Docstoc

ROI

Document Sample
ROI Powered By Docstoc
					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

 return to summary page
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




 return to summary page
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




    return to summary page

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:1
posted:12/17/2011
language:
pages:5