Top 5 Benefits of Employee Time-Tracking Software

Over the years, businesses have been tracking their employees’ time so that they can pay their wages at the end of the payment cycle. Although this is a necessary process that ensures everyone gets their salary on time and accurately, some employees must be pushed to log their hours.

Further, businesses want to track their workers to eliminate time theft, excessive overtime, and issues of dishonesty. Time tracking generates valuable employee performance data, making organizations more efficient. Therefore organizations and employees can benefit from time-tracking software.

This article will highlight 5 incredible benefits of tracking your employees’ time.

Downsides of Tracking Employees’ Time Manually

Time Theft

Over the years, businesses have suffered from time theft. Companies lose huge amounts of money when they pay employees more for working fewer hours. Part of the reason for time theft is inaccurate records which exaggerate the hours your employees have worked.

Remote workers might unintentionally log in with the wrong amount of hours. For instance, they might get distracted when working at home and start doing household chores. Logging time manually and engaging in personal activities is part of time theft.

Payroll Errors

Tracking employees manually can cause payroll errors. Manual data entry, whether for small or established businesses, can add up to a substantial financial loss at the end of the year.

Buddy Punching

Employees can cover for their colleagues or buddy punching when you track time manually. One person can clock in for others because they will arrive 30 minutes or one hour late. This practice is illegal and unethical and can result in a considerable loss of revenue.

Labor Intensive

Tracking employees’ time with manual time-tracking systems such as spreadsheets is time-consuming and labor-intensive. Inefficient payroll can cause direct and indirect payroll costs, which include work enjoyment, opportunity, and more.

5 Benefits of Automating Time Tracking

Companies benefit when they automate their key business functions. Employee and project time tracking is one of these functions. Generating real-time data can help your business make critical strategic decisions. While there are many tools, employee time tracking with Shiftbase is easy, accurate, and cost-effective. The time-tracking software eliminates spreadsheets, which are time-consuming and error-prone.

Here are additional benefits of using time-tracking software.

  • Identify Areas of Improvement

Time tracking of full-time, hybrid, and remote workers generates data that organizations can use to allocate more resources and make improvements. The information can help you hire the top talent, assign tasks to the right people and minimize wastage.

  • Eliminate Errors

Time-tracking software eliminates manual errors. They allow employees to set up notifications or reminders to pop up at the right time. Automating time tracking provide time spent on different activities. It allows workers to log in with a suitable device such as a smartphone, tablet, laptop, or desktop. The systems enable employees to work offline and still track their time uninterrupted.

  • Better Allocation of Resources

Without tracking your employees’ time, getting the correct estimate of the resources and time each project needs can be challenging. Time tracking software gives you the actual time your employees take on each task. The software provides data on the time your employees spend on productive and unproductive tasks. This helps you to eliminate activities that don’t add value to your company.

  • Improve Employee Productivity and Motivation

Employee time tracking software informs management about employees’ time limits and sets alerts to avoid extra work hours. It details employees who should be rewarded and those who need coaching based on their performance. For instance, the system tracks the number of hours one employee takes to complete a task compared to the other. Doing that helps the management identify workers who might be facing some challenges.

  • Boost Communication

Effective communication is the foundation of a successful business. Tracking workers’ time helps employers monitor the amount of time they spend on their work and identify any inefficiencies as early as possible. It also gives teams a real-time view of what every member is working on and their time on each task. With such information, those facing challenges can get additional support and training.

Final Thoughts

Employee time-tracking software support businesses in various ways. Part of them is that they help your business save money on payroll by minimizing errors, ensuring proper communication, improving staff productivity and morale as well as allocating resources to more productive tasks.

Indeed effective time-tracking apps provide in-depth information that managers and business owners can use to identify areas of improvement. It helps them identify employees that require support, training, and coaching.


SND Team

We are a team of writers passionate about entrepreneurship and innovation. We cover anything else that our readers may find interesting. This includes trending news, lifestyle and finance topics, consumer guides, and much more.


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