Manual Timekeeping Pain Points

Three Pain Points of Manual Timekeeping

manual timekeepingIs your business using manual timekeeping for your employees? Have you thought about converting to an electronic timekeeping solution – but needed a reason to jump in? Here are three manual timekeeping pain points that showcase the costs related to this error-prone system.

1. Erroneous wages paid

The American Payroll Association estimates that the rate of human error in time card preparation is between 1% and 8%.

The Cost:  A conservative 2% human error rate on a $12,000 payroll would equal $240 in erroneous wages paid per pay period.  Moreover, the cost to re-issue correct payroll amounts (if the error is detected and reported) further increases your cost of human error.

2. Employee punch cards

The average payroll clerk spends 7 minutes per time card each pay period:

  • Preparing and handling time cards
  • Verifying time card totals
  • Computing time card totals
  • Computing shift and dept. totals
  • Reconstructing lost/damaged cards

The Cost: Preparing 100 time cards takes an estimated 11.67 hours to complete.  At an average clerical wage of $15.00 per hour, time card preparation would cost $175.05 per pay period.

3. Employee time theft

Did you know that just 15 employees receiving pay for merely 4 minutes of “wasted” time per day [e.g., untracked breaks, extended lunches, over-approximated punch times, etc.] will total 1380 minutes [23 hours] of additional pay per month?

The Cost:  If your average pay rate is $10.00 per hour, then you pay an extra $230.00 each month for labor worked.

Simple and Affordable Timekeeping Solution

PayVision Online’s TimeWorks is an internet-based solution for businesses that want to automate all labor management processes from time and attendance through payroll preparation.

  • Minimizes human error
  • Cuts down on wasted labor time
  • Calculates data in seconds
  • Saves time and money each pay period

To get started, call 214-442-5888 x 100 or Contact Us today.