Small and large businesses alike often rely on time tracking software to provide accurate payroll for their employees. Day-to-day management takes up a lot of time and it can be challenging for managers and owners to keep tabs on when their employees came into work, when they took lunch breaks and when they left at the end of the day. Adopting time tracking software is a good way to improve employee productivity and accountability.
Here are some tangible benefits to using time tracking software for your business:
Employees that submit their working hours are more likely to have better time management skills while performing their duties. Time tracking helps employees record the progress of their work in fine detail while ignoring the outside distractions that may typically be a hindrance (talking on the phone, browsing the internet, excessive socializing). Multitasking can decrease productivity by up to 45%, which can be detrimental to a company’s success. What time tracking does best for productivity is to highlight which projects at work are taking up too much employee time and it gives managers leeway to decide the risk vs. reward of spending time on each project. Many times, companies will start numerous projects and work on all of them at the same time. However, too much time spent on one project may not be worth it for the end goal; time tracking software can help managers identify and eliminate activities that aren’t crucial to progress and thus increase revenue.
A major component of team success is ensuring that each member of your team feels important and invaluable to the projects that you undertake. Members that don’t receive recognition for their work (no matter how big or small) may lack the motivation to put in 100% of their effort. Time tracking software establishes accountability amongst working teams because it informs their employers of important things like which employees completed certain tasks, when the jobs were completed and how much time was put into each job.
Time-tracking reinforces accountability within the employees themselves. When time-tracking is enforced, employees are more likely to complete jobs with increased efficiency and are more likely to hold themselves accountable for their progress throughout projects. Time tracking software isn’t used to intimidate, but to reiterate the importance of the job at hand and the need for dedicated, hardworking and honest employees.
Managers can dissect the hours their employees log and pick out trends such as which employee is the most productive. They can then use these analytics to push their team through times of decreased productivity and get the most out of their employees.
Of course, good work should always be recognized. It grants employers the opportunity to step down from a watchdog stance to appreciate and thank their team for their hard work and dedication to staying on task. Employee morale is an incredibly vital component to a hardworking team environment and investing in time tracking software can highlight accomplishments.
Managers allocate work for their employees to complete, but they often know very little about the working process. Time tracking software provides full transparency about the jobs being completed, how long they are taking to get done, and highlight which other tasks are being neglected. The transparency can allow managers to re-examine their employee's workload and provide them with the resources necessary so they can complete their duties quickly and efficiently. Tasks that are taking too much time to execute can be reconsidered by employers and optimized so that they do not disturb the working process. Time tracking software for companies allows managers to understand which parts of the project will require more employees and more man hours. Time tracking allows managers to plan ahead and schedule more employees on busier days and fewer employees on days where production is at a standstill. Time tracking software also opens a channel of transparency between coworkers. Employees that believe their department is carrying the bulk of the workload, while the other departments slack off and contribute nothing to the projects, will have a better understanding of the bigger picture. Employees can see in real-time which departments are completing tasks. Time tracking software can also make employees feel that their performance is not going unnoticed when it clearly shows on the software that they are finishing their tasks.
Punch Your Punchout Clock
The traditional way of keeping track of employee time spent at work, also known as timesheets, is expensive and impractical in this day and age. Timesheets and punchout clocks are an ancient way of keeping track of your employee's shifts and can require major adjustments at the end of the pay period. The accuracy that time tracking software provides both large and small companies is extremely valuable.
For companies that rely heavily on freelancers or contractors, time tracking software can provide accurate data on work tasks completed and the duration of their work.
The honour system is a great practice in theory; you build trust with your employees to come in on time, take their scheduled breaks, and stay until the end of the working day. However, it is impractical that each of your employees will report days that they arrive late to work or leave early. Your employees are not bad people, but you deserve the right to know the exact amount of money they are owed. Time tracking software can save companies thousands of dollars every year by adequately paying out their employees without error.
Not every company will host all of their working departments in the same building, same city or even in the same country. Many companies have offices and working stations in various places, which makes it nearly impossible to report to the same manager or supervisor about the work you’ve completed. Time tracking software provides companies with accessibility to every facet of their operation to ensure that work is being completed regardless of location. The major benefit of time tracking software is that it isn’t necessarily exclusive to any electronic device. As long as the employee/contractor has access to the internet, they can access the program on virtually any device including their cellphone, tablet, laptop or desktop computer. Regardless of your employee’s location, you can now keep track of their working hours and detailed reports about the work they’ve completed.
Increased Appeal To Buyers
Creating your business takes sacrifice, hard work, and years of planning and strategizing. Not every business owner wants to see out the lifespan of their company as they embark on different journeys and new opportunities. For business owners that plan on selling their companies, time tracking software can be an alluring selling proposition. For one, time tracking software establishes your credibility as a company that highly values time management and accuracy. This is a major selling proposition because it allows new ownership time to migrate their own means of time tracking and project management if needed. Time tracking software contains detailed records of each employee and the work they perform which can be utilized by new ownership groups to help gauge expectations and outputs from their employees.
Prevent Scope Creeps
Scope creeps can be a major disadvantage to any service industry company that did not properly analyze all components of a project. Scope creeps can end up costing you more money and more manhours based on newer requirements and roadblocks that pop up as you begin your work. With time management software you can plan for unforeseen expenses and additional work that you did not expect or see coming before you undertook a project.
Improved Employee Morale
Perhaps the most underrated aspect of time tracking software is that it can actually reinforce feelings of trust and respect in your employees that can improve their performance and overall productivity. When tracking software is absent from the working environment it presents a greater chance for micromanagement. Micromanagement can curb an employee’s morale as every aspect of their job is under constant inspection, which can be disheartening as they fear to make any kind of mistake for fear of repercussions. Employees for your company should view time tracking software as an additional channel of communication; it is essential that you frame the implementation of time tracking software as a tool to help develop skills and talents that your employees already possess. Every employee you have as room to improve and with this software you can provide wonderful feedback that will help them grow and develop their potential. Different employees have different strengths and weaknesses that can help you determine which employees should be given specific projects to ensure maximum productivity.
Is tracking time right for your business? Consult our guide to time tracking and learn more about the benefits.