Payroll is probably one of the most expensive costs for business today
According to Second Wind Consultants, an average successful business payroll is 15 to 30 percent of your gross revenue. If you are in the service industry, your payroll costs could encompass more than 50 percent of your gross revenue. Because of this, it is important to manage payroll costs whenever possible. How can you save money in payroll without cutting wages?
Let’s look at a very common scenario
Your employees could be driving payroll costs up without knowing it. Time theft, even unintentional time theft, can be a big drain on the bottom line.
You have a good group of employees. They are a very conscientious group and always show up early for work to get their coffee or snack before work starts. They enter the building 10 minutes early and clock in. They go to the break room and get coffee, read the news or just spend some time talking with each other. Then they make their way to their workplace and begin the day. Ten minutes doesn’t sound too bad, does it? But it does all add up.
Let’s say you have 50 employees that do that every day, which is 8.33 hours a day. If you are open five days a week, that is 41.50 hours a week or 2,165.80 hours a year for coffee, news and chit chat. Let’s also say that the average rate for these workers is 15.00 per hour.
That is an annual loss of $32,487.00. This does not include the overtime that the 10 minutes could be causing. These numbers are based on the national average according to the American Payroll Association.
How can you stop this from happening
Well, you could implement procedures that could be very restrictive to your employees, upsetting their normal process. This could turn a good group of workers into a begrudging group of workers with less productivity and possible loss of staff.
Or you can use Punch Overrides built into On-Time Web
Punch Overrides simply overrides the time entry and sets it to the official start time. It can also be used for Lunch, Break and Out punches. In the scenario above, if you set the On-Time Web Punch Overrides 20 minutes before the actual start time and have it override the punches to be the official start time you save $32,500.00 in payroll.
On-Time Web Punch Overrides can be set globally, meaning company-wide, as well as by supervisor group or by the individual. This gives you full control of your official paid work times. You can set up as many Punch Overrides as you need, so if you have multiple shifts or flex shifts it won’t be a problem.
Find out more…
If you would like to find out more about On-Time Web and how it can save you money please check out our On-Time Web site at www.on-timeweb.com. Be sure to go to our Savings Calculator to see how much money you can save with On-Time Web.