Building a Better Understanding of Employee Time Tracking

building a better understanding of employee time tracking

Every business must accurately track employee time and pay individuals according to their hours worked. Ensuring timely payroll processing and enforcement of attendance policies will avoid compliance issues and provide a professional company culture where every worker feels valued for what he/she accomplishes.

It's also essential to choose the correct time tracking system that saves time and resources rather than expanding them. Read ahead for a better understanding of the benefits of employee time tracking and the best ways to implement an optimized and automated system in the workplace.

Why is Time Tracking Important?

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Time tracking helps a small business gain insight into how each worker is spending his/her time on a day-to-day basis. It is essential for understanding workflow processes, minimizing inefficiencies, and finding ways to increase productivity and cash flow. The most important benefits include-

1. Personal Time Tracking
An optimized time tracking tool can help track digital time across mobile phones, personal laptops, and workplace computers. It shows which sites employees are visiting most frequently and how often they spend on each page.

The time for each site is placed in a category that employers can view at the end of the week to see productivity levels across the organization. Employees can use these insights to compare their personal productivity from day to day and then adjust their workflow to increase productivity.

2. Project Time Tracking
Organizations can also use tracking software to track employee project time and perform task management.

Software functionality that combines project management and resource management is capable of managing business activities and essential tasks for every worker. This provides important insights that help everyone to manage time more effectively in the future.

Some software tools can also use artificial intelligence to forecast future time estimates for a project. Each team member reports how long it took to complete a task and the software uses this historical data to predict future time data. This helps everyone plan for future projects by minimizing inefficiencies so work can be completed as efficiently as possible.

3. Helps with Resource Allocation
Time tracking devices also help businesses allocate their resources more effectively. Tracking apps show which department is most efficient and which team members need more resources to complete their jobs.

Software tools generate informative reports that use powerful visuals to show management in which team members bring the most value to the business.

Owners can use these insights to reward productive employees, work with struggling ones, and hold everyone accountable to meet their key performance indicators.

4. Streamline the Business
Time tracking helps each department work together to achieve a set of important shared objectives that help the business also meet its goals.

Working together as a team to complete tasks promptly helps streamline all of the workflow processes throughout the organization. Department managers and executives can use time data insights to gain an accurate picture of the team's performance and productivity so resources can be allocated in the most proficient way possible.

How to Track Employee Time

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Choosing a high-functioning attendance tracking system that is intuitive and user-friendly is essential to collect accurate time data and comply with labor laws and regulations. Here are the best ways for an organization and the HR team to track employee time-

1. Use a Mobile Attendance System
Use an optimized time tracker to track remote worker time and hold all team members accountable. Some mobile tracking apps even integrate with GPS systems to let management know where their workers are when they clock in for the job.

2. Use a Card Swipe Mounted on a Wall
A card swipe is the newest form of a punch card system. Employees use an ID card to swipe through hardware mounted on a wall. The system collects the punch-in data so the HR team can use it later to verify hours and make accurate payments.

3. Purchase an Automated System
Purchase an automated system that collects real-time punch-in data to comply with state laws and the Federal Labor Standards Act. This should make it simpler to conduct accurate and adequate recordkeeping and avoid noncompliance issues. It will also save the HR staff a lot of resources and time so they can focus on other tasks.

4. Use a Self-Service System
Allowing workers to be in charge of their own time will free up the HR team so they don't have to spend resources verifying timesheets and checking rates for overtime hours. Employees will be able to record and review their worked hours to ensure they are meeting the standards set for them by the company.

Workers can also request time-off or check to see if they are eligible for a vacation day. This also saves the business time because they don't have to constantly answer and research employee questions about their hours.

5. Purchase Cloud-Based Software
Cloud-based software allows businesses to track time without purchasing an expensive software system. Cloud-based solutions are a less costly alternative that holds more data than most in-house systems and provides an easy way of entering hours and making approvals.

6. Use a Biometric Time Clock
A biometric time clock uses human traits to verify a person's identity. There are fingerprint time clocks, facial recognition clocks, iris clocks, and more options available to both small and large businesses.

These systems automatically capture data and prevent buddy punching by forcing the person that clocks in to use a personal trait to do so. Biometric time clocks can integrate with mobile devices so workers can clock in whether they are in the office or off-site.


In conclusion, here are the key takeaways to remember about employee time tracking-

  • Time tracking gives an organization insight into how each worker is spending time throughout the workday. Utilizing an effective time attendance system will give valuable insights that are useful for making decisions that affect productivity, the bottom line, and efficiency.
  • Other benefits of time tracking systems are that they track personal time, track project time, help allocate resources effectively, and streamline workflow processes.
  • Tips to track time include using a mobile attendance system, use a wall mount card swipe, purchase an automated system, use a self-service solution, purchase cloud-based software, and use a biometric time clock.