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Cost Justification

There are four main areas of saving in moving from a manual to a computerized clocking system. The details are as follows:

 

1. Rounding

With a manual or mechanical system it is impractical to calculate the exact hours worked each day. This problem is resolved by rounding, e.g. calculating the hours to the nearest fifteen minutes. On average, this leads to each worker being paid for five minutes per day when he is not even at work. This is money paid out that is irretrievable. TNA 4 can pay exactly to the minute and so reduce this to zero.

 

2. Calculation Errors

Whenever there is a human element involved in wage processing, the possibility for errors exists. This can be from mistakes in calculation, unclear printing on cards, transpositional errors, etc. Employees will always complain if they are underpaid but will rarely speak out if they have been overpaid. Therefore errors made will always be at the expense of the company. Research has indicated that such errors cost a company, on average 0.5% of the annual payroll. TNA 4 automates the process and thus eliminates such errors.

 

3. Time Saving

The time spent manually collating and processing data is time that could be spent more productively. By automating the entire process, the time spent on this task is dramatically reduced. As an example a 100 employee site can be reduced from 5 hours on payday to 30 minutes.

 

4. Maintenance and Stationery Costs

Mechanical systems have hundreds of moving parts and are therefore prone to breakdown. A computerized system has no moving parts and is thus much more reliable, thereby saving on maintenance costs. A mechanical system requires regular ordering of clock cards, ribbons etc. whereas the TNA 4 system allows an employee to use the same card indefinitely. Considerable savings can therefore be made on stationery.

You can make your own calculations as to the enormous savings available to you. Alternatively you may refer to the chart overleaf which is based on savings of typical companies.

 

Testimonials

"previously used manual time log in - time theft an issue. Now time accuracy is better..."