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ExecuTime’s time and attendance software increases efficiency by
reducing processing time for paid personnel and decreases errors
from manual data input. Streamlining your company’s processing time
cuts out unnecessary costs and can deliver a ROI in as little as two
months.
Return On Investment (ROI) Analysis Example
Identify Your Potential Savings with ExecuTime™ Time & Attendance
A typical 200-employee company has a four-million dollar payroll.
The potential savings generated by automating time & attendance
operations adds as much as $¼ million to your bottom line! This
6.875% labor savings is based on a study performed by the American
Payroll Association and Robert Half in calculation, lost time and
error factors alone. The additional benefit of better management
decisions based on accurate labor information, and automatic exports
to payroll are more difficult to place a value on
|
Savings Factor |
50 Employees |
100 Employees |
250 Employees |
500 Employees |
1000 Employees |
|
Calculation |
$3,900 |
$7,800 |
$19,500 |
$39,000 |
$78,000 |
|
Lost Time |
$52,000 |
$104,000 |
$260,000 |
$520,000 |
$1,040,000 |
|
Human Error |
$15,600 |
$31,200 |
$78,000 |
$156,000 |
$312,000 |
|
|
|
|
|
|
|
|
TOTAL |
$71,500 |
$143,000 |
$357,500 |
$715,000 |
$1,430,000 |
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1.
Manual Calculation Factor
It is estimated it takes a bookkeeper approximately 7 minutes to
manually add up time sheets, calculate overtime and enter data. Add
to this the time spent correcting time and leave errors, and
transferring data to your payroll program or telephoning your
payroll service bureau. ExecuTime could save you at least six hours
of time per employee each year, which calculates to over $15,000 per
year for a 200-employee company.
2. Lost Time
Factor
Studies have shown the average employee is overpaid for 4 hours and
5 minutes of unauthorized or unearned time each week (late breaks,
tardiness, early departure). Assuming automation reduces "lost time"
by 24 minutes per day - that's two hours each week, ExecuTime could
save your 200-employee company over $200,000 per year.
3. Human Error
Factor
Studies have shown payroll error factors to be between 1% and 8% of
total payroll and include accuracy in reading time sheets,
transposing numbers, rounding and calculation errors. Assume your
error factor is minimal, approximately 1% of payroll, you lose
$62,400 each year in a 200-employee company.
Total Savings
The above factors show a $286,000 per year savings for a
200-employee company.
*The
above numbers are based on a company with employees earning an
average of $10.00 per hour, with department heads earning $15.00 per
hour.
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