Manual processes, such as manual time tracking, still characterize everyday work in many companies and the recording of working hours is no exception. However, what at first glance appears to be less complicated often turns out to be a real cost guzzler on closer inspection. Errors, wasted time and unnecessary, repetitive tasks add up to impressive sums that put a strain on the budget year after year. In this article, you will learn why manual time tracking can become a problem for your company and how digital solutions, such as those from ZMI, can help you save time and money.
Manual time tracking: an expensive misunderstanding
Many companies, including many HR managers and directors, are unaware of the hidden costs of manual time tracking. On the surface, the practice appears cost-effective and flexible – after all, no additional technology or training is required, just a pen or a simple Excel spreadsheet. But it is precisely this supposed simplicity that is deceptive.
The costs at a glance: A sample calculation
Manual time tracking involves numerous small, at first glance insignificant tasks that can add up to massive costs over the course of a day or month. Below is a concrete example calculation:
Calculation basis:
In our calculation example, we assume a company with 500 employees who make four bookings per day. These could be, for example, arrival, start of break, end of break and departure. This corresponds to 2,000 daily bookings. We assume an average hourly rate of 40 euros.
Rounding error:
Even the smallest inaccuracies add up. With 2 minutes of incorrect rounding per booking, this results in 4,000 incorrect minutes per day – a significant loss of working time and money.
Time for recalculation:
Manual post-processing of times is time-consuming. With an average processing time of 30 seconds per booking, 1,000 minutes per day are lost here alone.
Effort of recording:
The booking itself costs working time. At an average of 15 seconds per booking, a company wastes another 500 minutes a day on administrative activities.
➡️ This results in total costs of € 3,670 – per day!
If you extrapolate these costs over the course of a year, the result is an enormous financial burden that can be avoided by using digital time tracking.
Challenges of manual time recording processes
The immense cost burden is only part of the problem. On the one hand, valuable working time is lost that employees could use more productively. In addition, accuracy often suffers, as errors in manual data entry are virtually unavoidable. The most important disadvantages at a glance:
- High error rate: Manual entry leads to rounding differences and posting errors, which can have a negative impact on the efficiency of payroll accounting.
- Loss of time: Instead of focusing on productive tasks, employees waste time on administrative work.
- Low transparency: Without digital tools, there is no real-time overview, which is crucial for many HR managers and managing directors. This can lead to problems with tracking and planning, especially in shift work.
Digital time tracking: A cost-efficient Alternative
The solution is obvious: digital time tracking. With a tool like ZMI, employees and employers gain control over working hours and absences and can sustainably reduce hidden costs.
The advantages of digital time tracking:
- Error-free time recording: Automated working time recording minimizes errors such as incorrect entries and rounding differences. The figures are always accurate and reliable.
- Faster, more efficient and time-saving: as data is recorded automatically, there is no need for any manual effort. This saves a significant amount of time and resources.
- Transparency and reporting in real time: A digital solution gives HR decision-makers access to precise and clear working time data at all times, helping them to keep an eye on important key figures and make well-founded operational decisions.
- Legally compliant documentation: Employers can always keep an eye on the requirements of the Working Hours Act and save time and effort during audits or inspections.
Time is money. What does your solution look like?
Manual time tracking is long outdated and causes immense costs. It’s time to opt for a more modern and efficient solution. With a digital time recording tool like ZMI, you can modernize your company, increase the productivity of your employees and save money every day.
