Save on Payroll Costs Without Reducing Staff
Save on Payroll Costs
If you are looking for ways to reduce payroll costs and not have to reduce staff, there are several areas you can review to ensure you are not losing excess payroll unexpectedly. Many times this loss is unintentional.
Many organizations, tend to rely on the original configurations of their time and attendance systems and do not consider changes or areas where there may be potential seepage.
Research reveals the average organization has up to 2.5% of their total payroll that is seepage. This does not include the fringe benefits percent of payroll on top of that.
Although the below three areas are not the only areas, here is a good start to controlling some of your costs.
1. Excessive Overtime and Non-Productive Time
2. Clock abuses or gaming the time-clock
3. Missed time entries
Organizations typically do not recognize the power of Time and Attendance Systems.
Built in controls can minimize payroll losses. Optimizing your system can result in considerable savings.
Healthcare System with approximately a $1B payroll found $13M (1.3%)
Utility Company with approximately an $800M found $12M (1.5%)
Healthcare System with approximately a $600 payroll found $1M (1.6%)
Don’t let your payroll fall through the cracks! Optimize your system to work for you and minimize seepage.
Author: Sue Nuss, CEO/President of The Nuss Group Workforce Management Division of CSI