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pIf you are considering a number of new Payroll Systems but cost is limiting your choice perhaps you can consider leveraging the cost by simultaneously introducing an automated a href=http://www.timeandattendanceconsultant.com/ target=_blanktime and attendance system/a./p
pOn the surface this may look like adding another cost and another layer of implementation but this can always be managed while your funding restrictions may need a solid business case or return on investment to gain approval from senior management or the board./p
pYou probably wont get a return on investment by introducing new payroll software . Sure, there are efficiency savings in any good payroll software but they are not significant. By comparisonnbsp; automated Time and Attendance systems have been shown to save between 1 and 3 percent of your companys annual payroll. These savings are achieved by eliminating over payments to employees, and by dramatic reductions in payroll processing time (If you have two payroll staff you can generally do with just one).nbsp; Even if your company is at the low end of the potential savings range it is likely that your cost reductions will contribute to a significant return on investment for the Payroll/Time and Attendance project./p
pFor example, a typical Payroll System for a company with 500 employees would cost in the order of $30,000. An automated Time and Attendance System for the same number of employees would also cost $30,000 depending on the number of a href=http://www.timeandattendanceconsultant.com target=_blankpunch clocks/anbsp; or a href=http://www.timeandattendanceconsultant.com target=_blankelectronic time clocks/a required. The Time and Attendance System, saving you 1 percent of your annual payroll costs. If you do the calculations for a business paying $800 X 500 Employees X 52 Weeks and then take 1 percent of that you end up with an annual saving of $200,000… and there is your cost justification./p
pIf this scenario sounds a little too good to be true then lets be even more conservative and estimate your savings at only one quarter of one percent. This would mean that your investment of $60,000 would recover $50,000 in year 1. If you add in the cost of annual product support of $10,000 per year and depreciate the software over 4 yearsnbsp; and measure the return on investment over 4 years this gives you an investment of $60K, Depreciation of $60K and maintenance of $40 K giving an investment total over 4 years of $160K. The saving of $50 K per year totals $200k. Therefore the ROI is 200K/160Knbsp; = 25% ROI./p
pIntroduce a payroll system by itselfnbsp; it just going to be pure expense . Combine the payroll with automated a Time and Attendance and you will be able to choose the payroll package you want with the added confidence to take the expenditure proposal to the board knowing that the combined solution is a better commercial opportunity than payroll alone./p
p From an operational perspective , this is certainly a more complex process. It is difficult enough to implement either of these systems in isolation let alone simultaneously . To offset the risks ask your chosen time payroll provider to recommend a time and attendance partner. Generally speaking payroll companies have time and attendance partners and both solution providers will be familiar with each others products and they will have many implemented sites../p
pJames Bell/p
pTime and Attendance Consultant/p
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