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The Benefits of Implementing Time Tracking for Employees

Check out this guide for implementing and understanding the benefits of time tracking to manage your workforce.

Blog Author - Keertana Anandraj
Keertana Anandraj
Oct 19, 20234 minutes
Blog Author - Keertana Anandraj
Keertana Anandraj

Keertana Anandraj is a part-time freelance writer and full-time sustainability analyst. Before Justworks, she began her freelance career writing for The Financial Diet and Career Contessa. She currently resides in New York City.

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In today's fast-paced business world, efficiency and productivity are the keys to success. To achieve this, organizations must find ways to maximize their resources, and one crucial aspect of resource management is time tracking for employees. Whether you run a small startup or a large corporation, implementing time tracking can revolutionize the way you manage your workforce. In this blog post, we'll delve into the myriad benefits of time tracking, including project tracking, and explore how you can seamlessly introduce it into your workplace.

Benefits of Time Tracking for Employees

Increased Productivity

In a world full of distractions, maintaining focus can be a Herculean task. Many time tracking programs have project-tracking features, which can help employees stay on track by creating a sense of accountability. When supervisors are able to review information about how employees are spending their work time, they are in a better position to help employees stay productive at work. 

Project tracking also serves as a useful tool for managers to identify issues that interfere with productive use of work time. Identifying these culprits is the first step toward better time management. With the data collected through time tracking, employees and managers can spot patterns and make informed decisions about how to optimize their workdays.

Accurate Project Estimation

For businesses that rely on project-based work, accurate estimations are gold. Some of the functions of Time Tracking allow you to see how much time employees spend on a project, which can then help you make more precise predictions about how long a project will take and how many resources it will require. With this information, you can set realistic deadlines, manage client expectations, and allocate your resources efficiently.

Plus, by having insight into how employees allocate work time to different projects, managers can help employees with more effective task prioritization and project planning. It's like having a crystal ball that helps you identify bottlenecks and resource shortages, allowing you to proactively address them.

Improved Billing and Payroll Processes

If you've ever had to deal with client disputes or employee grievances over payment, you know how crucial accurate time tracking is. Having accurate information about hours worked streamlines payroll processes by providing precise data for wage calculations. By implementing time tracking, organizations can significantly reduce errors related to time-based compensation. This not only saves time and resources, but also enhances employee satisfaction as they receive appropriate compensation.

Similarly, having information about how much time employees spend on a project helps ensure that you bill clients based on actual hours worked. This can reduce disputes and enhance client relationships. 

Types of Time Tracking Methods

Now that we've explored the benefits, let's look at the various methods for tracking time.

Manual Time Tracking

Manual time tracking involves employees manually recording their working hours, typically using timesheets or spreadsheets. While it's straightforward, manual tracking can be prone to errors or inaccuracies due to human factors — like employees sometimes forgetting to complete or submit their timesheets. This manual method is more suitable for organizations with relatively simple tracking needs, such as organizations that have smaller teams that all work in one office. 

Automated Time Tracking

Automated time tracking uses software or specialized tools to automatically record employee working hours. All employees have to do is enter their start and stop times and beginning and end of meal periods. The software or specialized tools do the rest. Automated time tracking systems offer real-time tracking, eliminate the need for manual data entry, and reduce the risk of errors. Automated systems also provide potential access to detailed insights and analytics, which can empower better decision-making.

Mobile Time Tracking

In our mobile-centric world, mobile time tracking is gaining popularity. It allows employees to track their time using mobile apps on their smartphones or tablets. This method offers flexibility and convenience, especially for remote or field-based workers, and ease of administration for organizations who employ such workers. Additionally, it can incorporate location-based tracking, which enables verification of work hours for employees on the move.

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Implementing Time Tracking in the Workplace

Now that we've covered the benefits and methods, let's explore how to effectively implement time tracking in your organization.

Define Clear Policies and Guidelines

Before rolling out time tracking, it's crucial to establish clear guidelines on how time should be tracked and recorded. It’s also important to communicate the purpose and benefits of time tracking to your employees. Make sure to address any concerns or resistance upfront to ensure a smooth implementation process.

Choose the Right Time Tracking Software

Selecting the right time tracking software is pivotal. Take the time to evaluate different options based on your organization's specific needs. Consider factors such as ease of use, integration capabilities, and reporting features. It's also beneficial to involve key stakeholders and gather their input before making a final decision.

Provide Training and Support

Implementing new systems can be challenging for employees and managers. To ease the transition, conduct training sessions to familiarize your team with the time tracking software. It’s also a good idea to offer ongoing support and assistance to address any issues or questions that arise. Encourage feedback and suggestions to continuously improve the time tracking process and make it more user-friendly.

How Justworks Can Help

While the benefits of time tracking are clear, finding the right software for your organization can be tricky. Enter Justworks Time Tracking! With Justworks, time tracking can seamlessly integrate with your other HR processes. The simple mobile app empowers employees and increases accountability with automated alerts, pre-set reminders, and project tracking features. This makes onboarding a breeze, regardless of whether your employees are hourly, remote, contracted, or a mix.

What’s more, the automated features allow you to maintain consistency, share data across systems, and leverage reporting with insights to help manage your team. Justworks Time Tracking even helps you manage state-specific requirements such as overtime laws or break time with features that are built into the software.

From increased productivity and accurate project estimation to streamlined billing and payroll processes, the advantages of time tracking (and using Justworks to get it done) are undeniable. Don’t wait — get started today.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.
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Written By
Blog Author - Keertana Anandraj
Keertana Anandraj
Oct 19, 20234 minutes

Keertana Anandraj is a part-time freelance writer and full-time sustainability analyst. Before Justworks, she began her freelance career writing for The Financial Diet and Career Contessa. She currently resides in New York City.

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