International Research has identified found that using manual systems for tracking staff hours can have a real financial impact on your business. They identified 4 keys areas:
Companies that use traditional time sheets or punch clocks have a potential error rate of between 1-8% of the total payroll!
The average weekly time creep i.e long lunches. tardiness, early departures, etc. is 4 hours and 5 minutes per employee!
The average loss as a result of "Buddy Punching" is between 2-5% of total payroll in companies that use traditional time cards!
Calculating time sheets, reconciling and keying into payroll can cost an employer approximately 5 minutes per employee being paid.
In addition to the financial benefits of improving the way staff track their hours, there is the increasingly important consideration of compliance which is often overlooked. In recent times we have seen the spotlight being put on employers for their lack of accurate record keeping when it comes to meeting their obligations under:
The Employment Relations Act
The Holidays Act
The Health and Safety in Employment Act
Under these Acts, an employer is required to keep accurate, accessible records of the day’s, hours and pay for each day worked or taken leave. You must also know who is on site at all times and ensure employees are not working excessive/unsafe hours.
We have created a simple calculator to help you work out what your current manual time sheets or punch clock could be costing you. Click on the calculator image to see what saving just 2 minutes per day, per employee would mean to your wage bill.