Time and Attendance systems help businesses save money in the following key areas.
Accurate Hours worked
Reduced Admin Time
Reduced Payroll Errors
to name a few
For a typical 100 Employee business, these changes can add up to significant savings.
Lets look at the following example
Total Cost of Weekly Payroll - £37,000.00
Total Monthly Payroll - £160,580.00
Total Annual Payroll - £1,926,960.00
On average, a business should save between 1-5% per annum on their wage bill thats potentially an incredible £96,348.00 a year!
Sounds too high, too much, well let's break it down and look at a typical week/month and year.
If conservatively 5% of your workforce is late each day by 15 minutes and you pay that lateness when no work has been done. Thats 1hr and 15 minutes each day being paid. Equalling £12.5 a day. 260 working days in a year that is £3,262.00 a year.
With an automated Time Management system feeding Payroll the contract rules, rounding rules, late logic, hourly pay rates, overtime logic, paid sick, absence and holiday entitlement etc This is now all automated and applied systematically by a computer, leaving no room for human error.
If we assume a 3% error rate each month on your payroll run thats £4,817 a month in potential overpayment. Or £57,808.00 a year
Payroll Admin time
On average studies have shown, it takes an admin person 4 days to prepare a 100 employee payroll run each month, including queries new starters and preparation of data. Thats £296.00 a month in labour time to prepare payroll or £3,552.00 a year.
Summarised thats a total of £64,622.00 every year in wasted time and errors.
Return on Investment
Now for a typical 100 Employee business with a handful of system users and a couple of clocking terminals. Chronicle will cost between £6,000-10,000 to buy and around £1,000 a year to support and maintain.
Meaning your breakeven is within the first 4 months of purchasing a system.
Not to mention a nominal relative figure a year to support and maintain.
One last thing to mull over is how many clients / orders / parts etc would you have to win or make to increase the bottom line by 64K a year? How much increased turnover is required?
Introducing a time and attendance system is one of the simplest quickest and most efficient ways to control your biggest cost as a business and significantly improve your companies profitability.
For more information and a demonstration of how Chronicle work contact us via phone or email.