In the current economic climate there is no bigger challenge than running a successful office cleaning business. Companies that want to survive and grow need to become wiser, faster and more efficient in the way they operate.
Staying up to date in this industry that is constantly shifting isn’t easy, but being aware of changes as they’re happening can keep you ahead of the curve.
1. OVER PAYMENT
If employees know their attendance is being monitored, overall attendance will generally improve.
It is possible that employees may be overpaid by up to 30 minutes per day due to lateness, early leaving, long lunch breaks etc.
A good time and attendance system will reduce over payment.
For salaried employees, a saving will still be seen when employees stay longer at work beyond their standard contracted hours.
If we assume a conservative 1% increase in attendance, a cleaning company with 120 full-time employees (working 40 hours per week) could make the following savings:
Total Hours Per Week: 4800
Total average pay: £12.83 per hour
Total Weekly Pay: £61,584.00
Hours Gained Weekly through reducing absence by 1%: 48 SAVINGS PER WEEK: £615.84
SAVING PER YEAR: £32,023.68
2. HUMAN ERROR
With a non-computerized system, there is a potential for human error at each stage of the payroll process. Office Cleaning Companies in Bristol using a manual system are likely to be experiencing an error rate between 1 and 5%. If we assume a time and attendance system can reduce this by a conservative 0.5%, then the following savings could be made each week.
Total Weekly Pay: £61,584.00
Rate of Human Error Per Week: 0.5% SAVINGS PER WEEK: £307.92 SAVINGS PER YEAR: £16,011.84
3. ADMINISTRATION COSTS
On average it is estimated to take up to 7 minutes for managers to manually calculate and edit each time sheet, and a further 2 minutes to manually enter data from each time sheet into a payroll application. A good time and attendance system eliminates the need for this to be performed.
If we assume a conservative 5 minutes per time sheet for the calculation and data entry process, then the following savings could be made each week.
Calculation and Entry (hours): 10
SAVINGS PER WEEK: £128.30
SAVINGS PER YEAR: £6,671.60
Based on these figures, our system could save £1,052.06 each week for the featured company.
This equates to an estimated capital recovery of £54,707.12 per year!
