How Time Tracking Can Drive Business Growth

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How Time Tracking Can Drive Business Growth

For some organizations, time tracking is seen as a redundant part of operations, but it can provide a substantial amount of value for the company and its employees (check out our previous blog, “How Time Tracking is Beneficial for Employees”). Time tracking can help companies in various ways, such as improving management of resources, provide detailed job costing, and more. In this blog, let’s take a look at the benefits that time tracking can provide, as well as key features that you should prioritize when choosing a time tracking solution.

Why Time Tracking?

Manage Your Resource Capacity Better

Time tracking gives you clear visibility into your resource workload. You can easily see what each team member is working on and how much time they’re putting into each task or project. By analyzing this information, you can identify and correct any areas where employees are spending a lot more time and effort than they need to be. The data you get from time tracking allows you to see how efficient your workflows and processes are, or if any of your team members need extra coaching and support.

You can determine if an employee has the capacity to take on more tasks. You can also see if you need to reassign or prioritize certain duties, or if you need your team to focus on more profitable projects. Having these insights will enable you to better manage your resources and ensure employees are continuously performing at a high level of productivity.

Determine How Much Your Projects Cost Your Organization

You may have a large number of expenses, such as office rent, office furnishings, taxes, and your greatest expense of all: your labor. Knowing exactly how much your projects are costing you is significant. Time tracking will clearly indicate how much effort is being put into each task by showing you what your team is working on and how many hours they are allocating to each task. Determine if you can afford to increase your workload or if you need to scale down on projects that add little value for your business before it’s too late.

Make Accurate Projections

Quoting new projects or services can be difficult, especially if you don’t have previous data to refer to. Through your time tracking data, determine the exact duration and cost of your past projects or services. It will be easier for you to make future projections based on how long similar projects have taken and cost in the past.

Generate Accurate Invoices

If you bill by the hour, tracking your time with software will automatically calculate what your client owes you instantly, so you can provide a clear and precise invoice to your client. Manually generating invoices are not only tedious, but also prone to human errors which can result in inaccurate invoices. In this day and age, you should be able to rely on technology and software to do your work for you.

Key Features That You Should Prioritize

If you’re using pen and paper or manually creating spreadsheets to track your employees’ hours, you’re probably spending hours to input data. You shouldn’t have to do that when your time can be focused on more important things. Digitizing or automating your data will help you obtain key information at any time you need, with less of the hassle. Payroll providers often offer or include time tracking solutions as a bundle to help you and your team easily track their time and analyze data before sending it off to payroll. Let’s take a look at some of the key features you should consider in a time tracking solution.

Effortlessly Log and Track Hours

Your employees should be able to enter the time they spent working on tasks and projects with ease. Employees can rest easy knowing their work hours are being tracked, while employers will have visibility into their team’s capacity. From knowing where hours are being put into, progress of current projects, to any potential bottlenecks – you can take action immediately. It will be ideal to choose a solution that provides you these capabilities in one place.

Track Time Against Clients and Projects

Reconcile time tracking with your projects. You don’t want to invest in a solution to track time, only for you to manually match up hours worked on certain tasks. Some solutions, like Harmony Time & Attendance, offer the functionality of creating projects and tasks for employees to clock into, so that they can work more efficiently.

Conveniently Analyze Past Information

What’s the point of automatically tracking time when you can’t easily analyze it or quickly identify key information? With a time tracking solution, you have the ability to look into and analyze data from the past in one central location. Manually tracking time can be extremely tedious when locating the information you need and difficult to determine how much time was spent on certain tasks and projects. Even with some solutions, it can be difficult or take a long time to view the data you want. Harmony’s Time & Attendance module features dynamic reporting, allowing you to customize and view data the way you want.

Clear Summary Overviews

You may not always have time to look at everything in detail, which makes it important that your solution provides clear and easily accessible summary overviews. Look for a comprehensive dashboard that displays important information, without compromising on the ability to view each specific aspect in detail. This ensures that you will be able to do what you need to do, quickly and efficiently.

User-Friendly and Intuitive

Lastly, don’t forget to make sure your tool is easy to use. Learning a new software shouldn’t discourage you or your employees. A cumbersome and difficult-to-use solution will disengage employees and generate a negative mindset. A simple time tracking tool will make it easier for employees to log their hours consistently. For administrator users, they will be able to manage the system better, as well as be able to pull the data they need anytime, anywhere.

Closing Thoughts

Having your workforce track their time can be very valuable for your organization. By choosing the right time tracking solution, you can better manage your resources, have more detailed job costing, make accurate projections easier, and generate clear and precise invoicing. However, if you do not have the right tool in place, it can be counterproductive. Having a software solution that has the key features we highlighted will help set your employees and business up for success.

Paymate offers Payroll and Time & Attendance solutions, in which your employees can track time and identify any discrepancies easily before it’s sent off to payroll. With flexible ways to enter time, and integrations with hardware time clocks, empower your business and your employees with technology to your advantage.

Clarity is Paymate’s on-premise payroll solution for medium- to large-sized businesses in North America. With robust reporting tools and modules for Human Resources and Time & Attendance, you can do more than just payroll.

Harmony is Paymate’s hosted solution for businesses of all sizes in North America that is fully modular in nature. Time & Attendance is the newest module added to Harmony, with extensive features and robust reporting.