Excel Timesheets vs Employee Timesheet Software

Operational Cost Avoidance

The following table summarizes the total time and costs to show that the payback period or ROI to purchasing Dovico employee timesheet software.

Time and costs (US$) avoided using Dovico online time sheet in comparison to using an Excel template for timesheets

 

One-time savings using Dovico employee timesheet software
Annual savings using Dovico employee timesheet software Total cost
(@ $35/hr)
Easy setup & quick deployment 31 hours   $1,085
Supervise expenses & administrative effort   240 hours $8,400
Compile weekly time, expense & project accomplishments   96 hours $3,360
Easy employee timesheet software integration   48 hours $1,680
Reduced labor effort   576 hours $20,160
Projects delivered on time & on budget   240 hours $8,400
Total 31 hours 1,200 hours $43,085
One-time cost to purchase Dovico employee timesheet software for 12 users     $1,380

In the past, measures of increased productivity were often not considered in traditional cost-benefit analysis because manual or spreadsheet based time recording methods are labor-intensive. The ever-increasing emphasis however relating to optimizing corporate investment through improved performance, productivity and efficiency are indications that it must now be included in the calculation of ROI. Automated tools such as 'Dovico Timesheet' and 'Dovico Planning & Timesheet' can easily measure productivity gains to be included in the calculation of traditional cost-benefit analysis.

Ways in which a company may seek to reduce or avoid different types of costs when implementing a new system is also important in the calculation of the ROI. The following case study demonstrates how certain tangible benefits can be quantified to include in the calculation of the ROI. It evaluates cost savings through the purchase of employee timesheet software from Dovico compared to using a spreadsheet application such as an Excel timesheet to record and maintain time management and expense information for a small organization. This smaller company example is used for ease of understanding the ROI, as the figures below would be greatly magnified for larger organizations.

Case Study for Cost Savings

This case study considers the ways in which a company may seek to reduce or avoid different types of costs associated with project time management and expense entry. Different ways of achieving this are discussed, with examples used to illustrate points raised. It clearly demonstrates the rate of return, payback period and annual cost avoidance based on certain tangible benefits through the use of Dovico online time tracking software.

For ease of understanding, a small company of two managers, and 12 employees using a Microsoft Excel timesheet program is used to record time manually. The following are documented savings which resulted when Dovico employee time tracking software was purchased.

Although the Dovico employee timesheet software has a live link to Excel for additional reporting and data manipulation capability. This case study shows the cost savings when Excel timesheet data entry is done using Excel spreadsheet software instead of Dovico online time sheet management software.

Quantifying Cost Savings
Easy Setup & Quick Deployment

Most project time management and expense gathering applications require a great deal of initial setup, maintenance and training. Even in a small company, it is often recommended that a period of 3 days or more be set aside for installation, deployment and training. In the case where an Excel timesheet template is used, additional time is required to properly format the excel timesheet, develop the training material and continually update the information. In larger organizations, several files are required to keep the process simple however; consolidating the information across multiple departments and locations is labor-intensive.

Dovico online timesheet software provides easy deployment because of the quick install at the server location only. Population of the database can easily be migrated from existing systems using the import function or integration. It can be used, for example, to quickly bring HR, project management, and other data into Dovico online time tracking software.

Training can be done quickly using existing materials (e-Learning, manuals, guides, help files, etc.), which are provided with the purchase.

In this case, the one-time savings for this process is 31 hours which includes:

Number of effort hours required
  Excel Timesheet Dovico Timesheet
Develop/prepare training material    
Server & deployment installation    
Employee access setup    
Data setup    
Employee training    
Manager training    
Maintenance/update    
Total 45 hours 14 hours

Supervise Expenses and Administrative Effort

The effort for managers in verifying and consolidating the information can also be quantified. In this particular case, a time savings of 240 hours per year was achieved when Dovico employee timesheet software was used.

Number of effort hours required
Manual effort required using Excel Timesheet templates Time saved per week per manager = 2.5 hours x 2 managers = 240 hours per year
Approve/clarify time entries
Prepare & sign timesheets & documents
Consolidate remote time & expense entries
Total manual timesheets
Follow manual approval process
Manually apply overtime
Calculate overtime
Compile weekly time, expenses & project accomplishments

Compile Weekly Time, Expense and Project Accomplishments

A time savings of 96 hours per year is recorded based on existing integrated reporting capabilities and automatic transmission to clients and staff members on a regular basis. Dovico employee timesheet and time management software includes over 135 reports with new reports available on-line free of charge, which are published regularly. The project time tracking software system includes the ability to automatically send reports to clients and staff members.

Number of effort hours required
Manual effort required using an Excel Timesheet template Time saved per week per manager = 1 hour x 2 managers = 96 hours per year1
Create weekly reports by project/employee/task
Send reports to clients and/or selected staff

Easy employee timesheet software integration

Dovico employee time tracking software includes advanced integration architecture allowing for easy integration of data with existing payroll, billing, ERP, CRM, accounting, project management or other online timesheet software. In this case, a time savings of 48 hours per year was recorded.

Number of effort hours required
Manual effort required using an Excel Timesheet template Time saved per week per managers = 0.5 hours x 2 managers = 48 hours per year1
Export data to the payroll timesheet software

Reduced labor effort

A workflow process establishes which manager(s) must approve an employee's online time sheet and/or expense submissions before they can be processed for project costs, billing, reports, etc. When multiple approvals are required for the same submission (e.g. project manager then HR manager), the workflow controls which manager approves first, second, and so on.
Dovico employee timesheet software has integrated multi-level security, approval/workflow processes, error detection and easy time and expense submission, which are not present in other systems such as an Excel timesheet template.

A time savings of 576 hours per year was recorded to eliminate these unnecessary labor costs.

Number of effort hours required
Manual effort required using an Excel timesheet template Time saved per week
per employee = 1 hour x 12 employees = 576 hours per year1
Increase resource productivity
Manual data entry
Manual time calculation (7 min./employee)
Accuracy errors in reading time cards
Error detection & correction
Track daily time & expenses
Submit time & expenses for approval

Projects delivered on time and on budget

Knowledge based on past accurate information helps in the ability to deliver projects on time and on budget. This knowledge is critical in applying sound project time management practices. A cost savings of 240 hours per year can be quantified for this purpose.

Number of effort hours required
Manual effort required using an Excel timesheet template Time saved per week = 5 hours = 240 hours per year
Evaluate if projects are on budget
Calculate additional hours to complete project
Improve quotes with what-if reports/scenarios
Accurate project projections
Better project monitoring
Better project time management

Conclusion

Based on the above analysis, a 12 employee company will save $41,705 (US$) (or 1,231 hours) in the first year following the implementation of Dovico employee time tracking software. With just 12 employees, Dovico online timesheet software pays for itself in less than one month!

 

Excel Timesheet vs Employee Timesheet Software graph

The economic cost in delaying the deployment of Dovico employee timesheet software is over $800 US per week without considering the ability of staff members to work on more productive issues. The economic cost is magnified significantly for larger organizations. The cost may be higher if no time keeping system is in place or the current system is based on hand written time sheets.

 

Economic Cost for using Excel Timesheet Templates

 

Based on 48 weeks

References

  1. BLACK, Nancy L. and Diane Doucet, Technology to Improve Productivity in Government, May 19, 2005.
  2. BLACK, Nancy L. and Diane Doucet, Incorporating New Work Measurement Teaching Tools, Proceedings of the Eleventh Canadian Conference on Engineering Education, July 1998, pp. 498-505.
  3. Dovico Software, Time Study report prepared for Verification Division of Public Works and Government Services, January 1996a.
  4. Dovico Software, Time Study report prepared for Genesys & NBTel (Alliant Telecom), March 1997.
  5. Dovico Software, Time Study report prepared for The Co-Operators Insurance / Financial Services, October 1995.
  6. PARKER, Marilyn M. and Robert J. Benson, Information Economics, Linking Business Performance to Information technology, Chapter 11, pp 122-133, Prentice-Hall, Inc., New Jersey, 1988.

ABOUT Dovico Timesheet Software:

Dovico online timesheet software is a powerful time management software solution that monitors project costs, employee timesheets, and expenses. This performance management software has been tested and proven globally by successful companies for workforce automation. Dovico online timesheet can help increase your profits and provide improved project control and timesheet management. Software integration to Intuit QuickBooks, Microsoft Office Project and compliancy with SOX and DCAA are included.