Even as the economy begins to recover, millions of businesses are still looking for ways to cut costs. For many companies, the largest single category of expense is labor costs, so they’re actively looking for ways to cut the cost of payroll. The trick, of course, is how to reduce labor costs without losing valuable employees.
After all, as the economy picks up steam, you’re going to need experienced workers.
A survey conducted by the SHRM (Society for Human Resource Management) in March of 2009 revealed 15 ways companies can cut costs without having to lay off workers.
The most popular methods of cutting payroll costs without layoffs include attrition, hiring freezes, salary freezes, retraining employees for other positions within the company and eliminating contract employees. Organizations can also cut work hours, reduce benefits, reduce salaries, offer early retirement… a whole host of options.
What I find interesting, though, is a relatively painless cost-cutting measure that isn’t listed.
Cutting payroll costs without cutting payroll
An easy way to possibly save a substantial amount of money on payroll is to improve your time and attendance tracking — especially if your current timekeeping system involves hand-written timesheets, manually adding up hours worked, or keying in work time to your payroll system.
Turns out, a lot of inefficiencies and errors creep in when you manually process payroll. And those inefficiencies and errors cost you money, every time you run payroll.
Beyond that, in another survey recently conducted by Harris Interactive, something like 21% of the respondents admitted they’d cheated on their timesheets. They’d punched in early, punched out late, neglected to clock out for unpaid lunches and breaks, added time to manually-written timesheets, and had somebody else punch in or out for them (“buddy punching”) — all of which costs businesses even more money.
And you know if 21% admitted to it, even more are actually DOING it!
An automated time and attendance system with appropriate rules configured could take care of most of those abuses.
A biometric system — such as Acroprint’s timeQplus V3 Biometric — would ensure employees themselves were physically present when clocking in our out, basically eliminating buddy punching.
Plus, automated systems perform payroll calculations automatically, and export time directly to your payroll system, eliminating a lot of clerical labor and keypunch errors.
Inside the Box
If your company is still using handwritten timesheets and/or a manual payroll calculation process, you could save a lot of money on payroll — without laying anybody off, or freezing wages or cutting benefits — just by switching to an automated computer-based time and attendance system.
Plus you could free up time your payroll department is spending on repetitive clerical tasks so they can focus on more productive work. And you could do it all with a computer time and attendance system that could cost as little as $100. Can’t beat that with a stick!
So if you’re looking for ways to cut costs, consider looking inside the box. (A box containing an Acroprint automated time and attendance system, that is…) 🙂
Acroprint has an ROI calculator that can help you figure out how much you could save by using a computer time clock system. If your company is looking to cut costs (and who isn’t, these days!), it might be worth checking it out!