One of the most common challenges business owners and managers face is maintaining accurate employee time sheets or records. As of 2015, the U.S. services industry was losing a reported 50 million hours per day in productivity, accounting for a staggering $7 billion in losses a day (or more). However, there is a way to quickly recover a good portion of that – by switching from paper, manual time tracking to an automated time tracking system.
How is an automatic time tracking system able to produce significant savings for you and your business? How does it affect day-to-day operations and your bottom line?
In every aspect of life, it is well proven that people who keep track of their time get more accomplished. The same goes for time tracking in the workplace.
This increased awareness of time helps workers identify and avoid distractions – distractions like multi-tasking. As much as multi-tasking sounds like a positive ability, for most people, studies have shown that multi-tasking can actually lower productivity by up to 40%. Time tracking software helps keep this habit in check.
Tracking time can also help streamline your daily processes. It can identify areas that are taking too much time from your employees. You are then able to analyze and readjust any processes, as needed.
Increased Labor Costing Accuracy
A large portion of service-based industries relies on quotes and estimates for fixed-price jobs. It is vital for those quotes to be as accurate as possible to avoid unnecessary losses. Labor costs are a significant portion of most jobs and are therefore extremely important. Accurate time reporting allows management to correctly quote fixed-price projects and keep profits as high as possible.
Time tracking solutions tend to make workers more accountable for their time and actions. This is extremely valuable to a business, especially when processes include multiple employees and departments that rely on each other. Managers must be able to keep track of which employee is handling which task, when it was or will be completed, and how much time was spent doing it. This is imperative for more complex jobs that rely on multiple workers or departments to remain consistent and productive.
Time tracking solutions provide transparency in two different ways – for the company as well as for the employee. Accurate employee time tracking gives managers and business owners a clearer understanding of how time is being used and how effective their current work processes are. This transparency allows up-to-date information to be available to management to oversee daily operations and make improvements as needed – not long afterward. This avoids a good portion of the disruptions surrounding updating or improving current processes. Time tracking also allows management to notice any trends in work cycles or attendance.
Transparency in time tracking is also a benefit for the employees. Quite often, workers can harbor a distrust or sense of unfairness between departments or teams. This is quite true for remote workers. A survey recently reported that 62% of remote workers worry that management does not view them as competent, productive employees because they are not completing their tasks in front of them physically. Employees can rest assured that the automated time tracking system will relay accurate, objective information regarding their productivity and time habits. This relieves a considerable amount of fear and distrust between employee and employer. As an added benefit, accurate time tracking allows managers to notice employees who are being exceptionally productive – praise and recognition go a long way to improving employee morale and productivity.
Elimination of Time Sheets
Another obvious benefit and money-saving feature of automatic time tracking solutions is the reduction – if not complete elimination – of paper time sheets or time cards as well as the time spent on them by workers and management alike. More time can be spent on billable services. The possibility of human error is not a factor either, which also reduces the costs involved in time tracking.
All of these benefits reduce costs and increase your bottom line. Automatic time tracking has been a proven consistent way to help businesses of all types become more productive and profitable. Now the task of finding a time tracking solution that best suits your business. There are plenty of options out there, so be sure to do your due diligence before selecting the right one for your business.