Employee Time Tracking: How to Track Employee Hours
Employee time tracking is a two-edged sword – on the one hand, it’s needed to improve team performance, but on the other hand, it’s time-consuming and, in many cases, simply intrusive.
This is why I provide you with practical tips for employee time tracking in this article: to make it fast, employee-friendly, and optimal for your business.
I’ll share the best methods for employee time tracking that help you to identify time wasters, reduce overtime, and comply with timekeeping policy. From manual methods to top employee time-tracking apps, I’ve got you covered.
Psst… Wondering if you should track employee time? The answer is yes, you should. Especially if you work with hourly employees or bill clients by the hour. Accurate timesheets are key for proper invoicing and project profitability!
It helps your team track time without effort and saves their privacy. No employee monitoring, full GDPR-compliance.
Why is it so important to accurately track employee time?
Time monkey effect
Why is accurately tracking time so crucial? This is where the concept of the Time Monkey Effect comes into play. It illustrates how our emotions can warp our perception of time, leading to skewed time estimations that can jeopardize project success.
When your team engrossed in enjoyable tasks, time seems to speed up, whereas it slows down during less stimulating activities. This varying perception can result in significant inaccuracies in estimating how long tasks take, affecting project planning, project budgeting, and team productivity.
Accurate time tracking in project management helps correct these distortions, aligning our perceived time with reality and leading to more reliable project outcomes and effective time management.
Smooth payroll processing
First and foremost, without accurate employee timesheets, you won’t be able to process payroll accurately. You simply need to know how many work hours your employees clocked in to pay them fairly. (What additionally streamlines a payroll process is a direct integration of your payroll software with your work time tracking app – more about that in the next chapter.)
Read more:
The perfect way to increase your revenue
Secondly, employee time tracking helps you optimize business operations and increase revenue. Project time tracking provides insights into project and team performance, contributing to increased revenue. What does time tracking have to do with revenue, you’d ask. The keyword here is billable hours. If your team works for several different customers and projects, time tracking is essential for accurate client billing.
Additionally, by tracking the time of all team activities, you are able to identify the tasks and projects that generate the most significant income and substantially contribute to your business revenue.
- Check out the enterprise time tracking by Timeular
Improved employee productivity
Tracking work hours is an excellent way to increase employee productivity. It helps you understand where your time goes and empowers you to make every minute of your employee time count.
- Recommended read: How to deal with lazy coworkers
Overtime and workload in check
Last but not least, tracking how many hours employees spend at work helps keep a healthy work-life balance. Workload management and overtime tracking suddenly become a breeze, aiding you in keeping team motivation and health in good condition.
How to track employee hours
1. Employee time tracking software
An employee time tracker software like Timeular is a time tracking app that automates the process of recording how much time is spent on various tasks, including project time tracking.
Unlike traditional methods like manual time tracking or punch clocks, best employee timesheet software often works in the background, quietly logging hours without requiring constant input from the user.
A time tracking app comes in different names, i.e. employee time tracking software, employee timesheet software, employee time tracker, and more.
How they work:
Best employee time tracking apps provide automated time tracking, offering an almost effort-free approach to tracking time. Your employees don’t need to stop to write down what they’re doing; the automated time tracking software handles it for them.
This leads to more accurate and less biased data on how time is spent, which is invaluable for improving productivity, lower labor costs, managing projects more effectively, and streamlining accurate billing.
- Please note: Time tracking apps provide different methods to track time and not all of them offer automated time tracking. If you want to speed up employee time tracking with automation, try Timeular.
Pros of using an employee time tracking app
- No need to chase manual timesheets ever again: Time is logged in an online platform, accessible around the clock by both employees and employers.
- Automated reporting: Using time tracking apps, you can easily generate detailed reports with just a few clicks. You can report project time, billable hours, and productivity in a fully automated way.
- Streamlined payroll and accurate billing: Time tracking software usually effortlessly integrates with your invoicing and payroll software, simplifying all financial processes.
- Quick and engaging time recording: It’s a breeze to record work hours — creating timesheets is quick, easy, and kinda fun, actually (especially with the personalized physical time tracker).
- Automated billable hour tracking: You can label each task as billable or not billable, add hourly rates, and let the employee time tracking app take care of tracking billable time for you.
- Effective leave and overtime management: Time management apps like Timeular provide leave tracker functionalities that let you track all types of absences and time off.
- Friendly reminders to track time: If the employee time tracking software spots that your employees don’t record their time during the day, it will send them automated reminders to help maintain consistent and precise time tracking.
- Mobile apps for on-the-go tracking: With mobile time tracking, your employees can track time wherever they are, using mobile devices – it’s super handy for those always on the move.
- Great for remote teams: Time tracking apps are ideal for remote work setups, offering flexibility and ease of use regardless of location. A time tracking app like Timeular works both as a Mac time tracker and a Windows time tracker, giving you full flexibility.
- Ease of use and accurate time tracking: An employee time clock app ensures easy adoption for employees and provides accurate time tracking, which helps in making informed decisions about resource allocation and team size.
Cons of using an employee time tracking app
To enjoy all the benefits of an employee time tracking app, you need to choose wisely. As time tracking software is sometimes perceived by employees as a monitoring tool, you need an employee-friendly solution that doesn’t allow micromanagement.
Employees will only track time honestly if they don’t feel monitored in real-time. Therefore, Timeular has a 24-hour delay for time entries to appear on the managers’ side.
2. Pen and paper
Despite the digital age transforming most business practices, the traditional pen-and-paper method for employee time tracking remains in use, particularly among small businesses. This approach involves manually recording work hours, a process that harks back to simpler times.
While it might seem outdated in a world of apps and work automation, for some companies, this method offers a straightforward, no-tech solution that aligns with their operational style. It’s a testament to the enduring value of simplicity in an increasingly complex business landscape.
- Read now: Multiple employee timesheets
How it works
Employees write down their arrival and departure times as well as specific tasks completed throughout the day. These details are captured on paper records, such as logbooks or timesheets, and later manually tallied to compute the total work hours.
As it’s easy to forget about tracking time, employees often send timesheet reminders, i.e. timesheet memes.
Pros of manual employee time tracking:
- Cost-effective: It’s a completely free method for tracking employee time, requiring no investment in technology or software.
- Simplicity: The process is straightforward to understand and implement.
- No technical skills needed: Anyone with basic writing and counting abilities can effectively use this method for tracking employee time.
- Flexibility: Easily adaptable to different formats and layouts based on specific needs. Immediate Implementation: Requires no setup time or learning curve, unlike digital tools.
Cons of manual employee time tracking:
This manual time tracking method for tracking employee hours, while straightforward, has several disadvantages:
- Time-intensive: This manual time tracking method requires significant time for writing, organizing, and calculating hours.
- Error-prone: The risk of human error in recording and calculating hours is higher compared to digital methods.
- Lack of security: Paper records can be easily lost, damaged, or accessed by unauthorized persons.
- No real-time tracking: This method doesn’t offer real-time tracking or instant updates, potentially leading to delays in data availability.
- Limited data analysis: Analyzing trends or generating productivity reports is more challenging and less efficient than with time tracking apps.
Automate time tracking with Timeular and do it under 1 minute per day
3. Online time tracking templates
Microsoft Excel and Google Sheets are popular tools for basic time tracking. They are often used as a free replacement of automated time tracking tool, offering a familiar solution in many business settings.
However, I strongly discourage you from collecting your time tracking data in a manual way. It’s mundane, time-consuming, prone to errors, and nobody likes it.
Even a simple time tracking app is more efficient than using time management templates.
How they work:
Employees track time spent on various tasks within these templates. With appropriate formulas, these sheets automatically calculate total work hours over daily, weekly, monthly, and yearly periods.
Integrating project time tracking into these templates can provide better insights into project and team performance, making project management more efficient.
Pros:
- User-friendly for regular users: Intuitive for those who are familiar with Excel or Google Sheets.
- Highly customizable: Easily adaptable, allowing for specific modifications and additional formulas.
- Versatile data handling: Suitable for various tracking and analytical needs.
Cons:
- Time-intensive management: Requires significant effort in setup, data entry, and review.
- Increased complexity: Adding formulas for leaves, PTO, and other variables can make the system more intricate.
- Dependence on estimates: Often relies on approximations of time spent, which may not be completely accurate.
- Limited security and [rivacy: Data stored in spreadsheets can be less secure and more prone to privacy breaches.
- Difficulty in consolidating data: Aggregating information from multiple sheets for analysis or reporting can be challenging.
I’ve prepared several templates for downloading if you’re looking for a template to track your time:
To calculate total hours worked on a project, use a free Time Card Calculator. To calculate overtime, use the Overtime Calculator.
Read also:
Automate time tracking with Timeular and do it under 1 minute per day
4. Time clocks
Time clocks, which originated in the late 1800s, are a longstanding method for tracking employee hours. Time clock solutions come in various forms, including card swipes and biometric systems like retina or fingerprint scanners.
How they work
Employees clock in by swiping a card or undergo a biometric check upon arriving and leaving the job site. The time clock system then calculates employee work hours based on these check-ins and check-outs.
Pros of time clocks:
- Ease of use: Time clock requires minimal action from employees; just a swipe or scan at arrival and departure.
- Automated data recording: The time clock system automatically logs and calculates total time spent at work.
- Accurate time tracking: Time clock software provides precise records of employee attendance and hours worked.
Cons of time clocks:
- High implementation costs: Time clocks are especially costly if a company operates multiple job sites.
- Potential hygiene issues: Depending on the employee clocks system (card, fingerprint, retina), regular cleaning is necessary to maintain hygiene.
- Impractical for mobile workforces: Not suitable for employees who work at multiple locations or are frequently on the move.
- Not suitable for remote work: Limited tracking hours of employees physically present at the site, making it ineffective for remote work scenarios.
TIP: Did you know that you can use a time-keeping app as a time clock software?
5. GPS tracking
GPS and location tracking tools are widely used by companies with field services to accurately monitor the work hours of employees who are operating in various locations outside the office.
How it works:
Employees carry GPS-enabled devices that automatically record their location at different job sites. This data is then used to accurately calculate their work hours, streamlining timekeeping for field-based tasks.
Pros
- Efficient remote time tracking: These tools make it easy to track the time employees spend outside the office.
- Accurate location data: Provides precise information about where employees are during work hours, ensuring accountability.
Cons
- Necessitates manual time calculation: While GPS tracking provides location data, calculating the actual work hours still requires manual effort.
- Privacy and autonomy issues: The use of GPS tracking can raise concerns among employees about privacy and being monitored too closely.
- Reliance on GPS-enabled devices: This method’s effectiveness depends on employees’ access to and use of GPS-enabled devices.
- Vulnerability to technical errors: GPS tracking is susceptible to inaccuracies due to signal issues or device malfunctions.
Read: The best employee time tracking software
6. Monitoring tools
Employee monitoring tools, which companies use to oversee their employees’ various work activities, can be quite contentious. These tools monitor app and website usage, scrutinize emails and messages, and may even record phone calls or track locations using GPS.
Although intended to boost efficiency and protect company data, they are often discouraged. The downsides, like invading privacy, damaging trust, and creating a stressful atmosphere, usually outweigh the perceived benefits.
Respect for employee privacy and trust and compliance with legal standards must be prioritized, and the use of such monitoring tools is generally not recommended.
Cons of employee monitoring software:
Employee monitoring should be avoided at all costs by companies and, therefore has no pros. Let’s review the cons of employee monitoring:
- Privacy concerns: They can infringe on employee privacy, creating an atmosphere where employees feel their personal space and autonomy are being invaded.
- Trust issues: Excessive monitoring can signal a lack of trust from management, potentially damaging the trust-based relationship between employer and employee.
- Stress and pressure: Being constantly monitored can lead to increased stress and pressure, which can, in turn, affect mental well-being and employee satisfaction.
- Reduced morale and productivity: Instead of improving productivity, such monitoring can have the opposite effect, as employees might feel valued more for their output than their professional skills and contributions.
- Potential for conflict: It can lead to workplace conflicts and a negative work environment, as employees may feel they are being treated unfairly or suspiciously.
- Legal and ethical issues: If not implemented carefully, monitoring tools can lead to legal repercussions and ethical dilemmas, particularly if they are used in ways that violate employee privacy rights or labor laws.
Make sure you use transparent tracking methods to avoid workplace conflicts and respect employee privacy.
Employees will only track time spent honestly if they don’t feel monitored in realtime. Therefore Timeular has a 24h delay for time entries to appear on the manager’s side.
How to choose the best employee time tracking software?
When choosing the best employee time tracking app, it’s essential to focus on top features that enhance usability and accuracy. Here are the top three factors to consider:
- User-friendly interface: The tool should have an intuitive and easy-to-navigate interface. This ensures that employees can use it effortlessly, leading to better compliance and more accurate time tracking.
- Multiple time tracking methods: The app should offer various methods for tracking time, such as manual entry, timer-based tracking, or automated systems. This flexibility allows it to cater to different work styles and preferences.
- Automatic time tracking: Look for features that enable automatic tracking of time spent on tasks. This reduces the burden of manual entries and enhances the accuracy of the time recorded.
- Anti-surveillance policy: Employees will only track time honestly if they don’t feel monitored. For this reason, I advise you to refrain from employee monitoring tools that intrude employee privacy by taking screenshots or video.
What is the best way to track employee hours?
The answer to this simple question is also simple: it depends. Different solutions can work for different companies and businesses. However, in my opinion time tracking apps offer the most value.
When looking for the best time tracker, you should make sure you choose the tool that “steals” little to no time, is automated, easy to use, and, if possible and applicable, remote-friendly, as remote work is becoming increasingly popular worldwide.
Choose what’s best for your company and for employees, and streamline your time tracking processes today!
FAQ about employee time tracking
Is there an automated time tracking app to track employee hours?
Yes, there is! A good example of an automated employee time tracking software is Timeular. You can use it as a desktop app, web app, or mobile app. Additionally, it provides a physical time-tracking device that works as a reminder to track time regularly.
Can I integrate an employee time tracking app with a task management tool?
Yes, you can, and it’s easy! Take a look at the software that the Timeular time tracking app is integrating with Timeular integrations. You will find project time tracking tools that integrate seamlessly with task management software, payroll processing apps, and project management tools for both small businesses and enterprises.
How to track work hours on Google Sheets?
To track working hours in Google Sheets, set up a sheet with columns for dates, hours worked, and other relevant data, then enter this information manually. Utilize Google Sheets formulas to automatically calculate the total hours worked, ensuring efficient and accurate time management.
How to track employee hours in Excel?
To track employee hours in Excel, create a spreadsheet with columns for date, hours worked, and other relevant details, then input the data manually or automatically. Use Excel formulas to calculate total hours worked, ensuring accurate and efficient timekeeping.
How to track time of employees working from home?
One of the best ways to track employee time remotely is to use a time tracking tool. This automated and digital method will easily track working hours, connecting the data in real-time to the person in charge of keeping track of the employees’ working hours.
How to track working hours on an iPhone?
The best way to track working hours on an iPhone is by using a time-keeping app, also known as a time tracking tool or app. Why? Some time tracking apps like Timeular have a mobile app version, which can be used on an iPhone as easily as they are used on a computer.