Time & Labour Management (TLM) systems can save your business millions
Posted by: ADP on 24 September 2015 in Human Capital Management
Many in business mistakenly believe that the only way HR can save money is by making staff reductions. Others might point to retention, and the effectiveness of employee engagement and continuous professional development. But the real experts will identify payroll and time and labour management (TLM).
Reducing costs with time management software
Using an automated system to replace the manual and time-intensive process of collecting, totalling and inputting employee time data results in substantial savings. I know this because we’ve done it thousands of times at ADP, and a familiar pattern of cost savings occur. So I’d thought I’d share some of these with you:
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Lower labour costs associated with ongoing payroll processing and systems maintenance: 40%-46% less than for companies without an automated TLM system
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Smaller staff teams responsible for payroll: 38%-45% less than for companies without an automated TLM system
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Lower average cost per paycheck: 28%-35% less than for companies without an automated TLM system.
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Providing payroll and HR self-service functionality to employees—this strategy results in a 50% lower TCO of workforce administration for large organizations compared with peers managing the function without these features
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Integrating time & attendance with payroll —this leads to a cost efficiency of 14% over a manual approach.
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Organisations outsourcing multiple functions to a single vendor – leads to cost efficiency on average of 32% compared to organizations using multiple vendors or in-house approaches.
Innovative HR tools for remote employees
Ongoing payroll processing costs and system maintenance costs are the two things that crop up again and again. Clients talk of finally achieving data integration with outsourced payroll processing and automated TLM systems, and no longer having to grapple with lots of different systems that can’t speak to each other.
With so many more employees remote working in today’s modern economies, most employee time and labour data comes not from the same office from 9-to-5, but rather from multiple locations, on the move. Tracking and reporting time and attendance is therefore more demanding than ever. Cloud-based data analytics are considered as a must-have for innovative HR vendors wanting to provide really useful people and business-aligned information.
Core HRMS and talent management features (e.g. payroll, performance management, recruiting, learning management, and succession management) are available from most major ERP providers. But the exciting new tools that will drive adoption and engagement, such as mobile apps and mobile HR applications, social recruiting capabilities, development planning, learning on the go features, along with a multitude of user-friendly applications for TLM, are the ones that can make the difference.
Effective, money-saving TLM is all about having the Right Tools at the Right Time. Managing your workforce requires a comprehensive, integrated suite of tools: employee scheduling, attendance, leave management and activity tracking that’s fully integrated with time and attendance tracking. Then you can proactively help control labor costs, increase productivity, improve compliance and enhance revenue opportunities.
Time and Labor management software gives you a proven solution to schedule and track hours worked and paid time off. This can even be done via an app on your mobile phone now. You can satisfy wage and hour reporting requirements quickly and easily by being able to better operate in an increasingly demanding regulatory environment, accommodate a multi-lingual global workforce, prevent over- or under-staffing issues. All of which, you guessed it, saves your business money.
For more time and labour management insights check our website.
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