Time tracking

Time tracking in a business is just as important as accounting, payroll, inventory and anything else. Yet it’s not always done as well as it could be.

We’re here to get to the bottom of time tracking and give you everything you need to know about this unsung component of any business. After all, time is money my friend.

What is time tracking?

Time tracking is simply the process of recording how long is spent on specific tasks or projects, or how long someone has been working. It can be done manually or automatically, and is used for things like payroll, billing, employee productivity and lots more.

In shift-based business, time tracking is particularly crucial - it makes sure that employees are paid fairly, that rosters are kept to, and that productivity is as high as it can be.

Why is time tracking important?

For businesses that use shift scheduling for their employees, such as healthcare, hospitality and security businesses, time tracking is vital.

Accurate payroll

In shift work, pay often varies based on a worker’s shifts that week or month, any overtime they had and things like holiday and sick leave. Time tracking provides the precise data needed for accurate payroll calculations, so everyone is paid fairly and there are minimal disputes.

Complying with the law

Lots of industries that use shift work, like healthcare or manufacturing, can have strict regulations around working hours and breaks. Time tracking makes sure businesses and organisations comply with these laws, avoiding potential penalties.

Improved scheduling

By analysing time tracking data, managers can identify patterns, predict staffing needs, and create more efficient schedules. This can help prevent understaffing or overstaffing, ensuring smooth operations.

Employee wellbeing

Tracking hours can help monitor employee fatigue and prevent burnout. By identifying anyone who’s regularly working overtime or taking on long shifts, managers can take steps to address this and make sure employees are looked after.

Methods of time tracking

There are lots of different ways to track employee time, each its own advantages and drawbacks - not to mention different costs.

One traditional method that is still seen today is the time clock, or punch clock. This is a system where employees ‘punch in’ when they get to work and ‘punch out’ when they leave. This used to be a physical card that would have a hole punched into it, although these days biometric data or swipe cards are far more common.

The humble spreadsheet is another way to track time, although even with all the clever formulas in the world, this is still a very manual process that can lead to errors. A far more popular choice is scheduling software like Planday, which allows employees to clock in virtually on an app, and can integrate with payroll and other systems for a smooth, simplified process.

Tips for effective time tracking

Whatever system you choose, there are lots of steps you can take to make sure it’s as effective as possible:

• Establish clear policies regarding time tracking procedures, breaks, and overtime And make sure everyone understands them.
• Where possible, use real-time time tracking systems that allow managers to see who is currently on shift and if there are any changes from the schedule.
• Think about using software that can automate complex calculations around pay, saving time and reducing the risk of errors.
• Make sure that breaks and overtime are accurately tracked and recorded, so that employees get the right amount of downtime.

Track time with Planday

With Planday’s Punch Clock feature, employees can clock in and out easily using their phone, taking the hassle out of time tracking. Give it a try for free for 30 days.