be between 1% and 8% of total
automatic exports to payroll are more difficult topayroll and include accuracy in reading time
place a value on.sheets, transposing numbers, rounding and
Several factors go into the loss of money fromcalculation errors. Assume your error factor is
loss of time.minimal, approximately 1 percent of payroll, you
1. Manual Calculation Factor It is estimated it takeslose $62,400 each year in a 200-employee
a bookkeeper approximately 7 minutes tocompany.
manually add up time sheets, calculate overtimeTotal Savings The above factors show a
and enter data. Add to this the time spent$286,000 per year savings for a 200-employee
correcting time and leave errors, and transferringcompany.
data to your payroll program or telephoning your*The above numbers are based on a company
payroll service bureau. ExecuTime could save youwith employees earning an average of $10.00 per
at least six hours of time per employee eachhour, with department heads earning $15.00 per
year, which calculates to over $15,000 per yearhour.
for a 200-employee company.