Return On Investment for implementation of an automated time and access solution
ROI can be gained in a number of areas - these are detailed on the separate worksheets and are summarised below.
Savings based on organisational estimates Savings based on research
Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5
Card Audit Savings £2,925 £3,900 £3,900 £3,900 £3,900 Card Audit Savings £8,775 £11,700 £11,700 £11,700 £11,700
assumed 75%
Lost Time Savings £255,938 £341,250 £341,250 £341,250 £341,250 assumed 75% Lost Time Savings £329,063 £438,750 £438,750 £438,750 £438,750 effective in year
Error Elimination savings £70,200 £93,600 £93,600 £93,600 £93,600 effective in year 1 Error Elimination savings £131,625 £175,500 £175,500 £175,500 £175,500 1
Total Savings £329,063 £438,750 £438,750 £438,750 £438,750 £2,084,063 Total Savings £469,463 £625,950 £625,950 £625,950 £625,950 £2,973,263
Solution Investment £49,000 £5,000 £5,250 £5,513 £5,788 £70,551 Solution Investment £49,000 £5,000 £5,250 £5,513 £5,788 £70,551
Return On Investment 672% 8775% 8357% 7959% 7580% 2954% Return On Investment 958% 12519% 11923% 11355% 10814% 4214%
cost per day £ 38.66
Investment Breakdown Organisation Information
your
employees 500 750 1000 company research
totals Staff on timesheets 250 250
Software £25,000 £35,000 £45,000 Hourly rate £ 9.00 £ 9.00
Implementation £12,000 £15,000 £20,000 Time to review a timesheet 3 7
Hardware £12,000 £18,000 £25,000 % inaccuracy on timesheets 4 4%
Annual Maintenance £5,000 £8,000 £12,000 Normal weekly hours 40 37.5
Time lost due to "time theft" 35 45
Research carried out by the American Payroll Association (http://www.americanpayroll.org/)
Savings based on card audit/timesheet collection and checking
Key benefit areas:
l Automation reduces the amount of routine and repetitive tasks
l Elimination of timesheet collection, approval and pass-on
l Significant reduction in timesheet checking time
l Automatic error and irregularity highlights
l Significant reduction in duplication of data entry
l Elimination of payroll pay rate calculation
l Automation will ensure that rule violations are highighed automatically
your estimate research
MANAGER Time saved by timesheet automation 2 6
PAYROLL time saved through timesheet automation 2 6
HOURS
Weekly time savings 8.33 25.00
Monthly time savings 36.11 108.33
Annual time savings 433.33 1300.00
£
Weekly financial savings £ 75.00 £ 225.00
Monthly financial savings £ 325.00 £ 975.00
Annual financial savings £ 3,900.00 £ 11,700.00
Untangible benefits
uniform approach across employees
conformity to company norms
encouragement of loyalty and honesty
management of staff time by FACT rather than anecdotal information
Clear and unambiguous application of payroll rules and rates across all work groups
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Savings in lost time
Time theft, however innocent, can result from the following:
l longer than permitted lunchbreaks
l "buddy punching" - fraudulent clocking/timesheet completion
l slightly late starts
l slightly early finishes
l cigarette breaks
l long coffee breaks
Industry research suggests average 49 minutes PER DAY lost through time theft.
your estimate research
number of staff 250 250
hourly rate £ 9.00 £ 9.00
Daily lost productivity 35 45 minutes
weekly lost productivity 729.17 937.50 hours
monthly lost productivity 3159.72 4062.50 hours
annual lost productivity 37,916.67 48,750.00 hours
weekly cost £ 6,562.50 £ 8,437.50
monthly cost £ 28,437.50 £ 36,562.50
annual cost £ 341,250.00 £ 438,750.00
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Error elimination ROI
This relates to the elimination of errors caused by one or more of the following reasons:
l inaccurate calculation of timesheet totals
l (mis)interpretation of payroll rules relating to time worked
l human error resulting from duplication of data entry
l re-running payroll to address such errors
l Automation will ensure that rule violations are highighed automatically
Research suggests that the industry average error rate is between 1% and 8%
For a conservative estimate, we have used 4% in the research calculations below
The estimate of savings is based on the error rate multiplied by the payroll cost
your estimate research
Number of staff 250 250
Hourly rate £ 9.00 £ 9.00
Hours per week 40 37.5
Error rate 2% 4%
weekly error cost £ 1,800.00 £ 3,375.00
monthly error cost £ 7,800.00 £ 14,625.00
annual error cost £ 93,600.00 £ 175,500.00
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