Manual Timekeeping Pain Points

By December 9, 2015Blog

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.

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