How employee time tracking can help your business save money
Employee time tracking is a surprisingly simple concept that has the potential to save your business thousands of dollars per year. Rather than requiring a manual entry of information, employee tracking software automatically calculates total day and week clock-in and clock-out times, total breaks taken, and even the amount of time spent on specific tasks.
Later, you can use the data to generate client invoices, calculate employee wages, and bill clients for overtime worked. With so many benefits, it’s easy to see why 98% of companies who track their employees’ time feel it is an effective business practice.
The following are ways employee time tracking can help you save money:
Reduce vacation and sick day over-usage
Many employees use paid time off in excess by claiming sick days when they’re not ill or taking an extra vacation to compensate for a hectic period. By monitoring the number of time workers spend away from their desks, you can reduce these instances and save valuable payroll cash.
Employee time tracking can be tricky if you are a sole proprietor. However, there are easily accessible and affordable software and applications that even the smallest of businesses can use to track employee time.
Spot time theft
Employee time theft is surprisingly common, with workers spending time on non-work-related websites or even running personal errands during company hours. These instances are more easily spotted when you keep track of employee time, resulting in disciplinary action against the guilty.
Using the best app to track employee hours gives you the best chance of spotting time theft by employees. You can then reduce the amount of theft and ensure that employees are working the right amount of hours.
The employees will spend their working hours accomplishing company objectives instead of personal activities or slacking off, which costs your business money.
When you track employees’ time, it’s easier to make sure they don’t work an excess of overtime. With a quick glimpse at the screen, managers can see exactly when their workers clocked in and out and whether or not they’re taking breaks that might zap productivity.
Keeping your workforce from working long hours with no extra compensation can save thousands in labor costs per year.
By reviewing the information generated by your employee time tracking software, you can quickly see if certain employees are more productive than others. Employee productivity data is beneficial for performance reviews and helps managers determine where to allocate resources for maximum effectiveness.
It is the easiest way to save money on payroll and not spend a fortune on expensive time-tracking software for your employees.
When you monitor specific tasks, it’s easier to tailor employee training to what will have the most significant impact on overall efficiency.
Task monitoring allows less experienced staff members to quickly learn which work habits are most effective and increase their productivity within a relatively short time frame. By training the workforce where it is needed most, you can save time and money for hiring new employees.
When you track your employees’ time, it’s possible to see precisely how much time they spend on each task. By simply looking at the screen, managers can quickly determine whether or not their workers are meeting benchmarks for productivity and cut ties with those who aren’t pulling their weight.
Since most employers cover payroll costs within 30 days, this practice helps reduce the amount of money wasted on unproductive workers and ensures that your best employees remain with your business.
As you can see, there are numerous reasons to start tracking employee time, and using an automated solution is a great way to accomplish all your goals.
Using time tracking apps to track employee hours and provide easy-to-understand reports that can help improve workflows throughout your business. By staying on top of the collective time on all your projects, you can quickly see where time is being wasted and increase overall productivity.