Time clocks and timers have been used in one form or another throughout history. The sun and the moon were once the only points of reference for early man to estimate time and plan for the day. Thankfully, time tracking has come a long way since these bygone days.
In 1949, scientists hailed the atomic clock as the most accurate timekeeping device because it was based on the spin property, which is an element of quantum mechanics. This invention gave rise to other improvements in time tracking, including the automatic software trackers and timekeeping apps used by small and large businesses today.
Now, thousands of employers are benefitting from timekeeping apps and software that collects punch-in data, analyzes time spent on tasks, and makes life simpler for the human resource department. Read ahead to see how modern technology has improved timekeeping and why a tracking app is beneficial in the workplace.
10 Key Reasons Why Timekeeping Apps are Beneficial
Small business owners, freelancers, and larger corporations utilize some form of time tracker within their organization. Time tracking software tracks the time and resources allocated to a particular task by one or more employees. Modern tools have functionality that allows workers to manage their own time so the HR staff can focus on other aspects of their job.
Tracking time allows businesses to measure and evaluate productivity on an in-depth level. Software tools collect data that allows management to use objective metrics to find inefficiencies. This provides a way to problem solve and make improvements across the entire organization.
1. See How Employees Spend Their Time
It is human nature for even the most productive workers to slack off on occasion. Department leaders may trust their team completely, but evidence shows that 43% of hourly employees have exaggerated their hours worked at some point.
Time tracking software provides a way for management to have a complete picture of how workers are spending their time and how long it takes to complete projects. Management can track the productivity of each app on a user per month or user per week basis. These insights gained from a mobile app are useful to hold employees accountable and work with those who aren't finishing tasks in a timely manner.
2. Conduct Project Management
Time tracking devices allow management to see how long it takes each worker to complete a task.
A software time tracker helps to properly allocate resources and organize better project management so everyone is completing workflows within a reasonable time frame. Employers can use analytics to see the productivity of each worker on a per week or per month basis.
Time tracking project devices provide a way for freelancers to give accurate estimates to employers so they can be paid properly. This prevents accidently overpaying or underpaying remote workers and possibly violating labor laws or the terms of a contract.
3. Save Money
Wary customers aren't always certain that they are receiving the services/products they paid for. Taking the company's word is not always the most helpful way to make clients feel comfortable. Fortunately, employers can use time tracking software to bill clients for the precise number of hours worked on a project.
Reporting and visuals can be used as proof to show often-skeptical customers where time and resources were allocated and how much. Management tools save money and minimizes waste because employers will no longer be spending extra money and time on non-accounted hours.
4. Management No Longer Has to Micromanage
Most businesses are trying to find technology that automates labor intensive tasks so there is more available resources for other projects. Many tracking software tools are automated and provide real-time insights into employees' time data.
Employers no longer have to constantly check on workers or ask them to send a report that breaks down their hours. Less micromanaging puts the onus of time management on the worker instead of the employer. Management software also boosts employee morale and frees up time for management to work on other tasks.
5. Instill Motivation and Discipline in Workers
Even the most productive and motivated employees can find areas that they need to improve upon. No employer wants to use guesswork to determine who is doing their job and who isn't. Performing self-service, productivity based time tracking lets workers continue to hold themselves accountable and achieve goals.
Department managers can create specific metrics for each individual person and give them an expected time frame to meet them. Time data can be used later to discern whether or not those objectives were met. For those unproductive employees, management can create disciplinary actions that continue to hold them accountable.
6. Manage Pricing
Knowing how much to price clients can be a challenge. It's important to maintain a profit without overcharging and tempting the client to run to the competition. Data analytics is a beneficial feature of time tracking software as it helps businesses reconsider their pricing strategies. Reporting capabilities utilize powerful visuals to tell a story about how pricing is affecting the company's bottom line.
Management can analyze data to see the average time spent on a task or project. They can then deduct the staff salary for that time frame and other incurred costs to decide if the current price will generate a profit. If not, it's time for the business to adjust their rates.
7. Integrate with Payroll
Integration capabilities have streamlined work for countless businesses across the country. Instead of managing several databases, most employers can use software that connects to other essential systems. Connecting time data with a payroll system is an excellent way to cut expenses and make life easier for HR clerks.
A time tracking solution provides a full view of what's happening in the salary department to see if workers are paid appropriately for their hours.
Finally, collecting accurate time data makes it easier to comply with confusing labor and tax laws as many of these systems automatically update and adjust for a new regulation. HR staff no longer has to worry about researching laws or hiring outside help to ensure payments are accurate and compliance is met.
8. Improve Planning and Budgeting
Predictive analysis is essential for businesses who want to grow and learn from mistakes. Forecasting is useful to understand historical data and how it might affect future sales or marketing strategies. It provides a way to make adjustments and plan for future workflows so work is streamlined across the organization.
The data and insights gained from time tracking software will help to plan for future projects and find cost savings opportunities. The data gathered from work estimates, rates, and project timelines can help balance the budget and cut back on waste in the future.
9. Track and Manage Efficiency Levels
Workers want to feel appreciated for the hours they put in. If hard workers are not recognized, morale drops and productivity decreases. Utilizing tracking software helps to show who deserves recognition and who needs more monitoring.
Collected data delivers valuable insights for managers who are looking to pay workers accurately and fairly according to their quality of time spent. If employees know that there is a financial incentive to remain productive, they will continue to use their time wisely.
10. Integrate for Convenience
Most tracking solutions can integrate with mobile phones, payroll, or project management databases. Management can check time data whether offsite or in the workplace. Quick decision making will become more possible as insights are easily gained from easy access to information.
In a competitive landscape, the ability to make quick business decisions is essential. Time tracking software has functionality that is automatic. This increases convenience and creates a culture where everyone is better informed of what's happening in real-time.
In conclusion, time tracking software provides many benefits that allow businesses to drill into data, gain insights into worker productivity, and find cost savings opportunities. Automated features free up resources for the HR team and prevent non-compliance with labor laws and regulations. Here are the main takeaways to remember-
- Businesses can track an employee's work time and see who needs more assistance to meet their key performance indicators.
- Time tracking systems make it easier to see how long employees work on projects and track time based on a per user per month productivity basis. This helps to manage projects and plan for future projects.
- Businesses will save money by billing clients for exactly the number of hours worked on a project.
- Management can stop micromanaging workers and start focusing on more important tasks by utilizing a tracking tool..
- Time tracking software holds employees accountable and boosts morale in the workplace. It will instill motivation and discipline so workflows are managed and streamlined properly.
- Businesses can use time data insights to decide whether or not to adjust rates.
- Time data can be integrated with payroll systems to streamline HR work and make it easier to comply with labor laws.
- Planning and budgeting will improve as data insights help to propose future time management strategies.
- Efficiency will be easier to manage as workers are held to account for all of their time spent on each project.
- It is more convenient to utilize an automated time tracking app that tracks time than a manual system that requires more intensive labor.