Overpayment
If employees know their attendance is being monitored, overall attendance will generally improve. It is possible that employees may be overpaid by up to 30 minutes per day due to lateness, early leaving, long lunch breaks etc. Advance Systems TMS will reduce overpayment. For salaried employees, a saving will still be seen because employees will be working longer for the same overhead. If we assume a conservative 1% increase in attendance, then the following savings could be made each week.
Number of employees: $emp
Total hours per week: $hours
Total weekly pay: $cur$weekPay
Increase in hours per week gained: $increase
Savings per week: $cur$overpayment
Human Error
With a non-computerized system, there is a potential for human error at each stage of the payroll process. Companies using a manual system are likely to be experiencing an error rate between 1 and 5%. If we assume that we can reduce this by a conservative 0.5%, then the following savings could be made each week.
Number of employees: $emp
Total hours per week: $hours
Total weekly pay: $cur$weekPay
Rate of human error per week: 0.5%
Savings per week: $cur$humanError
Administration Costs
On average it is estimated to take up to 7 minutes for managers to manually calculate and edit each time sheet, and a further 2 minutes to manually enter data from each time sheet into a payroll application. Advance Systems TMS removes the need for this to be performed. If we assume a conservative 5 minutes per time sheet for the calculation and data entry process, then the following savings could be made each week.
Number of employees: $emp
Calculation and entry time (hours): $entry
Savings per week: $cur$admin
