Whether you have 10 employees or 10,000, keeping track of the time they spend working is difficult. Processing the weekly or monthly pay cycle becomes an administrative chore that’s time-consuming and labor-intensive.
At least, it used to be. Today, however, time tracking apps make it simple to automate the process from start to finish.
How important is it to use one of these apps? In this article, we’ll examine how time tracking works and the benefits for your company.
Why Tracking Time Works
Tracking the time your employees spend working is essential for accurate payrolls. In the past, we relied on manual systems where employees signed in and out. This worked to some degree but made it possible for team members to fudge the line.
The process of collating the sign-in sheets was time-consuming and came with the possibility of transcription errors. With time tracking apps, such errors are minimized.
What Are the Benefits of Automatic Time Tracking Apps?
There are several benefits to using a time tracking app.
Your staff doesn’t have to worry about manual sign-in sheets or working out hours worked. There’s no need for human resources to input and collate the data, saving hours of work every month. The software can do this quickly and efficiently.
With manual systems, mistakes such as transcription errors are easy to make when working out the number of hours. With time, employees simply log onto the system, and the software does the rest.
Time trackers are affordable and reduce the workload for your HR department significantly. You pay a great deal less per month than you would do if you hired an employee for this task.
Time trackers usually feature a series of reports that allow you to assess the profitability of each project accurately. You’ll be able to bill clients more accurately as a result and have better control over your budget.
When you bill per project, using a time tracker helps you to assign billable hours accurately. This, in turn, makes it possible to provide competitive quotes in the future and more accurately assess the timelines for each project.
Helps You to Set Clear Goals
You can track the status of a project quickly and simply. Create tasks and assign them to each team member, and they can mark them as they complete them. This leads to less confusion about who is doing what and when.
Employees sign in using assigned computers or smartphones. You gain insight into when their most productive and least productive times are. Employees also understand that you’re tracking them and so are more inclined to sign-in on time.
Better Project Management
Managers have accurate data about how long each task takes. They’re therefore able to manage their team capacity and similar projects in the future.
Employers and employees can see the number of hours worked per week by logging in. This allows for greater transparency about timelines and increased productivity. If a manager needs to hold an employee accountable, they have the information at their fingertips.
Clients also benefit by being billed for the exact amount of time you’ve spent on their projects. You can produce a report of hours worked for each task if they request it.
Simpler Payroll Runs
The software collates the hours worked and can populate these to your payroll system automatically upon authorization. HR can simply add each staff member’s rate, and the software does the calculations.
The system works out the overtime worked and other considerations.
Makes Things Easier for Remote Teams
Remote workers are better able to track their time, so there’s less need for them to stick to set hours. They’re capable, with your consent, of working outside of regular business times when they’re likely to be more productive.
A program that allows geofencing and sign-in time controls makes it harder for staff members to fudge the system. You may control where and when they’re allowed to sign in. This prevents team members from signing in earlier than they should or from a remote location where they’re not supposed to be.
You may go one step further and use biometrics like fingerprints to ensure that your staff logs into the systems themselves. This improves security and provides better control measures for human resources.
Are There Potential Downsides?
As with anything, there are pros and cons. The list of cons is short but worth considering.
Your Staff May Feel Micromanaged
It may take your employees a little while to get used to you monitoring their work in this manner. They may feel as though “big brother” is watching them.
However, it won’t make much difference to productive staff members. They’ll benefit by having less to do. Team members who will object the most are those who waste time at work not doing what they should. To overcome these objections, it might help to emphasize how the system improves accuracy.
May Not Be Ideal for Manual Workers
Manual workers, especially those working remotely, may not have access to computers and smartphones. This could make signing in and out a problem.
What Companies Benefit From Time Trackers?
Most businesses can benefit by using time tracking software. Your company may benefit as well if you:
- Bill your clients per hour
- Work with many different clients on a per-project basis
- Need to be able to monitor your employees
- Wish to improve efficiency and productivity
Small Businesses and Freelancers Benefit as Well
Keeping track of billable hours is essential for freelancers and small businesses. Automating this process cuts the amount of administrative work you need to do. This saves you time so that you can get more work done.
Time is money. Save yourself time and money by using a time tracking app. You’ll benefit through greater accuracy, productivity, and better project management. Your employees will benefit because there is less dull administration.
Finally, your clients benefit because you can provide more accurate and competitive quotes and reports on actual time worked. Automating this function is a smart business decision.