Why Does Your Business Need Employee Time Tracking Software?
By Veriato - August 14, 2020
How do your employees submit their timecard each pay period? If the process includes an ink stamp or a wet signature, you could be losing thousands of dollars per employee per year.
Can making the switch from manual timekeeping to employee time tracking software really influence the success of your company?
Absolutely, timekeeping is one of the most essential functions for any size of the operation - from profitability to employee productivity. Read on to learn how automating this process can help your company save time, money, and stress with every payroll authorization.
What is time tracking?
Time tracking is the task of measuring work hours to ensure that employees are paid appropriately for their time on the clock.
In order to know how much you need to pay hourly employees, you have to know how many hours they worked.
In America’s increasingly remote workplace culture, timekeeping is an even more essential piece of the puzzle. Eliminating the need to work from a specific location makes the primary function of any virtual employee fully production based. In other words, the work you see is the work they’re being paid for.
Time tracking software provides remote and onsite employees a way to accurately, transparently, and efficiently record their billable hours.
How can I track my employees’ time?
Traditional time tracking methods usually included a start and stop time for the day, possibly including a break or two throughout the day.
Employee time tracking software allows you to measure your employees’ active working time on a granular level. Not only can you account for breaks and leave, but you can also measure the amount of time employees spend on a particular project.
This level of time tracking can be exceptionally beneficial for creating project timelines and organizational plans. You can better allocate labor and resources when you know exactly how long a task will take to complete.
Why should I use time tracking software?
Automated time tracking is an easy solution for streamlining the payroll process, but this tool can also help employees learn how to better manage their time.
By highlighting periods of slow production or idle time, employees can see exactly where they need to improve. Or, this gives the employer the information needed to reassign tasks to better match worker strengths.
Reducing redundant, repetitive, or incompatible tasks will free up time in the employee’s workday for tasks that they are passionate about or require a higher level of creative input. Increased innovation works to benefit the organization as a whole.
Take a look at some of the key ways that employee time tracking software can drive the success of your organization:
You might have an idea of the workload your business is currently managing, but what if you’re paying for work that isn’t being done? Or, what about busywork that isn’t actually contributing to the growth of the workplace?
Time tracking is an important part of any project management process, as it allows you to truly understand how much time workers spend on their tasks. But, there’s a right way and a wrong way to approach time tracking.
Manual time tracking is prone to error and inconsistencies since the accuracy of this method depends entirely on the data inputted by the employee.
Time tracking software, on the other hand, is based on objective data that is collected through methods like:
- Screenshots and video capture
- Recording web search history
- Geolocation tracking
- AI-powered user behavior analytics
These capabilities are what make employee monitoring software an exceptional tool for HR, accounting, and even reinforcing positive company culture.
Eliminate time card theft and “buddy punching”
Have you ever noticed an employee clock in for an absent worker? This is actually a form of theft that can cost your company thousands in stolen revenue.
Timecard theft is the act of recording more hours on one’s timecard than were actually worked. “Buddy punching,” or clocking in on behalf of a co-worker, is a common form for timecard theft.
While you might think that you can trust your employees enough to let them fill out their own timesheets, this trick could be costing your company thousands of dollars a year - per employee.
Additionally, managers can contribute to inadvertent or intentional timecard theft by inaccurately approving their teams’ work hours.
Cloud-based employee time tracking software can be reviewed securely either remotely on in-network, preventing approval delays and oversight during the payroll process.
Employee time tracking software records this data automatically and is connected to the user’s device. This removes the possibility of someone else “clocking-in” for a friend.
Provide accurate quotes and project timelines
Timekeeping software isn’t just beneficial for internal employees. Clients will also appreciate being able to receive an accurate, instant estimate instead of a ballpark quote.
Time tracking software to assess, to the minute, how long projects and tasks take to complete. This allows you to create accurate plans in far less time, without having to perform the legwork of tracking employee progress manually.
Streamline accounting processes
If your accounting team is accustomed to sending reminder emails every pay period, you’re likely aware of the issues manual timekeeping processes can cause.
Automated time tracking reduces accounting errors and prevents processing delays by removing the human element from the equation. Instead of relying on employees to complete their payroll paperwork accurately and on time, the system will objectively record their time for them.
Employee time tracking software also provides employers with a more comprehensive account of how their workers are spending work hours. Instead of simply recording their clock-in and clock-out times, time tracking software can also determine:
- How long employees spend on a particular webpage
- Active and idle session duration
- Whether or not an employee is remaining on task
- Slowdowns that can indicate other issues, such as poor communication or lack of direction
Using an employee time tracking app is the easiest tool for a transparent and effective timekeeping system. Try Veriato for free to see for yourself how comprehensive employee time tracking software can transform your business.