5 Steps in Selecting a Time and Attendance Solution
Here are 5 steps to help you in the selection process:
1) Assess your current time and attendance system.
The first step is to learn how your current time and attendance system works and doesn’t work. Look for problem areas like data input errors, redundancies, antiquated processes, and an increase in administrative costs. During the analysis be sure to look at the whole picture. Consider creating a flow chart, it’s an excellent way to understand and define your current process from employee hire and clock in to paycheck.
2) Set your goals.
Now that your current payroll process has been defined, you will be able to set your goals for the new automated system. Take into consideration system requirement goals, as well as organizational goals. System requirement goals are time off requests, potential overtime flags, missing time indicators, etc. Organizational goals are to decrease annual payroll costs by 5%, decrease data input error rate by 2%, increase profits’ by 3%, etc.
3) Calculate your costs.
Make sure that you establish all your costs involved in making your purchase. Consider costs associated with hardware, software, installation, training and ongoing fees.
4) Determine your return on investment.
Implementing an automated time and attendance solution will immediately help to reduce your labor costs. To calculate your organizations reduction in labor costs, consider the following: decrease in payroll errors, decrease in processing time, and the improvement in labor reporting.
5) Evaluate and select a vendor.
Begin by creating a list of potential sources. Next, gather your payroll team, as this will provide different perspectives. Use your predefined goals and compare the features and benefits of your new time and attendance software. Consider ranking each criterion on a scale from 1 to 5. Last, consider the company background, obtain references, and research the customer service team.