The Reasons Why Employee Time Tracking Improves Productivity
Employee time tracking can significantly boost productivity in the workplace. Discover the key reasons why implementing time tracking systems can benefit your business.
In understanding why time tracking is important for employers and employees, there are several aspects, which are worth discussing with your team to prevent the negative perception of time tracking or let it fall under the category of the tool of oppression.
Thus, to realize the importance of time tracking, workers are to be presented with evidence of how employee time tracking makes a positive impact on productivity.
The best way to do it is to show time tracking functionality that stretches far beyond monitoring employees' activity, and, in actuality, helps maintain work life balance and brings flexibility.
Introducing the benefits, employers and business owners may start by listing reasons why time tracking is crucial and building this list as below.
How Employee Time Tracking Benefits Businesses
Increase in Employees' Productivity
Start the presentation of time tracking practices at work with conferring why time tracking is essential for employee productivity
Ensures Precise Time Tracking
First and foremost, point out that it ensures the accuracy of work time records 💯
Automated time management secures the proper registration of the working hours that have been worked. It enables employees to get fair compensation and be accountable for their time.
Employers can be assured of the resultant figures encouraging a culture of transparency, thus, leading to high productivity.
Recognizes Employee High Performace
It can be also added that it arms employers with a tool that recognizes the dedicated teams' efforts and excludes bias.
Highlights the Value of Employee Time
It sheds light on one more question, – the worth of employee time.
Financially speaking, with the tool for accurate work time calculations and categorizing billable and non-billable activities, employees can easily break down their hours by projects and tasks to maximize billable hours.
Alla Chernets
Focusing exclusively on time input and output metrics leads to potentially dangerous oversimplification in domains of personal productivity that always demand consideration. Rather than monitoring for spotting underperformers, activity and time tracking must be regarded as a building block in complex evaluation.
Nobody is your productivity twin: we all differ in what our productivity peaks look like. Although data from time tracking reports are not equal productivity metrics, employees can be encouraged to apply time and activity tracking data for in-depth research and exploration of personal productivity .
It allows for allocating productivity peaks as best suited time slots for performing focus tasks or zoning in deep work.
Actionable tips: Based on the number of tasks completed, it is easy to calculate individual completion rates, get metrics onthe ratio of planned vs. actual execution time, and work out time-related conditions for achieving your best performance.
Therefore, time tracking provides businesses with key operational metrics:
- quantifying project estimation vs. project evaluation
- identification of bottlenecks in project and individual work
- distinguishing top performers
- improving business profitability.
More Accurate Billing
Employee time tracking enhances billing precision for businesses. Here are the key ways it helps.
Precise Time Allocation
Time tracking gives minute-by-minute information on how the employees spend their working time. Rather than making an approximate idea in their head or jotting in a notebook, they have factual recordings of hours on indicated projects/ tasks/ clients. This means billing is determined by the number of working hours spent on a project, not estimates.
Detailed Billing
Detailed time logs are easy to document and, most importantly, they are incontestable. Each billable hour is documented with:
- Specific task descriptions
- Exact time spent
- Project or client information
- Dates and deadlines.
This reduces the chance of unnecessary conflict with the clients while at the same time, adding value to clients through sheer transparency on charges that they are billed for.
Less Time is Wasted
Automatic time-keeping systems control time usage with features like:
- Automatic clock-in/out
- GPS verification
- Detailed activity logs
- Make it a point that billable hours really correspond to actual work done.
Integration with Billing Systems
Actionable tips: A new generation of time and attendance software has options to feed into revenue recognition and invoicing systems translating recorded hours to charges. This almost completely eliminates errors.
Client-Level Granularity
Hourly rates could be different for distinct clients or different projects.
Time tracking enables:
- Precise rate application
- Monitoring of multi-rate projects
- When dealing with a breakdown of work performed, we refer to specific categories of work.
Smoother Payroll Payments
Employee time tracking supports the fast and correct calculation of employees’ payroll and streamlines payroll payments.
Simplified Payroll Processing
Compared with other forms of records, digital records minimize the possibility of lost or misplaced time cards.
Electronic time capture solutions eliminate paper time cards increasing efficiency and reliability in payroll processing:
- Eliminating manual data entry
- Reducing calculation errors
- Compliance with the general labor laws.
Advanced time tracking systems offer additional benefits:
- Project and task-based time allocation
- Applicable pay rate settings that agree with user requirements
- The calculation of overtime
- Comprehensive reporting tools.
Organizational Benefits
Implementing robust time tracking helps organizations:
- Minimum time to process payrolls
- Eliminate wage theft and time fraud.
- A guarantee of correct taxation and observance of labor laws.
Actionable tip: Using technology, companies can turn the traditional process of timekeeping into one of the most powerful tools for payroll management.
Project Management
Time tracking for employees can greatly improve practices of project management by giving more information and optimizing the following areas.
Resource Management
- When using work hours recording, you will be able to identify overworked or idle employees.
- Project workloads can be maneuvered to match organizational requirements based on project time tracking.
- Conduct temporal analysis to determine the availability of workers on certain projects for future reference.
Improved Budgeting
- Record time is taken in performing tasks to enable more competent cost projections for future projects.
- Identify what takes too much time and effort to be completed, so that you can manage workflows and, thus, save money.
The insights from project time tracking enable management to make more informed decisions about:
- Hiring needs
- Skills development
- Process optimization
- Task prioritization.
Overall, when employees track project time, it creates:
- More personal responsibility
- Better communication on work progress
- Zero productivity leakage.
Schedules Flexibility
🗓️Time tracking allows employees to track their own time meaning more freedom and less supervision and bureaucratic interference.
If you use a time tracker that syncs employee data across any platform or device, you will find it plain sailing to create flexible schedules for employees.
Flexible Work Hours
A reliable time tracker with employee timesheets has the capability that allows workers to feel more in control of their schedules since all the work logs are saved automatically.
In addition, automatic recording:
- enables employees to start and end a workday when it is convenient for them, which maintains work-life balance and boosts morale
- reduces absenteeism
- decreases employee turnover.
Feeling in charge of their time helps employees regain focus, cope with procrastination, and build the work hours to:
- make them fit around employees' personal obligations
- allocate performance of challenging tasks on productivity peaks, which reduces stress and maintains motivation.
An insightful read on how brain works throughout the day is here .
Time-Off Management
⛱️☀️Besides, time trackers with a built-in time-off module allow you to submit time-off requests directly from the time tracking account. It greatly facilitates not only HR Department operations but also enhances the image of the company as employee-friendly.
Employees must be encouraged to plan their time off and use capabilities of their time tracking software. Studies indicate that experiencing difficulties with planning vacation can seriously nose-dive productivity and increase stress.
Actionable tips: When employers determine that they will integrate time off scheduling which is embracing vacation time, and sick time as well as the employee’s personal time in the tracking system, it establishes a convenient schedule for businesses and employees.
It also allows the managers to better plan the project cycles of their working projects.
Companies can achieve their goal on the use of time tracking software in submitting PTO requests by establishing policies for the use of the software and proper training of their employees to make sure that they comply with the legislative requirements of labor law without the problem of overlapping schedules or confusing signals in communication.
Clear Project Goals
Employee time tracking allows to bridge planning and task management at best by bringing focus on the tiniest detail of goal setting.
Integration of Time Tracking and Task Managers
One of the strengths of time tracking as a full-fledged service is its capability of integration into various task management systems, which means navigating work along efficient routes leading forward rather than looking at a project as a mountain to climb.
Working according to defined time estimates and achieving short-term and long-term goals within predictable time limits results in fueling the sense of purpose.
Alla Chernets
Furthermore, work based on understandable metrics aligning with goals eliminates digital anxiety that often accompanies unstructured work and disrupted routines.
Goal setting is empowering for achieving results. By highlighting goals and connecting them to time metrics we create a result-oriented workflow and vastly improve motivation.
Making use of rich capabilities of time tracking integration in major task management systems, employees will find it easier to focus on goals without getting bogged down.
Less Time Spent on Administrative Tasks
Traditional time collection methods involve lots of manual input – workers have to fill in the record of their time spent on work.
Automated Timekeeping
Nowadays, time tracking solutions are advanced, eliminating the need for workers to do detailed timesheet entries on their own.
Managers can time-track employees with ease and get information in real time, thus, cutting valuable time spent on administrative work.
Reporting and Analytics
This implies that advanced time tracking tools have functions that enable single-click reporting.
Before automating time tracking deployment, managers had to waste time calculating and analyzing time data for hours and compiling reports.
They can obtain detailed results instantly. Multiple reports let the managers see productivity metrics and employee billable hours or evaluate the efficiency of the workforce.
Instant Accessibility
Time tracking solutions are often web-based, which means remote working mode is easily activated, and many administrative issues are solved stress-free.
Minimized Error Correction
The use of time tracking applications proves to be efficient as compared to manual data search procedures prone to errors.
This means that looking for, sorting out, and fixing time card errors take less time to accomplish — a significant time saver.
Integrated Workflows
Most of the time tracking systems connect with other applications such as project management tools, accounting software, and communication tools, among others.
Such an integration erases the barriers to information exchange and provides a computerized flow of data between several systems, simplifying administrative procedures.
Allows to Stay Compliant
Employee time tracking helps organizations stay compliant with various labor laws and regulations in several important ways.
Wage and Hour Compliance
Employers can provide employees with correct hours for wages including overtime wages. This assists companies in meeting FLSA compliance since it requires the correct compensation for all working hours, especially overtime for exempt workers.
Alla Chernets
Holding well-documented, factual data can save companies from wage and compensation-related issues and legal cases.
Labor Regulation Adherence
This means that working time regulations vary across different industries since they follow specific rules concerning a maximum number of working hours, working breaks, and rest periods.
Such necessities can be well managed using time-tracking systems since they can enforce the accuracy of calculations.
Audit and Documentation
Meticulous recording of the time spent on the project generates documentation that may be valuable during or after an internal or external audit.
These records are clear and can easily help in resolving some conflicts relating to worked hours, shifts, and breaks.
Tax and Payroll Compliance
It assists organizations in creating employer compensation documentation, which is crucial for tax compliance.
Industry-Specific Regulations
Some industries such as construction, health, and banking are sensitive to adherence procedures.
Time tracking systems can capture the specific compliance credentials required by these industries.
For example, they can capture time spent on onboarding, safety training, certifications, general training time, and other professional development hours.
Contract and Contractor Compliance
Advanced systems of time tracking can:
- Automate break tracking
- Send overtime alerts
- Integrate with payroll and HR systems.
If an organization engages contract workers or independent contractors, such fine-grained time tracking can assist in nurturing contractual obligations.
Best Time Tracking Tools for Business
Effective time tracking facilitates business productivity scheduling, cost control, and employee performance.
Here’s a brief introduction of some of the best time tracking options available.
TMetric
Overview: TMetric is very accessible time tracking software which can be used by multiple teams and freelancers.
Key Features
- Billing and invoicing stress-free
- Secure automated work time recording
- Technological competence in project and task management
- Progress reports for individuals and teams
- Integration with a great number of project and communication management tools
Best For: Businessmen who own small and medium businesses and need an efficient tool for tracking work time.
💰TMetric is available for free for teams of 2.
Clockify
Overview: Clockify is one of the simplest time tracking services for teams available on a budget.
Key Features
- Limitless tracking of projects and teamwork
- Time entries may be entered manually or entered using an automatic time clock
- Reporting and analyzing services
- Available as a browser extension and a mobile application
Best For: Companies with limited resources willing to have a functional tracking tool.
💰Available on a free trial with paid plans starting at $5.49 per user per month.
Toggl Track
Overview: Toggl Track is one of the long-standing leaders among time trackers, – its functionality makes it beneficial for individuals and teams working on projects of any size.
Key Features
- Easy to use tool for tracking time with just one click
- A reliable means of tracking projects and clients supplying all the necessary information in reports
- Integration with other tools such as Asana, Trello, Slack, Jira
- Apps for cross-platform deployment
Best For: Small businesses and solo artists who need an easy easy-to-manage tool.
💰Available on free and paid plans starting at $9 per month.
Time Doctor
Overview: The key focus of Time Doctor is to monitor productivity in addition to time consumption.
Key Features
- Employer monitoring involving snapshots, in addition to checking activity levels
- Clear record keeping of time distribution
- Integration with productivity and project management software
Best For: Business organizations that wish to monitor the performance of their employees and regulate onsite/hybrid/remote work properly.
💰Available on a free 14-day trial and paid plans starting at $6.70 per user per month.
Time Tracking Case Studies
To get practical, here are two examples showing TMetric as the instrument for improved productivity.
Case Study #1: The Small Bookkeeper, LLC
The Challenge that Business Faced: Small Bookkeeper needed a reliable solution for capturing billable time and then syncing it with QuickBooks Online. Aside from being accurate and easily integrated, they wanted a time tracker to be affordable.
The Solution: Through the integration of TMetric with QuickBooks Online, the team was able to overcome problems in time management. The program, with a Chrome extension, made it easy to track how much time was spent on each task, which made it possible to deal with clients’ financial issues.
The Result: Integration was found to have gone further in easing accounting processes as well. Productivity soared because hour billing was captured with precision, and it resulted in better invoicing and therefore, better satisfaction rates by clients.
Case Study #2: Cahill Strategies
The Challenge that Business Faced: Cahill Strategies wanted to optimize timekeeping and get a solution for better time management. Also, their goal was to build unbroken workflows so that employees could focus on demanding tasks.
The Solution: The firm chose TMetric for its simplicity and comprehensive functionality. The reports on team productivity were the tools that found really useful. Another point in favor of TMetric was Notion integration. It enabled a team to manage tasks and track time inside the app.
The Result: The team reported productivity improvement, which TMetric monthly overview of work confirmed. By prioritizing time tracking data analysis and leveraging TMetric integrations, Cahill Strategies considerably enhanced allocating resources and scheduling projects.
