Employee time tracking is an often overlooked part of happy, successful, and compliant teams. Here, we\u2019ve compiled some practical solutions to streamline your time-tracking processes and start reaping the benefits in your business.<\/p>\n\n\n\n
TL;DR \u2014 Key Takeaways<\/h2>\n\n\n\n\n- Tracking time is crucial for accurate payroll, labor law compliance, effective project management, revenue growth, and preventing employee burnout.<\/li>\n\n\n\n
- You can track employee time<\/a> in many different ways\u2014manual or digital timesheets, time tracking apps, geofencing, or biometric clock-ins.<\/li>\n\n\n\n
- Some might advise URL tracking tools, but these can trigger unhelpful behaviors in your team. We believe in trust over surveillance, and chances are your employees do too.<\/li>\n\n\n\n
- If you’re looking for time tracking software, some options include Toggl Track, QuickBooks, and Clockify. You might even use software like Google Sheets or Excel. The best fit will depend on your business needs.<\/li>\n\n\n\n
- Any way you slice it, implementing a time tracking solution makes productivity management a piece of cake. This simple implementation boosts revenue, efficiency, and employee well-being.<\/li>\n<\/ul>\n\n\n\n
Why it\u2019s so important to track employee time<\/h2>\n\n\n\n
Before you go there\u2014nope, we’re not talking about bosses spying on their employees. We’re really against all that Big Brother stuff (we\u2019ve made a statement<\/a> about it and everything.)<\/p>\n\n\n\nThere are so many other <\/em>benefits to employee timekeeping<\/a> that have nothing to do with surveillance. We’ve outlined some below.<\/p>\n\n\n\n![\"Why](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2022\/10\/Why-its-important-to-track-employee-time-1024x593.png\")
<\/figure>\n\n\n\nCalculating payroll accurately<\/h3>\n\n\n\n
Put simply, accurate time tracking allows for accurate payments<\/strong>.<\/p>\n\n\n\nWe know the last thing you want to deal with is the headache of payroll discrepancies. Mistakes in payroll calculations can be messy and uncomfortable to deal with at the best of times and land you in hot water at the worst of times (poor Jane).<\/p>\n\n\n\n
By accurately tracking time, you can avoid time theft and ensure every minute is accounted for and compensated. Now, that’s <\/em>how you build trust and efficiency in your workforce!<\/p>\n\n\n\nCompliance with labor laws<\/h3>\n\n\n\n
In the US, businesses are legally required to track time for all <\/strong>hourly employees<\/strong><\/a>. They must have a record of billable hours, wages, and overtime to comply with the Fair Labor Standards Act<\/a> (FLSA).<\/p>\n\n\n\nThe FLSA protects the right of workers to overtime pay for hours worked over 40 per workweek. Willful non-compliance can land you a criminal prosecution and up to $10,000 in fines<\/a>.<\/p>\n\n\n\nDetailed time entries also help business owners avoid legal issues by providing a record of paid time off, breaks for meals, and more.<\/p>\n\n\n\n
Better project management<\/h3>\n\n\n\n
Tracking employees’ time can help small businesses better understand where the bottlenecks in processes are<\/strong>, how resource-intensive different projects are, and optimize overall productivity. In short\u2014tracking employee hours leads to better project management.<\/p>\n\n\n\nLet’s consider a branding strategist who’s just landed a new client who needs a rebrand done in a week. Eager for the deal, they agree. Two days before the deadline, they’re still scrambling on artistic direction. In the end, they pull it off\u2014but at the cost of immense stress and a sub-par result.<\/p>\n\n\n\n
If they\u2019d used a time tracker, they would\u2019ve had better estimates of the project:<\/p>\n\n\n\n
\n- Client meetings & correspondence = 5 hours<\/li>\n\n\n\n
- Initial research = 16 hours<\/li>\n\n\n\n
- Art direction = 8 hours<\/li>\n\n\n\n
- Building strategy = 8 hours<\/li>\n\n\n\n
- Executing deliverables = 20 hours<\/li>\n<\/ul>\n\n\n\n
That\u2019s 57 hours of flat-out work\u2014not accounting for coffees, lunches, bathroom visits, or the breathing room needed to let creative ideas rest. The total hours calculation<\/a> would have been much higher, making a one-week lead time totally unrealistic.<\/p>\n\n\n\nIncreased revenue<\/h3>\n\n\n\n
Similar to improving resource allocation and deadline management, tracking work time also optimizes productivity and boosts a company’s bottom line.<\/p>\n\n\n\n
Managers can help workers find more effective time management solutions by identifying time sinks<\/strong>. Minimizing bottlenecks and wasted hours directly impacts overall profitability\u2014leading to increases in revenue, client satisfaction, and scalability.<\/p>\n\n\n\nTake Candybox Marketing<\/a> as an example of a marketing agency spending too much time on unprofitable projects. By implementing time tracking, they identified any project priced under $20,000 would lead to a loss. Once they started pricing more aggressively, they turned down smaller projects and ultimately achieved 40% year-on-year growth!<\/p>\n\n\n\nReduced burnout<\/h3>\n\n\n\n
53% of workers<\/a> feel overworked, according to Censuswide, so monitoring working hours ensures employees can enjoy a healthy work-life balance.<\/strong><\/p>\n\n\n\nEvery team has a workhorse, but it’s not always obvious who it is. Tracking time can solve this mystery and ensure that the workhorse is compensated, supported, happy, and healthy.<\/p>\n\n\n\n
5 easy ways to track employee hours<\/h2>\n\n\n\n
There are many different ways to track employee hours<\/a>. Some are better suited to certain companies than others. For example, a food truck owner might consider a time tracking app overkill, while a design agency might swear by it. <\/p>\n\n\n\nWhatever kind of business you have, one of the following methods below could be a good solution.<\/p>\n\n\n\n![\"Easy](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2022\/10\/Easy-ways-to-track-employee-hours-1024x971.png\")
<\/figure>\n\n\n\nManual employee time tracking<\/h3>\n\n\n\n
Our first port of call\u2014good old pen and paper. This can be a blank page, a table, or via punch cards. Either way, these methods have stood the test of time for a reason.<\/p>\n\n\n\n
Why it\u2019s so important to track employee time<\/h2>\n\n\n\n
Before you go there\u2014nope, we’re not talking about bosses spying on their employees. We’re really against all that Big Brother stuff (we\u2019ve made a statement<\/a> about it and everything.)<\/p>\n\n\n\n There are so many other <\/em>benefits to employee timekeeping<\/a> that have nothing to do with surveillance. We’ve outlined some below.<\/p>\n\n\n\n Put simply, accurate time tracking allows for accurate payments<\/strong>.<\/p>\n\n\n\n We know the last thing you want to deal with is the headache of payroll discrepancies. Mistakes in payroll calculations can be messy and uncomfortable to deal with at the best of times and land you in hot water at the worst of times (poor Jane).<\/p>\n\n\n\n By accurately tracking time, you can avoid time theft and ensure every minute is accounted for and compensated. Now, that’s <\/em>how you build trust and efficiency in your workforce!<\/p>\n\n\n\n In the US, businesses are legally required to track time for all <\/strong>hourly employees<\/strong><\/a>. They must have a record of billable hours, wages, and overtime to comply with the Fair Labor Standards Act<\/a> (FLSA).<\/p>\n\n\n\n The FLSA protects the right of workers to overtime pay for hours worked over 40 per workweek. Willful non-compliance can land you a criminal prosecution and up to $10,000 in fines<\/a>.<\/p>\n\n\n\n Detailed time entries also help business owners avoid legal issues by providing a record of paid time off, breaks for meals, and more.<\/p>\n\n\n\n Tracking employees’ time can help small businesses better understand where the bottlenecks in processes are<\/strong>, how resource-intensive different projects are, and optimize overall productivity. In short\u2014tracking employee hours leads to better project management.<\/p>\n\n\n\n Let’s consider a branding strategist who’s just landed a new client who needs a rebrand done in a week. Eager for the deal, they agree. Two days before the deadline, they’re still scrambling on artistic direction. In the end, they pull it off\u2014but at the cost of immense stress and a sub-par result.<\/p>\n\n\n\n If they\u2019d used a time tracker, they would\u2019ve had better estimates of the project:<\/p>\n\n\n\n That\u2019s 57 hours of flat-out work\u2014not accounting for coffees, lunches, bathroom visits, or the breathing room needed to let creative ideas rest. The total hours calculation<\/a> would have been much higher, making a one-week lead time totally unrealistic.<\/p>\n\n\n\n Similar to improving resource allocation and deadline management, tracking work time also optimizes productivity and boosts a company’s bottom line.<\/p>\n\n\n\n Managers can help workers find more effective time management solutions by identifying time sinks<\/strong>. Minimizing bottlenecks and wasted hours directly impacts overall profitability\u2014leading to increases in revenue, client satisfaction, and scalability.<\/p>\n\n\n\n Take Candybox Marketing<\/a> as an example of a marketing agency spending too much time on unprofitable projects. By implementing time tracking, they identified any project priced under $20,000 would lead to a loss. Once they started pricing more aggressively, they turned down smaller projects and ultimately achieved 40% year-on-year growth!<\/p>\n\n\n\n 53% of workers<\/a> feel overworked, according to Censuswide, so monitoring working hours ensures employees can enjoy a healthy work-life balance.<\/strong><\/p>\n\n\n\n Every team has a workhorse, but it’s not always obvious who it is. Tracking time can solve this mystery and ensure that the workhorse is compensated, supported, happy, and healthy.<\/p>\n\n\n\n There are many different ways to track employee hours<\/a>. Some are better suited to certain companies than others. For example, a food truck owner might consider a time tracking app overkill, while a design agency might swear by it. <\/p>\n\n\n\n Whatever kind of business you have, one of the following methods below could be a good solution.<\/p>\n\n\n\n Our first port of call\u2014good old pen and paper. This can be a blank page, a table, or via punch cards. Either way, these methods have stood the test of time for a reason.<\/p>\n\n\n\n<\/figure>\n\n\n\nCalculating payroll accurately<\/h3>\n\n\n\n
Compliance with labor laws<\/h3>\n\n\n\n
Better project management<\/h3>\n\n\n\n
\n
Increased revenue<\/h3>\n\n\n\n
Reduced burnout<\/h3>\n\n\n\n
5 easy ways to track employee hours<\/h2>\n\n\n\n
<\/figure>\n\n\n\nManual employee time tracking<\/h3>\n\n\n\n
![\"Top](\"https:\/\/toggl.com\/blog\/wp-content\/themes\/toggl-mjtweaver\/img\/brain.png\")
\n ![\"Toggl](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2022\/10\/Toggl-Track-1024x457.png\")
<\/figure>\n\n\n\n![\"Quickbooks](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/01\/Quickbooks-time-tracking-homepage-1024x548.png\"){kind=tracking}
<\/figure>\n\n\n\n![\"Clockify\"](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2024\/09\/Clockify-1024x495.png\")
<\/figure>\n\n\n\n