Are you aware of the monetary benefits your business can receive by implementing a fingerprint time attendance system? Let us assume that you own My Company Ltd and you have recently realised that your company needs a workforce management system.You embark upon your quest for a reliable solution by searching on Google, reading various articles, visiting vendor sites and watching promotional videos on YouTube.
In a short time, you know everything that there is to know about different providers and their system features. However, when it comes to making the decision to implement the solution, you need to have good solid figures to make an informed decision.
Let's face it! While doing your research, you must have heard the sales pitch dozens of times about how a biometric time attendance system can save you loads of money and all the rest of it. However, the number of business owners that can lay claim to actually knowing what difference it can make in terms of return on investment is very low. After all the research, can you honestly claim to know how much difference in terms of money, time, and effort the fingerprint time tracking software would be able to make to your business? Probably not! That is why we have presented some examples below so that you can have a clear picture.
Let us assume that My Company Ltd has 120 employees in the following departments:
80 employees in production department with an average pay of £6.50 per hour10 senior employees in production department at £8.50 per hour15 employees in admin department at £7.00 per hour8 senior employees in admin department at £ 10.00 per hour6 executives at £15.00 per hour1 senior manager at £30.00 per hourThe total average pay would be around £12.83 per hour. Let's say the employees of My Company Ltd work on average 40 hours per week.Now we shall calculate a conservative return on investment in the first 12 months after implementing a fingerprint time attendance system based on the 3 following parameters.
Time Theft
Time theft is a very common phenomenon at the workplace. Let us assume your employees are stealing up to 30 minutes per day by arriving late and leaving early or taking extra long meal breaks.A good biometric time attendance system will easily eradicate time theft from your workplace. Let us take a very conservative figure of 1% increase in time and attendance and see what savings are made each week:
Total Employees: 120Number of Hours per Week: 4800Total Wages Paid Each Week: £61,584.00Number of Hours Gained/Weekly: 48.00Total Savings Each Week: £615.84Human Error
Manual tracking and processing of payroll data involves a considerable potential for human error at various stages of payroll processing. It is estimated that UK businesses experience payroll error costs of between 1 and 5%. However, we shall again take a conservative figure of 0.5% improvement after implementing these systems and see how many savings My Company Ltd makes each week:
Total Employees: 120Number of Hours Per Week: 4800Total Wages Paid Each Week: £61,584.00Human Error Reduced Per Week: 0.5%Total Savings Each Week: £307.92Streamlined Administrative Processes
It can take from 8 to 10 minutes to manually calculate the employee hours and process the data for payroll. By taking a conservative 5 minutes per time sheet, we shall be able to achieve the following savings.
Total Employees: 120Data Entry Time Saved: 10 hoursSavings Per Week: £128.30As is obvious from the above mentioned figures and examples, a quality fingerprint time attendance system would be able to save £1,052 each week for My Company Ltd. This translates into an estimated saving of £54,707 per year after implementing a biometric time attendance system! Now that you know how to calculate return on investment and are aware of the exact savings you can make, order your time tracking software now!
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