In this challenging economic environment, one of the best ways to control the cost of doing business is to control your cost of labor. One of the easiest, quickest, most cost effective ways to control your cost of labor is to automate your time and attendance systems. Automating your time and attendance tracking system can provide your business with a minimum 100% annual return on investment, if not more. There is no other more affordable, cost effective investment you can make in your business that can provide you with that kind of return!
As you know, your cost of labor is an important part of your cost of doing business. Manufacturers in general have a labor cost of 15% or more. Service companies can have a labor costs of 35% or more. Any methods you can implement to control this significant cost item can have a considerable impact on your bottom line.
Manual timekeeping systems are fraught with inefficiencies. If your employees write in their times on a time sheet, odds are, any discrepancies between actual time and the time recorded on the sheet will favor the employee. (For example, if your employee shows up at 8:05, there is a very good possibility that he will write down 8:00 if he feels he can get away with it.) Then you have to add up the time sheets to calculate hours worked. A punch time clock takes away the employees ability to “fudge” their time, but you still have to add up hours worked and then calculate payroll. According to numerous public and private studies, employees will be overpaid 1 to 8% of their annual wages due to errors in calculating hours worked. Just 5 minutes a day (1%) of fudged time is costing your company more than you think. Check out this table. The numbers will surprise you!
In the simplest terms, an automated time and attendance system (ATA) system takes away all the subjectivity of tracking employee hours at work and eliminates all the calculating errors. So how do you get 100%+ ROI on our ATA system? Assume you have 10 employees and you are manually tracking their time at work. Their average wage is $9.50/hr. Looking the the “Just 5 Minutes” table, a very conservative .5% error rate (just 2.5 minutes a day!) is costing your company $1020 a year! Time & Pay’s ATA system will eliminate that error rate and cost you only $330 a year! That means Time & Pay’s ATA system will save your business $690 a year, a 200% ROI!!
Not only will our ATA systems help reduce labor costs, but Time & Pay’s systems can do so much more for your business! It will:
- Eliminate all the work involved in calculating hours worked.
- Help you control overtime costs by allowing you to monitor and manage employees who are approaching OT.
- At the same time, our ATA system will help ensure you are FLSA compliant eliminating expensive penalties.
- Provide you with the capabilities to define where your labor costs are occurring.
- Provide you with the systems you need to track and manage absenteeism.
- Provide you systems to track, monitor and accrue PTO, sick and vacation hours eliminating the need for multiple tracking data bases
- And much more!
Another great aspect of our ATA system is that it is so easy and affordable to implement. All our systems are web based so there is no expensive equipment to buy, no expensive software to purchase or maintain, and easily expandable both within your facility or in multiple locations. You let us know that you are ready to better manage your labor and start saving money, and we can have you set up in a matter of days!
As you can see, if you have not looked at an automated timekeeping system and all the benefits it can generate for your business, you need to do so. You can visit our ATA pages on our web site to learn more. Give us a call and we would be glad to learn about your situation and let you judge for yourself if our ATA system will be right for your business. It costs you nothing to make the call and there is no obligation. We assume that if we can’t save you money and help you better control and define your labor costs, you probably do not want to do business with us. We fully understand that. We just want to give you the opportunity to look at a way to save your company money. In this economic environment, you need all the help you can get.