Employee Time Tracking Software | 4 mins read

Why You Should Be Using Employee Time Tracking Software

why you should be using employee time tracking software
Mary Kate Morrow

By Mary Kate Morrow

Clear Benefits of Employee Time Tracking Software

At its most basic level, employee time tracking software tracks employee hours spent in the workplace. However, with ever increasing technological advancements, employee time tracking software and tools are becoming more and more exceptional over time.

Contemporarily, the best time tracking software and tools can help with a wide range of business processes. As such, more small business and large corporation owners than ever before are investing in and implementing tracking software for their businesses.


Significant benefits of employee time tracking software include-

1. Payroll Process

Manual payroll processes are well known for being time consuming, tedious, and susceptible to errors. The manual payroll process, including retyping time entries and time card collection, can be a massive drain on both employee time and employee productivity levels.

The best time tracking software can automate many of the payroll related tasks that previously needed to be performed manually. Whether payroll is handled by a professional services third party firm or by a separate department in house, simple time tracking tools and software programs can save much time for payroll processors.

Online employee scheduling software that makes shift planning effortless.
Try it free for 14 days.

2. Top Talent Retention

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Both large corporations and small business owners alike know how important top talent employee retention is. Through the use of tracking software and tracking tool solutions high performing hourly employees are financially compensated for the extra time and effort they put in.

Additionally, when employees do not have to manually recheck their compensation for human errors they are much more confident in their employer's capabilities and professionalism. The best tracking tools and software programs even display visual reports and calendars for employees to view their work hours in a more user friendly format.

The ability to clearly see how employee time is spent in the workplace further motivates team members to utilize their best time management techniques.

3. Financial Insight

Both large corporation and small business owners know it is essential to understand how profitable their organization actually is. Employee time tracking allows management and business owners to view how much employees are costing per month in comparison with their output.

For example, the best employee on staff may only cost a very low sum per month in comparison with the profit that their work generates for the company. When evaluating the profitability of a specific employee it is helpful to analyze billable hours in comparison to hours worked in total.

4. Employee Accountability

Employee accountability is an essential component of any successful business. A time tracking tool helps employees stay on track and focused at the workplace.

Time tracking software is also a great time attendance tool for employees and employers alike. When late arrivals, overly long breaks, and early departures are recorded, employees are aware they must be accountable for their own time attendance record.

Online employee scheduling software that makes shift planning effortless.
Try it free for 14 days.

5. Client Billing

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Especially for businesses that bill clients directly through invoices, time tracking features are incredibly valuable. Billable hours and project time totals are referencable through easy use employee time-related software programs and tools.

Tracking features include the ability to view accurate time data regarding how much time both individual employees and collective team members spend on a task or project. These automatic time entries keep businesses organized and assist with proper real-time invoicing capabilities.

The best time-related software programs and tools may contain a built-in invoicing system. Built-in tools save employee time on tasks like-

  • Manual time entry
  • Timecard review
  • Employee scheduling
  • Time clock approval
  • Business expense tracking

6. Workplace Efficiency

Time tracker tools are a great resource for improving and maintaining employee efficiency in the workplace. A time tracking solution can show exactly how employee time was spent on any given workday and help employees to make the most out of the time they spend on the clock.

Tracking software can identify places when employees are not being provided enough time to recharge or have unhealthy work life balances. An unhealthy work life balance not only decreases employee efficiency but also employee productivity levels.

For example, if an employee clocks out for their lunch but then ends up working through it, they will not be properly recharged at the conclusion of their break. Or, if an employee is consistently spending late nights working, they may become increasingly inefficient and even burnout.

7. Team Workflow

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Beyond evaluating individual employee time data, time tracking software monitors everything from meeting minutes to tracking project times. As a result, both small business and large corporation owners can identify and address team workflow gaps.

When team members use time best together and individually, everyone in the company will benefit as a result.

Key Takeaways

  • Both tracking apps and software programs are immensely beneficial for both small businesses and large corporations.
  • Benefits of time tracking app and software usage range from easily tracking employee hours to a decreased need for employee monitoring by management.

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