By automating your leave and accrual system, you can enjoy savings in a number of key areas, including:

  • Fewer data entry-calculation errors, which otherwise might result in a higher payout.
  • Elimination of time spent managing paper timecards, including re-keying of information into payroll systems.
  • Controlling overtime expenses and having tighter control over unauthorized leave time.
  • Better regulatory control through automation of retroactive calculations and error correction process.
  • Reduce administration costs via self-service functionality.
  • Elimination of payroll/time inflation and excess overtime caused by manual timekeeping.
  • Elimination of timecard processing and storage costs.
  • Elimination of timecard printing costs.

Pie chart displaying payroll savings areas.

Source: The American Payroll Association (savings based upon a $20 Million gross payroll).

Payroll error reductions

Percentage of gross payroll: 0.5% – 1.5%
Value: $100,000 to $300,000
Total Savings: $100,000 to $300,000

Elimination of re-keying of data and personnel resources

Percentage of gross payroll: 0.25% – 0.5%
Value: $50,000 to $100,000
Total Savings: $150,000 to $400,000

Control of leave time abuse and math errors

Percentage of gross payroll: 0.2%
Value: $40,000
Total Savings: $190,000 to $440,000

Eliminating inflation of time worked (tardiness, etc.)

Percentage of gross payroll: 1.0%
Value: $200,000
Total Savings: $390,000 to $660,000

Employee self-service

Percentage of gross payroll: 1.0% – 1.5%
Value: $200,000 to $300,000
Total Savings: $590,000 – $960,000

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