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July 04 2022
 min read

Benefits of Time Tracking

Anushka Das

Time Tracking seeks to improve productivity and transparency in an organisation.

Benefits of Time Tracking

What is Time Tracking?

In recent times with increasing work hours and the flexibility of these work hours, there is a need for a proper system to account for the number of work hours spent by each employee at work. It allows for efficient documentation of the employees' working hours and allows proper compensation accordingly. It can include other categories such as attendance, total time et cetera. It can include scheduling, time clocked in, and other elements. There are three basic elements to time tracking, these are:

1. Time Entry- this refers to when the employees clock in at work that is when they begin a work day. It can broadly also involve finishing times and any breaks which may have been taken.

2. Approval- these are important for proper and accurate compensation. Timestamps and timesheets are used to very accurately calculate the number of work hours and overtime hours if any to calculate the compensation amount.

3. Reporting- this involves submitting the approved and verified hours to payroll for processing. Most software uses this to even identify strategic benefits in the system.

Documentations of these elements have been usually done by hand. This is a cumbersome process and can lead to human mistakes naturally. To hasten the process and make it smoother and more efficient, a number of time tracking software have been developed. Some organizations prefer to still manually track time but there has been a shift in the trend. 

Usually, there is a concept of time stamps used, which can be used on manual paper or now, can be used in an electronic format as well. Modern time-tracking software uses unique identifiers to identify employees. It can automatically track an employee who has clocked in and the need for manually tracking each employee during each workday is eliminated. These timestamps for each work day are collected and stored in a timesheet which is used later. 

The need for time-tracking has risen in recent times with organizations realizing the amount of time that is lost without efficient tracking. The time lost in inefficient meetings and spent in overtime work hours are not accounted for. Time tracking dramatically increases employee productivity as it allows an insight into how they spend their work hours. And since remote working has taken over in several cases, time tracking has become more important than ever. Offline working hours are easier to track as you can physically check on an employee, but with the online mode of work, it isn't so easy. The end of the day can refer to different timings. 

It may come across as micromanaging your team but it helps in not disrupting progress. It is more self-reflective than anything as it allows employees to see where they are spending more time and whether it is reaping the subsequent rewards.

It promotes transparency between employees and employees. Instead of constant check-ins which can disrupt progress, the concept of a timesheet just makes things easier for both parties.

For organizations, it is important to track where the employees are spending the most time. This helps in eliminating activities that are proving to be wasting time and resources. It helps to counter inefficient workflow and overstaffing as well. 

The increase in productivity is an obvious factor. Time tracking gives you an approximate measure of your productivity concerning the time you spend on projects and the results which are received. Once you measure your progress, you can improve yourself.