It will come as no surprise that we are firm advocates of using time and attendance systems in practically every workplace. We do feel though that the return on investment speaks for itself, with customers reporting the system paying for itself in less than six months. This article looks at some of the less obvious, hidden costs of not using an automated time and attendance system.
Time and attendance systems with Focus Software
It happens. Studies have shown 80% of employees admit to some form of time theft, including ‘fudging’ the numbers on manual timesheets, taking long lunches or claiming to ‘work through’ breaks while actually taking them. Unfortunately for business managers, time theft is extremely common.
Suppose for convenience that you employ 50 people and pay each of them £15 per hour. Further suppose that each day each employee fudges the system by five minutes. Maybe they got in a few minutes past the hour, or took a little extra at lunch, or nipped off early. That’s £16,250 per year, A Time and Attendance system would make this loss vanish in an instant.
That’s not to say the end goal of a time and attendance system is simply to pay your employees for the time they work. What you actually want to do is have your employees work for the time they are contracted to, which brings us to…
Casual Attitude to Attendance
Empower your employees to track their attendance with proper, accurate and automated record keeping. Our clients report that bad habits that may have developed slowly over years suddenly become a thing of the past. With an automated time and attendance system you are creating a completely fair, transparent and actionable set of data to ensure that you have the staff resources in place when and where you want them. No more missed phone calls at a minute past nine or failed deliveries at a few minutes to five!
The vast majority of modern time and attendance systems, including Focus, will offer you a one click export of your data to whichever payroll package you use. Compare this to the manual entry of timecards or sheets. Not only are you using the valuable time of your payroll team, but you are allowing for human error.
Suppose you run a pretty tight ship. Each manual timesheet only takes your payroll team five minutes to check and enter into the system. And they’re pretty good too – despite the industry average error rating of 1-8% your team achieve an impressive 1% error rating.
A 1% margin of error could cost this fictitious company of ours £15,600 pounds per year in salary over-payments.
With the example of 50 employees being paid weekly, that means more than 200 hours per year spent by your payroll team on simple data entry. With this hypothetical company’s base wage rate of £15 per hour that’s another £3,000 that could be better spent elsewhere – maybe chasing late payers and improving cash flow.
All employers must be aware of the latest legislation related to working hours, practices and conditions. An automated time and attendance system can help to keep you on top of this – before it becomes a problem. Working Time Regulations, for example, can be tracked weekly with alerts created if employees are in danger of exceeding working limits. This allows you to be proactive rather than reactive.
Identify Wastage and Opportunity
Time and Attendance systems can make you more efficient – beyond time and payroll. Assign employees to specific areas or jobs, then feed in production data. What you have then is the value of all that time. With Focus, employees can assign themselves to various different jobs throughout the day, giving you a minute-accurate breakdown of what your wage bill is getting you.
Have you ever found yourself asking with exasperation: “Why did nobody tell me?”
With pen and paper time and attendance, or with no formal system at all, employers can find themselves reacting to circumstances.
A supervisor may not think it worth mentioning that two staff phoned in sick this morning, while had you known you could have transferred the extras from another department, knowing that the other department was overstaffed.
With Focus Attendance Board you can see live data of your workforce across multiple sites. You can have alerts trigger if branches or departments are below their required staffing levels and can act immediately to redistribute resources. You are aware, informed, and in control.
What Are You Waiting For?
The savings we’ve outlined in the article total £34,850 per year.
Time and attendance systems save money. They create a more efficient, open and informed workforce. They make administration a breeze. They give control to you.
Get in touch today and let us talk to you about our systems and solutions, and let us help give you Focus.