Cost of Exaggerated Time – $1,461.12
In a Software Advice survey, 43 percent of employees admit to time theft through exaggerating their times on time cards and 25 percent submit more hours than they really worked 76 to 100 percent of the time. Based on that survey the average employee exaggerates their time by 22 minutes per shift. With 10 employees working at a minimum of $10 per hour 250 days in a year, exaggerating time on shifts by even a few minutes adds up fast. The number above is the minimum cost paid by an employer each year for exaggerated employee times in this scenario.
You can use this free time theft calculator to get an estimate for how much employee time theft is costing you.
Wasted Time Calculating Employee Time Cards – $715.00
If a payroll manager working at an average of $30 per hour spends five to six minutes on each time card for 10 employees, this adds a minimum of $715 to your annual expenses. And this is only time spent calculating the time cards. In addition to these payroll costs, human error can cost up to 8 percent of your gross payroll according to the American Payroll Association (APA).
A Nucleus study of automating time keeping showed that when a form of automated timekeeping is purchased, elimination of payroll errors easily pays for the automated system. Many of those payroll errors start when an employee comes in to punch a paper card or write down their time. Misread handwriting, mistyped numbers, or deliberately rounded time in the employee’s favor happens and when it does, your payroll costs increase.
Automated Employee Time Tracking
Multiple options exist to accurately track your employees’ times. There are better ways to keep track of time than paper cards, ranging from biometric systems to badge readers and from web based to on premise solutions. Many automatic time tracking devices such as biometric or badge reading equipment often range between $450 and $6,000 depending on the equipment and system purchased. Software solutions are usually more affordable for small to medium sized businesses. Time and attendance software typically tracks and manages employee schedules, tracks employee hours, and monitors sick, vacation, and paid time off.
There are hundreds of time keeping software solutions. When looking for the best solution for your company, key things to consider are: is it accurate and does it offer a secure, easy-to-use method of tracking time? The best choices for your company fit your budget, are intuitive for managers and employees to use, and reliable in the tracking and generating of time on reports. For many companies, a solution like TimeClick, a time tracking system used by over 6,000 small to medium sized businesses, is the most beneficial method for keeping their employee times. Starting at only $99 as a one-time payment for the software, TimeClick easily and accurately tracks employee times. As a way to prevent and end time theft and save thousands of dollars of your gross annual payroll costs, companies like TimeClick are always eager to help you improve your business function.
Simple clocking in and out processes allow your employees to focus on what is most important in their jobs. Simple payroll steps allow you to spend precious time on other matters improving your business. If you are looking for a reliable, affordable software solution, contact InfoServ today to get started on your way to bettering your time tracking.