Surveys by leading organizations have consistently revealed that a large majority of organizations do not use any form of time and attendance to track employee hours. When you consider that labour is the largest expense for most organizations, this statistic leaves one to wonder why?
A company using a manual time sheet has to contend with the following:
- Employees punching in/out for each other-Buddy Punching
- Employees taking an extra 5 minutes for lunch
- Arriving 5-10 minutes late once or twice a week
- Manual calculation and keying of employees hours into a payroll software
Now it’s important to note that these studies revealed those using antiquated punch clocks, manual time sheets or “the honour system” included companies of various sizes. Theses companies ranged in size between 40-2000 employees. This is a staggering number when you consider the following benefits:
A time and attendance software will reduce the cost associated with creating and distributing paper timesheets. Cost savings result from:
- Direct savings from reduced paper, printing, and distribution costs
- Indirect savings from time spent handling paper timesheets
- Elimination of duplicate data entry
- History of dates when time off was taken
- Fewer paycheque corrections
- Fewer inquires to HR or payroll departments
- Reduce the different levels of paper base tracking
How many employees complain if they get overpaid? If even a small number of employees keep their overpayments, it is costing plenty. And when employees get underpaid and complain, issuing a new pay cheque or adjustment is costly.
Without accurate information, you lose the ability to perform useful decision support. Pay is the biggest controllable expense in most organizations. You should have accurate information about hours worked, departments worked in, etc. for your decision support.
ATS customized time and attendance solutions help companies improve efficiency and reduce costs. To learn more about deploying a time and attendance system at your organization go to our website.