Your Time and Attendance Process Might Be Costing You More Than You Think!

There is deliberate time theft and then there is accidental time theft.  Both can cost your business a lot of money.  Do you have an understanding of how much time could be wasted in your organisation?  Too many coffee/smoko breaks; idle chatter in the hallway; catching up on last night’s MAFS episode to name a few.  And do you know how to address it? 

Here’s How to Fix It 

Here’s a question most businesses don’t really want to hear: 
How many hours did you pay for last year that were never actually worked? 
The answer might surprise you. 

If you’re still relying on manual timesheets because “that’s how we’ve always done it,” or “it’s easier for staff,” or “change is too hard,” then it’s worth asking a bigger question: 

How confident are you in your payroll accuracy and your Fair Work compliance? 

The quick answer? 
You can’t be. 

Let’s break down why. 

What’s Really Behind the Payroll Saving Claim? 

You’ll often hear that switching from manual timesheets to a time & attendance system can save around 3–5% on payroll. Sounds high, right? But once you understand the logic, it’s not so far-fetched. 

Automated systems help you avoid: 

• Manual entry mistakes 

• Rounded or guessed times 

• Missed clockouts 

• Accidental “time drift” 

• Time theft (even the unintentional kind) 

• Hours of repetitive payroll admin 

The fewer guesses or assumptions involved, the fewer mistakes you are paying for. 

Where the Savings Actually Come From 

Manual timesheets depend on memory and even the most honest team will estimate their times. Those estimates stack up quickly. 

Here’s a simple example using just 5 minutes: 

• Overestimating 5 minutes a day 

• Becomes 25 minutes a week 

• Over a month = 100 minutes (1.67 hours) per employee 

• Across 20 employees = 33.4 hours paid but not worked every month 

• At $30/hour = around $1,000 a month 

• Or roughly $12,000 a year 

Don’t forget those oncosts!! 

You’re also paying superannuation, payroll tax, and PAYG on those inflated hours. So, the real cost is even higher. 

No one is doing anything wrong it’s simply the reality of relying on a process built on manual entry and your staff’s best guess. 

And that doesn’t even include the time your payroll team loses chasing missing sheets, deciphering handwriting, or manually entering data. (Everyone’s favourite task… right?) 

Time Theft: The Quiet Cost Nobody Wants to Talk About 

Most time theft isn’t malicious, but it does happen, and often becomes a “normal” workplace habit. 

Common examples include: 

• A colleague clocking in for someone else 

• Forgetting to clock out 

• Rounding start or finish times 

• “I think I started around 8ish…” 

Just a few minutes per shift across your workforce quickly adds up to thousands every year. 

An automated system helps eliminate this through: 

• Unique staff logins 

• Mobile or fixed clock-in devices 

• GPS tagging (when appropriate) 

• Photo or biometric verification 

• Realtime timestamps 

It’s not about policing; it’s about accuracy and fairness. Paying for hours worked is the minimum standard. 

But Let’s Be Realistic… 

Not every business will hit that 3–5% saving. Some already have tight processes and well-monitored rosters. 

For many, the realworld saving is closer to 1% of payroll but even that adds up. Especially over an entire year. 

Access to real-time data leads to improved scheduling and increased productivity 

This is where modern time & attendance systems really show their value. 

Instead of relying on yesterday’s timesheets or guesswork, you get realtime visibility into your workforce: 

You can instantly see: 

• Who’s on shift right now 

• Who’s running late or finishing early 

• Who’s approaching overtime 

• Which areas are over or understaffed 

This helps you: 

• Make quicker, smarter scheduling decisions 

• Reduce unnecessary overtime 

• Improve productivity through better staffing alignment 

• Spot patterns and issues that paper timesheets will never show 

Realtime visibility isn’t just helpful it’s a genuine operational advantage. 

Payroll Integration Means No More Double Handling 

One of the biggest hidden costs in manual systems is the admin workload. 

A modern time & attendance system integrates seamlessly with payroll, which means: 

• No more retyping hours 

• No more spreadsheet reconciliations 

• No more backandforth fixing inconsistencies 

• No more “which version is right?” 

• Fewer errors 

• Faster payroll processing 

Something that used to take hours becomes a few clicks — giving your payroll team their time (and sanity) back. 

Fair Work Compliance Made Easier 

Fair Work requires employers to keep accurate, complete, and accessible records for 7 years. That includes: 

• Actual start and finish times 

• Breaks 

• Hours for hourly employees 

• Rosters and any changes 

• Variations or corrections 

• Records that cannot be altered later 

Manual systems can meet these standards – but only with exceptional administrative discipline. 

Automated systems make this almost effortless by: 

• Recording hours automatically 

• Creating tamperproof audit trails 

• Storing records securely 

• Capturing variations in real time 

• Reducing the risk of underpayments 

• Making audits smoother and far less stressful 

Accuracy and peace of mind come standard. 

The Bottom Line 

A good time & attendance system gives you: 

• Accurate payroll 

• Less admin 

• Realtime insights 

• Smarter scheduling 

• Higher productivity 

• Reduced time theft 

• Seamless payroll integration 

• Reliable Fair Work compliance 

• Clear, transparent records every pay run 

Even saving as little as 0.5 – 1% will deliver you and your business real financial savings when paired with better accuracy and visibility. Small improvements stack up quickly and allow you to focus on the business, not payroll problems. 

Let’s talk about your time and attendance system and see if we can squeeze some savings and peace of mind for you.  

If you would like to get further information, please contact our HR Team on 1300 4 ADVICE.