Analyzing the Effectiveness of Employee Attendance in Reducing Labor Costs

Introduction

Employee attendance has become an important indicator of performance and productivity in organizations. In an effort to reduce labor costs, many organizations are now utilizing an automated tracking system such as an attendance software to monitor employee attendance. This case study examines the effectiveness of employee attendance system in reducing labor costs by analyzing the results of a study conducted by a major retail organization in the United States.

Background

The retail organization in question is a large discount store chain located in the western region of the United States. The store’s staff work in a variety of departments, including cashiers, stockers, customer service representatives, and supervisors. The organization has implemented an automated attendance system to track and monitor employee attendance. The attendance system is used to record the start and end times of employees, as well as any missed hours and tardiness.

Objective

The objective of this case study is to analyze the effectiveness of utilizing an automated attendance system in terms of reducing labor costs.

Methods

This case study utilizes a quantitative research approach with descriptive statistics. The data was collected from the organization’s online attendance system for a period of one year (April 2018-March 2019). Descriptive statistics such as percentages, means, and standard deviations were used to analyze the data.

Results

The results of the study indicate that the staff at the organization had an average attendance rate of 93.5%, with the highest attendance rate being 95.5% and the lowest attendance rate being 92.8%. The average elapsed time between arriving late or leaving early was approximately 20 minutes. The staff also had an average of 2.05 absences during the period of study. The results also showed that the organization experienced a labor cost savings of 9.7% by utilizing the automated attendance system.

Discussion

The results of the study indicate that the organization experienced a significant reduction in labor costs as a result of utilizing an automated attendance system. The organization experienced an average attendance rate of 93.5%, which is substantially higher than the industry standard of approximately 88%, and an average of 2.05 absences per employee. The average elapsed time between arriving late or leaving early was also decreased to 20 minutes, significantly reducing labor costs.

Conclusion

The results of this case study have shown that the implementation of an automated attendance system has proven to be effective in reducing labor costs. The organization has demonstrated a significant improvement in employee attendance rates and a reduction in labor costs.

Recommendations

The findings of this case study suggest that the implementation of an automated attendance system could have a significant impact on reducing labor costs. It is recommended that organizations consider implementing an automated attendance application in order to monitor employee attendance and reduce labor costs.

References

Albano, S. (2014). How automated employee tracking systems can save labor costs. Business.com.

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