UNITED STATES—As remote working is becoming more commonplace across the world, businesses are looking for ways to manage their workforce more effectively.
Monitoring the day-to-day activities of employees and the status of projects can take a lot of precious time that could have been used more productively elsewhere. That’s why many businesses are implementing employee time tracking software.
It’s no secret that time tracking enables businesses to manage projects and employees more effectively, but there are many knock-on benefits as well.
Here are ten reasons why you should consider incorporating time tracking software into your business management strategy.
1. Maximize Profitability
By accurately tracking the time employees spend on projects, it’s easy to see what the business’ money is spent on. Time tracking allows you to budget more effectively and reprioritize tasks if the payoff isn’t meeting expectations.
Time tracking empowers managers to make decisions based on data – for instance, a manager may decide to eliminate auxiliary activities that are taking up too much of an employee’s time. Ultimately, when activities that don’t contribute directly to the most profitable project are eliminated, it increases revenue for the company.
Gaining valuable insights into exactly how many hours are required for different tasks and projects makes assessing whether a business is turning a profit or not more straightforward.
2. Improve Productivity
When employees track their time effectively, they can manage their time more efficiently. Time tracking also allows managers to weigh up the risk vs. reward of certain activities when they can see exactly how much time it takes to complete a task and identify areas that need improvement.
Time tracking allows employees to record their progress on a project from beginning to end, without taking into account other distractions (like browsing the internet or talking on the phone). This information makes project management more effective.
3. Increase Accountability
Time tracking increases accountability in a work team because it records who completed which tasks, how much time they spent on them, and when the project was completed.
Managers can analyze this data to spot trends and see which employee is more productive. Employees also tend to hold themselves more accountable when time tracking is enforced.
The data also makes it easier to give hardworking employees recognition and incentivize them, which helps the manager get the most out of their employees.
4. Prevent Scope Creep
Effective time tracking can allow a business to plan for additional work and unforeseen expenses. Scope creep happens when all the project’s components were not correctly analyzed before initiating the project, and it can cost businesses a lot of money.
Projects may require additional man-hours that initially weren’t planned for, or the project requirements may change. With time tracking, it is easier to anticipate potential roadblocks.
5. Schedule Projects More Efficiently
Because time tracking enables managers to see exactly how many hours go into a job or task, it is easier to track the status of projects and anticipate deadlines – this allows for improved client relations and makes it easier to manage expectations.
Analyzing the data from employee time tracking software may also prompt a manager to adjust the schedule. If there is a consistent pattern of missed deadlines across all employees, there may be a need to change the schedule to a more realistic timeframe or provide additional resources.
And if the workload is lighter at certain times of the year or for specific projects, a manager can plan ahead and schedule fewer employees on these days, saving on man-hours and ultimately saving money.
6. Increase Transparency
While managers assign tasks for the employees to complete, they often don’t have a good idea about what the process of finishing a job or task entails.
Employee time tracking allows full transparency between managers and employees. A manager can see exactly how long a task is taking, what still needs to be completed, and which tasks are being neglected.
Based on the data, a manager can re-examine an employee’s workload and give them the resources to get the job done more efficiently or reprioritize tasks that are taking too much of an employee’s time.
Managers can also understand which components of a project will require more man-hours or employees, and they will be able to schedule accordingly.
7. Monitor Remotely
Many businesses have different departments, offices, and employees in different places, making reporting to one manager difficult.
Time tracking software can be employed on many devices such as tablets, laptops, mobile phones, and desktop computers as long as the employee is connected to the internet.
Time tracking allows managers to access reports from every aspect of the company, wherever they are. Managers can monitor projects remotely, keep track of employees, and stay informed on the status of projects.
8. Review Team Performance
The data from time tracking software enables managers to make informed decisions about employee reviews and overall team performance. Individual employees can be compared to other employees to set performance benchmarks.
Seeing how other team members compare is also helpful for employees because it allows them to identify strengths and areas that need improvement. Reports will clarify objectives and expectations and enable employees to receive recognition when they meet or exceed them.
9. Boost Employee Morale
Time tracking can benefit employees by increasing trust and reducing micromanagement. When employees have clear objectives and incentives, they are empowered to improve their performance.
Time tracking software should be seen as a powerful tool that enables effective communication and accurate feedback. While all employees have their own strengths and weaker areas, time tracking helps managers allocate projects to those most suited to the job, which leads to an overall increase in employee morale and productivity.
10. Bill and Pay Accurately
With time tracking software, managers can easily keep track of contractors and freelancers. By monitoring a contractor’s hours and workload, it’s easier to budget for their services accordingly. Accurate records of billable hours will ensure that you only pay for the work done and monitor their performance.
The insights from time tracking software will also determine whether clients are being billed appropriately. Information about how many man-hours were spent on a project and how much profit was made will determine if clients are charged accordingly.