What is Time Recording | Computerised | Traditional
What is the cost of lost time?
This simple analysis is intended to explain the time attendance methodology to enable you to assess the cost of lost time.
Using a calculator you can easily adjust the figures in the table below to correspond to different hourly rates, numbers of employees and a different amount of time lost per day.
Assumptions used in the table below:
Minutes |
Hours |
Days |
|
8 |
|||
Working hours per day |
|||
Working days per week |
5 |
||
Working hours per week |
40 |
||
Minutes lost per day |
5 |
||
Total weekdays in a year = 5 days x 52 weeks = |
|
260 |
|||||||
Statutory holidays - days per year |
|
|
8 |
||||||
|
|
|
|
||||||
Annual holiday - days per year |
|
|
20 |
||||||
|
|
|
|
|
____ | ||||
Working days per year |
|
|
232 |
||||||
|
|
|
|
|
____ | ||||
|
|
|
|
|
|||||
|
|||||||||
The cost of lost time for a year based on the assumptions shown above is:
|
|
Number of employees |
|||||||||||
Hourly rate |
Annual wages |
1 |
10 |
25 |
50 |
100 |
|||||||
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|||||||
6.00 |
12,480 |
116 |
1,160 |
2,900 |
5,800 |
11,600 |
|||||||
7.00 |
14,560 |
135 |
1,353 |
3,383 |
6,767 |
13,533 |
|||||||
8.00 |
16,640 |
155 |
1,547 |
3,867 |
7,733 |
15,467 |
|||||||
9.00 |
18,720 |
174 |
1,740 |
4,350 |
8,700 |
17,400 |
|||||||
10.00 |
20,800 |
193 |
1,933 |
4,833 |
9,667 |
19,333 |
|||||||
NOTES
- Overhead and on-costs are excluded from the above calculation. There are on-costs associated with every employee, e.g. Employer's National Insurance. These costs are all in addition to the cost shown in the table.
- Only the lost time for working days has been included in the table; statutory and annual holidays have been excluded.
- The calculation uses the basic rate - time lost at premium rates will cost more!
- The calculation above uses the most conservative basis.
If you need any advice on preparing a cost/justification for a Time & Attendance System, please contact us.
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