Time and Attendance Software ROI – Cost Calculation

In our previous article, Time and Attendance Software ROI – Human Error, we have discussed how much a company loses due to human error during payroll calculation.  But this is not the only cost involved when it comes to manual employee attendance tracking.

If your employees are registering using old fashion Punch Cards or manually entering their time into a log book, someone has to manually calculate these records and enter them into payroll software.  On average, it takes 4 minutes per employee to calculate a time card and 2 minutes to enter the data into payroll software.  What does it mean in dollars?

Let’s say we have 100 employees.  It takes someone 600 minutes or 10 hours to calculate everyone’s time and enter it into payroll software.  If we are doing payroll bi-weekly, it means that we have 26 payrolls per year.  10 hours times 26 payrolls, comes to 260 hours per year just to calculate payroll.  If employee who calculates payroll gets paid $20/hour, the yearly cost is $5, 200 or $433.33/month.  If you are doing your payroll on a weekly basis, then the cost is doubling to $10,400/year or $866.67/month.

Table below outlines how much a company is losing every payroll based in bi-weekly payroll schedule.  If you do your payroll weekly, simply double each value. Cross reference number of employees in your company with the number of minutes you think it takes to calculate each time card and enter the data into your payroll software.

Employees

Number of minutes it takes to calculate each employee’s time card

1 min

2 min

3 min

4 min

5 min

6 min

7 min

8 min

25

$217

$433

$650

$867

$1,083

$1,300

$1,517

$1,733

50

$433

$867

$1,300

$1,733

$2,167

$2,600

$3,033

$3,467

75

$650

$1,300

$1,950

$2,600

$3,250

$3,900

$4,550

$5,200

100

$867

$1,733

$2,600

$3,467

$4,333

$5,200

$6,067

$6,933

125

$1,083

$2,167

$3,250

$4,333

$5,417

$6,500

$7,583

$8,667

150

$1,300

$2,600

$3,900

$5,200

$6,500

$7,800

$9,100

$10,400

175

$1,517

$3,033

$4,550

$6,067

$7,583

$9,100

$10,617

$12,133

200

$1,733

$3,467

$5,200

$6,933

$8,667

$10,400

$12,133

$13,867

Midex Time Control, which is an online Time and Attendance software that eliminates the use of time cards and manual calculation of employee time. The price of a Midex Time Control solution provides a great return on investment!  To estimate how much return on investment a Time and Attendance software can bring to your company, see our ROI Calculator.