If you are running a small business, you may be wondering whether time tracking for your employees is the next best step. Many business owners feel that time tracking is not only hard to implement but can cause problems with employees. In this article we are going to tackle three main questions:
- How does time tracking work?
- Is it hard to implement time tracking for businesses?
- How much does time tracking really cost?
Why track employee time? Because your business will be stronger, your employees happier, and you’ll provide transparency throughout your business.
- Time tracking is useful to save administrative time and collect hours worked by employees
- Time tracking software can integrate 3rd-party options so you can sync data across the software.
- Employees want you to track time for accurate pay and accurate hours worked.
What is Time Tracking?
Time tracking employees is the process of recording the number of hours an employee works. While this process used to be completed manually with a time card and pencil, it is now since been automated with the invention of software and technology. With a swipe of a card, the software will record the “clock-in” time and record when an employee “clocks out.” It may look something like this:
Nowadays, most companies use time tracking software that can record an individual clocking in much faster and you don’t have to keep up with hundreds of employee time sheets. Most companies can get time tracking up and running within a day, especially for small businesses. Medium-sized businesses can take a couple of days to implement if you need to print ID cards.
How Useful is Tracking Employee Time?
It is extremely useful Time tracking software makes it easy to record when your employees are working. From there, you can automate the recording and processing of things like:
- Hours worked
- Pay for the week
- Paid Time Off
For small businesses, this can simplify your administrative duties and keep you focused on your business. Software options for time tracking range wildly in terms of features in function. For high-security businesses, you can incorporate biometrics. Other software can help you record time by having employees text you when starting a shift. Simply put, you can find time tracking software at many different price points with many unique features.
Benefits of Employee Time Tracking
While there are many different types of time tracking software, there are some clear benefits to be gained by using time tracking software. Here are some of the most common benefits employers see when they use time-tracking software.
Time tracking software makes it much easier to run payroll and provide accurate pay. No more guessing or rounding upon hours. Furthermore, employees can feel secure even when working overtime because they know their hours are being automatically tracked.
One of the consistent pain points for small businesses is handling HR duties such as time tracking and payroll. Time tracking software can eliminate most of that work by automatically recording hours of work and implementing payroll software as well. Software providers like Gusto, report that most businesses that use their services can run payroll in under 15 minutes!
Having dedicated time tracking software makes it easy to set up clear guidelines with staff. You can let staff know when to:
- Clock-in (remote or in-person)
- When to clock out (lunch break/end of the day)
- When to count overtime
- How to input PTO
- And more!
Unfortunately, not every employee is going to want to play by the rules. Some may try to get paid for hours not worked. Fortunately, time tracking software can help implement policies to stop that. With some services, you’ll also be able to track how long it takes employees to complete certain tasks. This can help you spot bottlenecks as well as employee time theft.
Employee time tracking software makes it easy to monitor who is on your premises, for how long, and what task they were doing. For beefed-up security, you can institute biometrics and access control features to better protect company secrets.
Instead of having each employee interact with you about a PTO request, they can submit the claim in the software. You can then approve within seconds or follow up for further clarification.
As mentioned already, some software will allow you to track how quickly employees complete certain tasks. This can allow you to track how productive your workers are and highlight stellar employees. You can also examine why some employees are so successful and hopefully replicate that process in your organization.
How Much Does Time Tracking Software Cost?
For basic time tracking software, you can expect to pay around $250-$700 dollars per year or starting around $20 a month. There are some free options for time tracking, however, you’ll be limited on features and integration. If you want to learn more about the cost of time tracking software and the best options (including free and paid versions) check out our article here:
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