Three Pain Points of Manual Timekeeping
Is 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.