The Worksheet below is designed to calculate your Return On Investment (ROI) in an automated Time & Labor Management solution from IntegriTime
 
Three Expensive Problems:  
 
The American Payroll Association and organizations like Robert Half & Associates have done several studies
that report savings from 1% to 5% of your payroll costs when converting from a manual to an automated system.
Installing an Attendance Enterprise System from IntegriTime will virtually eliminate the following errors:
   
     
  EXPENSE #1:  Manual Computation of Hours  
     
    Industry experts estimate it takes 2½ minutes to manually  
  compute hours for one employee for a bi-weekly time period.  
     
     Number of minutes to calculate hours per employee  
  X  Number of pay periods per year    
  =  Number of minutes per employee per year  
  X  Average number of employees    
  =  Total minutes to calculate hours    
  /  Minutes        
  =  Number of Hours per year      
  X  Average hourly rate of person doing payroll  
  =  TOTAL COST OF MANUAL COMPUTATION  
           
 
  EXPENSE #2:  Error Factors Manual Computation of Hours  
 
    Errors made manually computing time are often an overlooked   
  cost. These errors will cost you thousands of dollars per year     
  When was the last time an employee complained that they were  
  overpaid? Historically, this error rate is 1-5%.  We'll use 1%.  
     
     Number of employees      
  X  Average number of hours per week    
  =  Number of hours per week      
  X  Weeks per year      
  =  Number of hours per year      
  X  Average hourly rate of hourly employees    
  =  Total yearly payroll for hourly employees  
  X  One percent error rate      
  =  TOTAL COST OF ERRORS    
 
 
 
 
  EXPENSE #3:  Lost Time  
     
    Annual surveys on productivity show that the average worker is paid  
  for 4½ HOURSof unproductive work per week in the form of coming  
  in late, long lunches or breaks, and leaving late to get overtime pay.   
  If we can recover just five minutes per day, the cost savings can be   
  staggering. To be conservative, we will use only two minutes per day.  
     
     Hours recovered per employee per year    
  X  Average number of employees    
  =  Total hours lost      
  X  Average hourly rate of hourly employees    
  =  TOTAL COST OF LOST TIME    
 
 
  Total Cost:  
     
     Manual Calculation      
  +  Error Factors      
  +  Lost time        
  =  TOTAL ANNUAL COST OF MANUAL SYSTEM  
           
 
  Return on Investment:  
     
     Investment in automated time & attendance system  
  /  Total annual cost (from above)    
  =  Cost / Return ratio      
  x  12 Months        
  =  PAYBACK (in months)