Employee Time Tracking Software- Basics and Benefits
Introduction to Employee Time Tracking Software
Each hour of the day is critical for businesses. As the saying goes, time is money, therefore, owners and managers need to actively monitor their employees' work hours. Not tracking time could result in lost profit and unproductivity. In fact, surveys have shown that 50% of people do not track their time when reading and answering emails. In addition, 20% stated they do the same for meetings. For an average service business, this costs over $110,000 in lost revenue each year, according to experts.
Organizations of all functions and sizes can implement an employee time tracking software system to prevent these losses. For example, a small business can use these web-based tools to ensure customers are effectively served. On the other hand, a call center can use them to monitor their remote employees and cut labor costs. The best solutions can also help increase productivity and improve operational workflow, as well as provide other key benefits.
Basics and Benefits of Employee Time Tracking Software
Employee time tracking software is an online system and mobile app that businesses can use to track employee work hours. Users can access the software with their smartphone, browser, or computer to set timers or log in their hours. A fundamental function of these solutions is to automate payroll and billing and to ensure accurate wage calculations. Depending on the software provider, automatic time tracking tools will come with add-on features. These capabilities help businesses optimize their operations and workflow.
For example, most software systems will have data analytics, project management, and activities tracking features. Generally, vendors will offer these tools for an added cost, in addition to a monthly subscription price. Business owners should do their due diligence when choosing time tracking software platforms. This entails assessing reviews, costs, budgets, and identifying operational needs. Once they pick the right one for the company, the teams can reap many benefits, including the following.
1. Enhance Workplace Efficiency
A time tracking software solution empowers employees with data about their productivity and output capacity. They can use these insights to examine their workflow and improve their overall efficiency. For example, they can identify time-consuming tasks and scheduling them during the day when they have more energy. The time tracking app can also notify employees about their rest and meal breaks. This will ensure they are recharging physically and mentally, which will help them complete tasks more efficiently.
2. Assess Team Productivity
A tracking solution has features that enable users to monitor every activity throughout the workday. This includes meetings, phone calls, talking to customers, and commuting. With this information, management teams can have full visibility into all the tasks that their staff completes. They can then pinpoint delays and productive processes, as well as slow-moving activities. Awareness of these factors can fuel improvements, better allocation of resources, and optimization.
3. Streamlining Client Billing and Invoicing
Employee time tracking apps guarantee billable hours are recorded accurately. This streamlines the process of invoicing and billing customers. Most systems will have this feature built into the software. However, sometimes tracking tool providers will have integration compatibility. This means users can sync their tracking tool to their existing billing system and automate the data migration process.
4. Access to Valuable Data Reports
The best time tracking app will have data analytics capabilities, in which it collects metrics and create reports. Some tools can also automatically generate data visualizations, making valuable measurements easy to read. With this feature, managers can learn about time spent on assignments, activity trends, and employee productivity. These reports will enable executives to make informed, data-driven decisions for their business.
5. Promote Employee Accountability
Employees can hold themselves accountable with a time tracking solution. These solutions provide clear visibility of when staff clocked in and out and how often they take breaks. Both managers and employees can also assess how many assignments or tasks they completed while on shift. This will encourage staff members to be responsible and not procrastinate.
6. Automate Payroll Procedures
Time trackers can be synced to payroll software or have a similar feature built into their system. This will automate the employee compensation process, allowing businesses to ditch traditional methods of data entry and manual calculations. Additionally, time tracking apps will ensure payroll accuracy. This is important because employees will be more satisfied knowing they are paid fairly and correctly.
7. Protect Your Bottom Line
Time tracking tools empower management teams to oversee their financial standing and protect the business's bottom line. For example, they will have access to data regarding labor costs, project completion, and profits. They can then compare their human resources to revenue and make adjust employee schedules accordingly.
8. Identify Top-Performing Employees
Employers can identify top-performing employees who have accomplished a high volume of tasks in an efficient timeframe with time trackers. This makes awarding and incentivizing staff members easier. Morale and motivation among employees will also improve if they know that the company recognizes their hard work. In turn, this will decrease turnover rates and boost employee retention.
Key Takeaways to Employee Time Tracking Software
- Employee time tracking software is a web-based tool that monitors employee work hours. Business teams and managers can access the software using a mobile app, smartphone, or browser.
- Tracking employee time is important because unaccounted activities during the workday can result in lost profits and productivity.
- Time tracking systems have many functions other than recording tasks and hours. It can be synced with payroll, employee scheduling, and project management features and software systems.
- There are many benefits to using time tracking software, such as improving productivity, automated billing, and data reporting.