What is the real cost or what is the bottom line? These questions are very often asked by consumers when they want to know what is missing, or what is the final amount. Or what is it really going to cost me to purchase or use the product?
We want to be very clear about On-Time Web. That is why we have created a pricing calculator on our website. It will help you know what the real cost of On-Time Web. You can click here to see the real cost of On-Time Web.
BUT Very few people ask what is the real cost for NOT using On-Time Web. We want to answer that question too. What is the real cost of not using On-Time Web?
Let’s take a look at three areas where you are losing money by not using On-Time Web.
The real cost of inefficiency
Let’s look at the time it takes to use time punch cards. Let’s look at just the time it takes to review and total each time card. According to the American Payroll Association (APA) an HR professional will take, on average, between 5 to 6 minutes to total and audit each time card.
Let’s list the tasks that need to happen for every timecard.
- Account for every time card Verify all punches are complete.
- Track down missing time punches and determine if the time was missing or if it was time scheduled off.
- Verify that all punches are within the proper scheduled work time and report late and early punches.
- Calculate the time on the time card along with any additional time that should be accounted for such as sick time, vacation time and holiday pay etc. enter the total times into the payroll software.
It is easy to see how this could often take more than 5 or 6 minutes per time card on average.
Real cost of time theft
Now let’s talk about time theft. This happens right under the noses of employers everwhere. It happens so often that it goes unnoticed, but the cost can be staggering.
The APA estimates that the average employee takes about 10 minutes a day by being tardy, leaving early and taking lengthy breaks. Are you starting to run some numbers in your head? Think about it, if you have 100 employees that is easily 250,000 minutes a year that is being stolen from you.
Real cost of mathmatical errors
When working with time cards it is certain that there will be times that the math will be incorrect. As good as your HR staff is, they are human and can still make mistakes.
The APA has determined that average clerical errors rate is 1% and 8%. When you discover the errors, you will also have to calculate the time it takes to go back and correct the error.
Although we can’t put a monitary value to this but you must also think about the damage this can do your employees financial well being and the moral of the workforce.
Let’s take a look at some numbers now as an example:
Pay Periods per year Weekly (52)
Number of Employees 100
Hourly Wages of your Payroll Staff $30.00
Hourly Employees Average Wage $18.00
Number of Hours in your Work Week 40
Number of Work Weeks per Year 50
Time Spent Adding and Auditing Time Cards 5 Minutes per Time Card
Time Theft Per Employee per Day 5 Minutes
Clerical Error Rate 2%
Based on these numbers:
Cost of Inefficiency of HR Staff Staff spends 433.33 hours Calculating Time Cards or $12,999.90
On-Time Web eliminates this process so your HR staff can do more important tasks.
Cost of Employee Time Theft 1,250 hours ($22,500.00)
On-Time Web accurately records arrival and departure time reducing time theft. We assume a conservative reduction of 50% per employee.
Cost of Clerical Errors Annual Gross Payroll $3,600,000.00
Clerical Errors at 2% for a total of $72,000.00
On-Time Web practically eliminates clerical errors because it autmatically does the calculating for you.
TOTAL COST OF NOT USING ON-TIME WEB $107,499.90 ANNUALLY!
Now you can run your own numbers through our Savings Calculator (click here). Enter your own real numbers and amounts and discover how much it is costing you to NOT use On-Time Web.
Click here to sign up for a 14-day free trial of On-Time Web and start saving.