Benefits of Time Tracking

Benefits of time tracking talks about how businesses can get benefitted using a time tracking software.

Below we’ll discuss some of the benefits of time tracking that businesses experience when they start tracking their employees’ time using time tracking tools.

Visibility Into What Employees Are Doing and When

As mentioned previously, some of the most common problems businesses face are time theft and “buddy punching.” These problems are more prominent in businesses that track time using paper timesheets or punch cards.

However, when you’re tracking employees’ time using a more reliable method, like a timekeeping app that monitors activity levels and idle time, it’s exceedingly harder for them to commit time theft.

Also, you’ll be able to see what each of your employees is working on and how long it took them. This is especially valuable to employers who have mobile or remote teams where monitoring them is physically impossible.

Additionally, timekeeping apps are valuable employee attendance trackers. You’ll instantly see who wasn’t tracking their time and on what days. And you’ll have visibility into who didn’t complete their shifts and how long they worked.

Now that’s one of the biggest benefits of time tracking software.

Helps Streamline Payroll

Time tracking tool generates accurate employee timesheets that you can access online. You won’t need to worry about spending hours correcting timesheets or tracking employees down to request them. If you use time tracking software, you’ll have access to all your employees’ timesheets and related details, including how much to pay them based on their hourly rate.

Helps Streamline Payroll

Better Team Management

Without insight into how much time your employees are working on projects, you’ll never know if there’s a way to increase team efficiency. A time tracking tool shows you how much time each employee spent working on tasks and projects. And by using one, you’ll know whose hours are crossing over into overtime and are close to burning out and which employees are available to take additional work on.

Besides discerning where you have an overstaffing and understaffing problem, time tracking tools also show you the strengths and weaknesses of your employees.

When your business has been using a time management app for your employees for some time, you’ll have a baseline of how much time it takes to complete certain tasks. For instance, if you have a team of graphic designers, and on average, it takes each of them a day to produce five wireframes and three designs, that’s your baseline.

With this baseline, you can see which of your graphic designers is or isn’t living up to these expectations. Employee A can produce five designs a day but only two wireframes. On the other hand, Employee B produces six wireframes a day but only two designs.

By using this information, you’ll know your employees' strengths and can assign design creation to Employee A and wireframing to Employee B for better team efficiency.

Better team management

Boost Employee Productivity

Besides assigning employees work that aligns with their strengths, tracking their time increases their productivity. That’s one of the major benefits of time tracking. When they’re working, it’s hard for employees to know how much time it actually took them to complete a project.

By tracking their time, they’ll see if they’re spending too much time on tasks that aren’t profitable or billable. They might notice trends in their workday that hinder their productivity and can create a work process that reduces distractions that alter their focus.

More Accurate Estimates

It’s practically impossible to create accurate estimates for project time and budget without reliable data to use as a baseline. However, by tracking employees’ time and resources spent on their projects, you’ll be able to make accurate estimations on similar projects in the future.

More accurate estimates result in projects being completed by the deadline and not going over budget, which leads to more successful projects.

More accurate estimates

Improve Profitability

Hours time tracking apps help you determine if clients you take on are worth it. How much time are your employees working on a client’s project? Is their project time intensive? Are they using up too many resources?

Through effective time tracking and reports, you can conclude which clients are profitable and which clients aren’t.

Additionally, if you’re noticing that some projects naturally use up more time and money, you’ll be able to spot trends and decide if it’s time to increase your prices.

Time tracking can certainly be used for more accurate payroll processing and creating a trusting relationship between employer and employee. However, it serves a deeper purpose that most businesses need to help them prosper.

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