What is time tracking software?
Time tracking software records the working hours of employees and contractors for billing or payroll purposes. It enables companies to measure time spent on tasks and projects to ensure that employees are compensated correctly. Aside from merely tracking hours, time tracking software also gives insights into business processes, highlighting steps that are particularly time-consuming. By determining which tasks waste time, companies can make adjustments to optimize workflow, maximizing working hours and ultimately increasing productivity. Time tracking tools also boost employee productivity by promoting accountability for hours worked and keeping time data in a central location. In addition, the software allows businesses to gauge individual and team performance by monitoring how much time they spend working on various tasks. Time tracking software computes the total hours worked within a given period; managers typically review timesheets sent by employees to verify accuracy before forwarding them to payroll. Time-tracking solutions are often a part of more comprehensive platforms for payroll, project management, employee monitoring, or professional services automation software. These software vendors generally offer additional features, such as logging lunch breaks or hourly wages, and support robust integration with third-party applications for client invoicing or accounting. There are also standalone time-tracking tools ideal for smaller businesses and contractors.Find your new time tracking software
What are the benefits of time tracking software?
Increases efficiency
Manual time-tracking methods, like paper time cards and spreadsheets, are time consuming for HR staff and managers alike. It takes a lot of time to collect, organize, verify, and document physical timesheets accurately. The process of manually inputting time is cumbersome for employees as well. Time tracking software automates all these activities, enhancing efficiency. It eliminates the need for manual work by running in the background and automatically recording the employee’s work activity. Moreover, the software organizes time data for HR departments to review. Advanced solutions can also have timesheet calculators, time reports, and geofencing for better monitoring.Boosts employee productivity
Time tracking software generates reports that reveal employee productivity, pinpointing tasks that consume a lot of time. Leaders can use these reports to spot time mismanagement that’s impacting the workflow. This granular data can help businesses optimize processes and improve staff performance.Streamlines payroll processes
One of the best benefits any organization can gain from using time tracking software is streamlined payroll. Many time tracking tools also integrate with payroll systems, resulting in smoother business operations. Accurate time tracking is critical to error-free employee compensation. Time tracking tools automatically calculate earnings based on the employee’s pay rate, minimizing the human errors that come with manual time tracking.Delivers reliable insights
Time tracking tools let managers keep an eye on the exact hours an employee spends working. Managers can view important details, such as when or where employees clock in and out, when they take lunch breaks, and the specific tasks they work on. This encourages employees to hold themselves accountable and drives them to focus on productive work. Good time tracking software also provides employers with valuable insights into staff work performance. As a result, managers can take steps to develop poor performers and recognize hard-working employees. These insights also help employers identify over-leveraged workers so they can make workload adjustments and avoid burnout.What are the types of time tracking software?
Automatic time recording software
Automatic time tracking software records hours worked on various activities with a timer. Users need only start the timer or open the software when they begin working and stop or close it at the end of working hours. Timers usually run in the background to avoid any distractions. Fully automated time recording software utilizes AI to recognize specific tasks and turn them into reliable time entries. Automatic time tracking software eliminates the need for employees to manually enter their time spent on tasks.Timesheet software
Timesheet software lets users document hours worked by filling out time entries. It enables employees to input the start and end date of each accomplished task throughout a project. Timesheets are then reviewed by managers for approval.Time clock software
Time clock software allows employees to punch in and out of work electronically. The software can run on dedicated local hardware, or installed on a computer. Advanced time clock solutions also offer biometric support. This feature typically includes a fingerprint reader on office laptops or tablets, so employees can punch in and out using their fingerprints. Some vendors also deliver geofencing time clock apps that let employees clock in and out within a virtual boundary using their mobile phones. These boundaries are set by the company around a particular location on a map. Geofencing time clocks are best suited to businesses with field-based staff or multiple work sites.What’s the business impact of time tracking software?
Time is money for any organization, and time tracking software can ensure that employees spend their work time appropriately. By knowing that their working hours are being monitored, employees are extrinsically motivated to be more productive. Time tracking software enhances time management for the entire company and helps prevent project delays due to mismanaged time. Further, time tracking solutions can be an invaluable asset to the business as they increase efficiency and decrease human error. Time tracking software automatically keeps track of employees’ working hours so teams can focus on other tasks. Companies can trust that the system has reliable data for billing clients, or that payroll will be error-free. Additionally, the software offers fact-based analytics, so leaders can make informed, data-driven decisions about the workforce.