What ROI can you expect to achieve by implementing a Time and Attendance System?

What ROI can you expect to achieve by implementing a Time and Attendance System? from Mitrefinch Australia

By: Mitrefinch Australia  24-Feb-2011
Keywords: Human Resource Management, People Management, Workforce Management

So you have identified a need within your organisation for an .

You've done a Google search, trawled various websites, downloaded many articles and whitepapers, or watched some online videos.

By now, you can probably list an array of Time and Attendance vendors and the features of their systems. But in reality when it comes to presenting your case to senior management, there will be one thing which will matter most to them - how much time, money, and effort can the organisation look to save by rolling out aTime and Attendance system?

To gain a better understanding of the return on investment (ROI) an organisation could expect to achieve by implementing a high quality Time and Attendance system, take a look at the sample below:

Company ABC Pty Ltd is a Meat Processing facility with 120 employees working on average 40 hours per week.

Average Pay Per Hour
80 Floor Staff: $20 p/h
10 Senior Floor Staff: $22 p/h
15 Administration Staff: $23 p/h
8 Senior Administration Staff: $25 p/h
6 Line Managers: $30 p/h
1 Director: $40 p/h
Total Average Pay: $26.66 p/h

Now, we will calculate the ROI that ABC Pty Ltd could reasonably expect in the first 12 months after installing an computerised Time and Attendance system.

This is based on the premise that the implementation of the Time and Attendance system will consequently reduce overpayment, human error, and associated administration costs.

OVERPAYMENT
It is possible that employees may be overpaid by up to 30 minutes per day due to lateness, early leaving, long lunch breaks etc.

A good Time and Attendance system will significantly reduce overpayment. Once employees know that their attendance, start/finish times, and breaks are being monitored, overall attendance and punctuality will generally improve.

If we assume a conservative 1% increase in attendance, then the following savings could be made each week:

Number of Employees: 120
Total Hours Per Week: 4800
Total Weekly Pay: $127,968.00
Hours Gained Weekly: 48.00
SAVINGS PER WEEK: $1,279.68

While this is good and well for workers paid an hourly rate, what about salaried employees?

In our experience we have found that even organisations with salaried staff can benefit from tracking employee time and attendance. For example cost savings will still occur when employees stay at work over their standard hours, plus management can view detailed attendance and absenteeism reports, enabling them to identify potential problem areas before they get out of hand and effect your bottom line or production cycle.

HUMAN ERROR
With a manual punch card or timesheet system, there is greater potential for human error at each stage of the payroll process. Companies using a manual system are likely to be experiencing an error rate between 1 and 5%.

If we assume a Time and Attendance system can reduce this by a conservative 0.5%, then the following savings could be made each week.

Number of Employees: 120
Total Hours Per Week: 4800
Total Weekly Pay: $127,968.00
Rate of Human Error Weekly: 0.5%
SAVINGS PER WEEK: $639.84

ADMINISTRATION COSTS
On average it is estimated to take up to 7 minutes for Supervisors/Managers to manually calculate and edit each timesheet/clock card, and a further 2 minutes to manually enter data from each timesheet/clock card into a payroll application.


An effective Time and Attendance system will eradicate these time consuming manual tasks, and work seamlessly with your payroll application to remove the double entry of data.

If we assume that a conservative 5 minutes per timesheet/clock card for the calculation and data entry process could be saved, then the following cost savings could be made each week.

Number of Employees: 120
Calculation and Entry (hours): 10
SAVINGS PER WEEK: $266.66

SUMMARY
Based on these calculations, installing an automated Time and Attendance system could save ABC Pty Ltd up to $2,186.18 each week.


This amounts to an estimated annual saving of $113,681.36.

Now, what organisation wouldn’t like to achieve those figures?

Interested in finding out exactly how much your organisation could save? Why not, try the for yourself or contact us on 1300 884 831 to speak to one of our experienced consultants today!


Keywords: Employee Tracking, Human Resource Management, Mobile Time and Attendance, Mobiletms, Payroll and Human Resources Solutions, People Management, People Management Software, Time and Attendance, Time and Attendance Software, Time Clock, Time Clocks, Time Management Systems, Time Recording, Workforce Management,

Contact Mitrefinch Australia

Email

Print this page

Other products and services from Mitrefinch Australia

Time and Attendance Software Systems for Manufacturing from Mitrefinch Australia thumbnail
14-Aug-2013

Time and Attendance Software Systems for Manufacturing

Improve the efficiency of your production staff with Mitrefinch's specialised Workforce Time and Attendance Software


Mitrefinch release latest version of their Employee Time Management System from Mitrefinch Australia thumbnail
08-Feb-2011

Mitrefinch release latest version of their Employee Time Management System

The latest version of Mitrefinch's award winning Time and Attendance System embraces new web and mobile technology to deliver a complete Employee Management Soultion.


Mitrefinch Time and Attendance achieves ISO 14001 Enviroment Accreditation from Mitrefinch Australia thumbnail
18-Jan-2011

Mitrefinch Time and Attendance achieves ISO 14001 Enviroment Accreditation

  Mitrefinch h ave been awarded the prestigious ISO 14001 accreditation, illustrating the organisation’s commitment to improving environmental performance and reducing their overall environmental impact.


Mitrefinch join the NSW Business Chamber from Mitrefinch Australia thumbnail
29-Nov-2010

Mitrefinch join the NSW Business Chamber

Mitrefinch are pleased to announce that they have joined the growing network of NSW Business Chamber members.


Maersk Distribution select Mitrefinch Time and Attendance Software to drive workforce productivity from Mitrefinch Australia thumbnail
04-Nov-2010

Maersk Distribution select Mitrefinch Time and Attendance Software to drive workforce productivity

Maersk Distribution, a subsidary of the world-class shipping organisation Maersk Group, has selected Mitrefinch’s automated Workforce Management solution to monitor employee productivity and absence at their Toronto and Vancouver sites.


Mitrefinch Group look to expand operations to Asia from Mitrefinch Australia thumbnail
11-Oct-2010

Mitrefinch Group look to expand operations to Asia

Mitrefinch, a global leader in the development of intelligent employee management solutions, is looking to expand operations to Asia, having already successfully established their business across the UK and Ireland, North America, Canada and Australia.


Mitrefinch to exhibit at The Association of Payroll Specialists’ Payroll Expo from Mitrefinch Australia thumbnail
05-Oct-2010

Mitrefinch to exhibit at The Association of Payroll Specialists’ Payroll Expo

Come along and see Mitrefinch's Employee Management Solutions in action at the TAPS Payroll Expo


Mitrefinch Employee Time and Attendance Solution cuts Payroll costs for Advance Metal Products from Mitrefinch Australia thumbnail
13-Sep-2010

Mitrefinch Employee Time and Attendance Solution cuts Payroll costs for Advance Metal Products

Advance Metal Products cut annual payroll costs by 1% - 2% by utilising the Mitrefinch Time and Attendance system


Biometric Employee Time and Attendance Technology for the Real World from Mitrefinch Australia thumbnail
30-Aug-2010

Biometric Employee Time and Attendance Technology for the Real World

New biometric Time and Attendance technology side steps the problems encountered by conventional fingerprint readers.


Andrews Meat avail of new Mitrefinch biometric technology to capture accurate time & attendance data from Mitrefinch Australia thumbnail
01-Jul-2010

Andrews Meat avail of new Mitrefinch biometric technology to capture accurate time & attendance data

R eal-time on premises reporting, labour costing reports, employee absentee profiles and online statistics will ensure that potential problems are quickly identified and addressed, allowing for better utilisation of the Andrews Meat workforce.


Mitrefinch take Biometric Time and Attendance to the next level from Mitrefinch Australia thumbnail
18-Jun-2010

Mitrefinch take Biometric Time and Attendance to the next level

As part of a continuing commitment to new product innovation and development, Mitrefinch are pleased to announce that they are now incorporating Lumidigm’s patented multispectral imaging technology into their biometric time and attendance terminals.


Mitrefinch trial new biometrics system at The Balloon Tree Farm Shop from Mitrefinch Australia thumbnail
17-Jun-2010

Mitrefinch trial new biometrics system at The Balloon Tree Farm Shop

Award-winning UK farm shop, The Balloon Tree, is trialing the latest in biometrics technology from Mitrefinch, leaders in Time and Attendance Management.


27-Jan-2010

HR Management Software

From address details to training records, HR Manager allows you to store all your employee records in a standardised, easily accessible format. A single point of data entry gives you confidence in the quality and accuracy of your data, eliminating the need to constantly cross reference different databases and reports. 


27-Jan-2010

Identity Cards

No more expensive outsourcing and wrangling over price and design details.  In-house production of badges saves considerable time and money - and you get what you want, when you want.