Time is one of the most valuable resources for any business, but this is especially true for small businesses, where every minute can impact the bottom line. Time tracking helps companies maximize productivity and minimize waste by providing insight into how time is spent.
For small businesses, keeping an eye on where time goes can mean the difference between profitability and struggling to make ends meet. Effective time-tracking solutions offer a detailed picture of how time is allocated across tasks and projects. This insight enables better decision-making, improved project planning, and increased accountability among team members.
But how do you choose the best employee time-tracking software for your business? Let’s explore time-tracking challenges, the tools available, and how they can help you manage time efficiently.
Key Benefits of Time Tracking
- Increased Productivity: Only by tracking how time is spent can businesses identify where time can be better spent.
- Better Project Management: Project and task time tracking ensures that projects stay on schedule and within budget, leading to satisfied clients and successful project outcomes.
- Enhanced Accountability: Employees become more aware of how they spend their time, leading to increased accountability and self-management.
Challenges of Time Tracking
Like everything else, time tracking has its challenges too. Let’s see that one by one:
Manual Time Tracking
Relying completely on manual time-tracking methods like punch cards or spreadsheets is prone to errors and may take significant time. Another important issue with this method is time theft, since intentionally or unintentionally, employees can more easily create incorrect data or forget accurate figures.
Tracking Hours Across Multiple Jobs and Tasks
When employees juggle between many roles, tracking their hours can be complicated. Each job might have its own pay rate and policy, making accurate time tracking vital. In addition to this, tasks may have varying billable rates or even need separate tracking for project management. Employees need to log their working hours and time spent on each task to maintain a detailed record. The whole process can be exhausting and time-consuming.
Keeping Track of Breaks and Overtime
While monitoring employee hours is crucial, tracking breaks and overtime can add an extra layer of complexity. Different jurisdictions have their own regulations regarding break times, overtime laws, and maximum working hours. Ensuring compliance with these laws can be particularly challenging for businesses operating across multiple locations or managing field workers.
For instance, employees in California need to take a 30-minute break after working 5 hours, on the other hand in Alabama, employees under 16 are allowed to do so.
Introducing a new time-tracking system can be challenging, Because employees may resist using that for different reasons, For instance, privacy issues. employees may think the system is aware of their routine and can be used to monitor their activities, Fear of change also arises because employees may think the new technology system might affect their daily tasks.
Additionally, some may perceive time tracking as a form of micromanagement, suggesting a lack of trust in their ability to manage their own time.
To overcome these challenges, it’s essential to communicate the benefits of the new system, address privacy concerns transparently, and emphasize that the goal is to enhance productivity, not control it. Providing adequate training and support can also help ease the transition.
Gaps in Time Tracking
Another time tracking challenge is that there can be gaps in manual time tracking due to several reasons.
- Employees may simply forget to log their attendance, breaks, meetings etc.
- Manual tracking is prone to errors. To err is human and employees can make mistakes when it comes to manually punching their attendance on paper or spreadsheets.
- Multitasking can further complicate time tracking. When employees handle multiple tasks or projects simultaneously, they might neglect to switch time-tracking entries for each activity, leading to incomplete records.
Employees in Different Locations
One of the biggest time tracking challenges is logging attendance for employees who are working in different locations and time zones. Not only is this frustrating but also complicated especially if you’re using simple tools like pencil and paper to log attendance. Additionally, diverse work setups often necessitate adjustments to scheduling policies and processes to remain compliant with labor laws.
Implementing a unified time tracking system can help streamline tracking and ensure accurate records, regardless of work arrangements. This can simplify compliance and enhance overall efficiency.
Compliance to Laws
You’re probably aware as an HR how complicated it can be to adhere to laws if your employees are operating from different cities or states. Different jurisdictions often have unique regulations regarding overtime pay, break times, and record-keeping, and failing to comply can lead to substantial fines.
Certain industries, like healthcare and transportation, face additional regulations. Traditional timekeeping methods often fall short of addressing these specific needs.
Exploring Time Tracking Tools
The market offers a wide range of time-tracking software options tailored to meet the needs of small businesses. Let’s take a look at some of the best tools available:
Clockify
Clockify is a time tracker and timesheet app designed to help businesses track work hours across various projects. With Clockify, companies can monitor employee productivity and manage project timelines.
QuickBooks
QuickBooks Time offers time-tracking software tailored for businesses of all sizes. With QuickBooks Time, companies can benefit from on-the-go time tracking and tools designed to assist in managing projects efficiently. By using QuickBooks Time, businesses can streamline their operations and potentially save up to 4% on payroll costs
Hubstaff
Hubstaff offers employee time-tracking software for remote, hybrid, and in-office employees
Hubstaff’s time-tracking app is built to solve the challenges of tracking work hours. Save hours each week using their user-friendly time tracking, automated payroll, and invoicing solution.
Harvest Time Tracking
Harvest provides both desktop and mobile apps, allowing team members to easily log their time from any device. This flexibility ensures that time tracking is seamless, whether employees are in the office or on the go. Additionally, Harvest integrates with over 50 popular tools, facilitating smooth connections with the applications your team already uses and loves.
Asana
For a time-tracking software that can drive every decision, consider integrating Asana into your workflow. Asana’s time-tracking features allow teams to log their hours efficiently, providing reliable data for confident, data-backed decision-making. By using Asana, businesses can ensure that time is accurately tracked, enabling them to focus on the work and drive their projects forward with greater precision.
AttendanceBot
AttendanceBot solves most time-tracking issues discussed above by integrating within Slack and Microsoft environments.
- Time is tracked in real-time rather than manually by attestation
- Time can be tagged to projects, tasks, or clients, employees can quickly toggle what they’re working on, and admins can keep track of project expenses and progress
- Overtime and break compliance is handled by setting rules across locations, regions, or international offices
- Lack of invasive tracking means low employee resistance, and the embed in Slack and Microsoft makes for high adoption
- Forgetfulness is typically not an issue given the number of reminder and alert options available
AttendanceBot covers time-tracking needs more widely and cost-effectively than most other options.
For a more detailed comparison of different time-tracking tools available, see this blog.
Case Study: Time Tracking with AttendanceBot
Palace Games is an award-winning escape room company based out of San Francisco. With a mission to astonish and delight every customer, they bring joy and play to customers every day.
They needed a better way to track time across onsite employees’ schedules and especially needed a way to track, manage, and control break times. Since employees were often busy and engaged with customers, they needed the fastest, simplest, and lowest effort tool possible that would avoid interrupting important work or customer interactions.
Rising to the top of search results, Palace Games found a Slack app called AttendanceBot which offered a mobile-enable for tracking every piece of data they needed. With everything from automated reminders and alerts for breaks or overtime to instant reporting and full integration with Gusto for seamless payroll management.
With Attendancebot’s help, Palace Games was able to time track seamlessly and more:
Track time and breaks on the go
With so little to learn or train, employees were able to start using AttendanceBot on their phones from day 1, with reminders to help them build habits into their busy days
Automate payroll in Gusto
Everyone’s hours, breaks, and overtime flowed seamlessly into Gusto, automating payroll for everyone on the team
Keep admins and managers in-the-know
By routing alerts and reminders through Slack, the whole team gained visibility to each other’s availability and schedule, and the admin gained a closer understanding of employee flow
Choosing the Best Employee Time Clock App
When selecting the best employee time clock app, consider your business’s specific needs. Here are a few factors to keep in mind:
Ease of Use: The app should be intuitive and easy for employees to use, minimizing the learning curve.
Features: Look for features like GPS tracking, scheduling, and integrations with other business tools.
Scalability: Ensure the app can grow with your business, accommodating more users and additional features as needed.
Cost: Evaluate pricing plans to find an app that fits your budget without sacrificing essential features.
Implementing Time Tracking Solutions in Your Business
Once you’ve selected the right time-tracking solutions for your business, the next crucial step is to implement them effectively. Here are some expanded tips to ensure a smooth transition:
Communicate with Your Team:
Begin by clearly explaining the benefits of the time tracking system. Emphasize how it can enhance business operations and streamline processes. Moreover, how it can help with project management. Effective communication helps in addressing employees’ concerns and also to build buy-in from your team which is important for a successful rollout.
Provide Training:
Organize comprehensive training sessions to help employees become familiar with the new time-tracking app. Ensure that all team members understand how to use the system efficiently, including how to log hours, track projects, and manage any additional features. Training sessions should also cover troubleshooting tips and provide resources for ongoing support.
Set Clear Expectations:
Establish and communicate clear guidelines on how the time-tracking system will be used. Outline the expectations for employees regarding accurate timekeeping, including how to log time, handle breaks, and track different projects or tasks. Clear expectations help in maintaining consistency and ensuring that the system is used correctly.
Monitor and Adjust:
After implementation, continuously monitor the effectiveness of the time tracking system. Gather feedback from employees to identify any issues or areas for improvement. Use this feedback to make necessary adjustments, optimize the system’s features, and address any challenges. Regular monitoring and adjustments help in maintaining the system’s effectiveness and ensuring it meets the needs of your business.
By following these steps, you can facilitate a smooth transition to your new time tracking solution and leverage its full potential to enhance efficiency and productivity in your business.
Conclusion
Effective time tracking is essential for small businesses looking to stay competitive in today’s fast-paced business world. By choosing the right time-tracking software and implementing it thoughtfully, businesses can enhance productivity, improve project management, and ensure accurate billing and payroll. Whether you’re using Clockify, QuickBooks Time, AttendanceBot, or another solution, investing in the right tools can make all the difference in your business’s success.
Employee time tracking not only provides valuable insights into how time is spent but also empowers teams to work more efficiently. By leveraging the power of technology, small businesses can turn time into their greatest asset.
