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Making your business more profitable
by reducing your labor costs!

 
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5 Critical Insights in Reducing Labor Costs

By clicking on the topics below, you will learn how each critical insight plays a costly and negative role in your organization.

Cost of Absenteeism

Absence can consume as much as 36% of an organization’s payroll.

Direct costs: salary continuation, sick pay, vacation pay, short-term disability

Indirect costs: replacement labor and lost productivity
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Controlling Unscheduled Absences

66% of workers who call in sick at the last minute do so for reasons other than physical illness.*

69% of organizations say controlling unscheduled absences continues to be a major concern, according to a recent Mercer Survey.

*2007 CCH Unscheduled Absence Survey

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Attendance Enterprise Absence Management

An “enterprise approach” to managing absences for your entire workforce. In one system, Managers can track absences, manage surrounding processes, comply with regulations & policies and control absenteeism.
  • Track all absences as they happen
  • Enforce time-off tracking
  • Maintain accurate records
  • Points & Incidents automates enforcement

How is “Employee Financial Distress” Affecting Your Organization?

“Employee Financial Distress” comes in many forms: Stress and dissatisfaction about personal finances, stress of living paycheck-to-paycheck, stress about retirement, lack of confidence about ability to manage personal finances and, as health and stress about personal finances are related- stress related to Health Care costs and bills.

Employee Financial Illiteracy DOES Impact Employers...

Researchers found that 1 in 4 Workers in America (approximately 30 Million Workers) are seriously financially distressed. Researchers have also found that seriously financially distressed employees cause direct and indirect negative impacts on Employers such as health problems, absenteeism and lower productivity.

Up to 80% of financially distressed workers spend time at work worrying about personal finances and dealing with financial issues instead of working.

Employers can lose from $450 to $2,100 per financially distressed employee in terms of higher Health Care costs, absenteeism and lower productivity.

Worksite Financial Education

Employers are becoming more aware of the need for financial education and the negative impact financial stress has on the employee and the business. Many employers are introducing new programs that will educate their workforce about retirement planning and personal finance. Financial education programs contribute to the company’s bottom line. The ROI generally has a return of 3:1.

Companies providing financial education show results that included Improved workplace productivity, Reduction in absenteeism, Improved employee morale, Reduced turnover rates, Lowered workplace distractions which Reduced “operational risks” across the company.

IntegriTime can assist your business with Worksite Financial Education

Compliance

Compliance with FLSA (Fair Labor Standards Act), especially as it relates to overtime pay, is increasingly crucial. The burden of proof is 100% on the employer to comply with FLSA regulations.

The number of employees exercising their rights under FMLA (Family Medical Leave Act) is increasing according to The Bureau of National Affairs, on average, 8.9 percent of employees took FMLA leave in 2008.

Protect Yourself

Without a systematic means to manage all forms of employee absence, you risk failing to comply with government regulations and collective bargaining agreements. This can lead to serious consequences.
  • Back wages
  • Strikes
  • Penalties
  • Lawsuits

Employee Self Service

How much time does your HR or Payroll Department spend answering benefit balance questions or time off requests?

HR receives, on average, 4.8 requests for information per employee per year at the rate of 12 minutes per request - totaling nearly 1 hour per employee per year. For a 100 employee company that’s 100-hours per year HR spends providing information the employee can obtain from employee self-service.

Interesting Stats

  • The average employee saves 15 minutes per month by using employee self service.
  • The average manager saves 3 hours per employee per year due to employee self service.
  • In facilities where employees select the schedule pattern, the absence rate is 25% lower than in facilities where schedules are mandated without employee input.
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Employee Time Theft

“Buddy punching” is the age-old problem where employees punch in & out at the time clock for each other or take unauthorized leave.

Nucleus Research found that 74% of organizations experience payroll losses directly related to buddy punching. The Boston Globe and Denver Post newspapers recently reported that U.S. companies lose nearly $400 Billion per year in lost productivity due to “time theft” and loafing.

How Much?

A leading authority on employment issues has conducted numerous surveys relative to time theft and concluded that the average employee "steals" approximately 4.5 hours per week from his employer or nearly six full work weeks per year.

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Employee time theft may be costing your business more than you think... You could be losing more than 10% of your payroll through these forms of time theft:

  • Late arrivals or early departures
  • Taking long lunch hours and breaks
  • Handling personal business while at work
  • Slowing down the work pace to create overtime
  • Excessive socializing and personal telephone calls
  • Using Company time and facilities to operate other business


We will help you maximize your workforce productivity to reduce your largest expense - labor.  

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