You’ve probably seen it at some point in your professional life: the classic Excel sheet used for time tracking. It is complicated, error-prone, and not necessarily user-friendly. Modern solutions track time online and offer far more than mere time tracking. Some of these tools are also specifically designed for small business and are relatively inexpensive. And with growing demand, they can often be enhanced.
While a company is being established and just afterwards, its focus is often on things other than tracking working hours. Entrepreneurs often trust employees themselves to be mindful of adhering to the working hours stipulated in their employment contract.
It’s true that trust is good, however, it’s common knowledge that oversight is better for all parties involved. If you track working hours, you learn not only if someone is shirking their work. You also see if your employees are working too much. That can become a problem as well. On the one hand, overtime hours are regulated by law; on the other, excess work can be detrimental to your employee’s work-life balance and even their health.
With this in mind, time tracking has another function in addition to merely displaying the working hours that have been achieved: They can also reveal a company’s time and personnel shortages. If your employees work too much, this might mean that you need additional staff or that processes need to be optimized.
An online time tracker is considerably easier to use and more convenient than an Excel sheet. It has three different models:
Many tools enable all three versions. This has the advantage of enabling the employee to record their working hours completely independently of where they are located at any given time. Mobile apps also often allow you to record hours and synchronize them later on when there is an internet connection again. The data is then stored in a cloud and automatically synchronized across the various devices.
Workings hours can be tracked in two different ways. With work-related tracking, only the arrival and departure times are tracked, as well as break times.
Example of work-related timekeeping
The employee starts working at 9 am. At noon he takes a one-hour break. At 6 pm he calls it a day.
With project-related timekeeping, in contrast, individual activities, projects, or customer service hours are tracked. This is important in many agencies, for example, or specialist departments that do the groundwork for other departments within the company. In doing so, not only is the total working time tracked; how much time the employee takes to complete a specific project is also determined.
With online timekeeping, you can set your budgets or hourly rates for specific activities or projects. These tools display the hours that employees have spent on specific projects using descriptive diagrams. This has the advantage of enabling you to keep an eye on a project’s progress and its cost-efficiency. If only a limited amount of time or budget is available, then you’ll immediately see when this will be reached or even exceeded.
Examples of project-related working hours timekeeping
9:00 am to 9:30 am: Read and respond to e-mails
9:30 am to 10:30 am: Team meeting
10:30 am to 12:30 pm: Work for customer X
12:30 pm to 1:30 pm: Lunch break
1:30 pm to 2:30 pm: Work for customer Y
2:30 pm to 3:00 pm: Project meeting
3:00 pm to 4:00 pm: Work for customer Z
4:00 pm to 6:00 pm: Work for customer X
An online time tracker has numerous advantages in comparison with time tracking with an Excel sheet or stationary terminals, and can be especially practical for new businesses. Below are some examples of how or in which areas the online time tracker demonstrates its strengths.
Online time tracking tools can be quickly and seamlesslyset up. Normally every employee receives their own login details that are only known to them to access the system. Additional hardware – a terminal for tracking time, for example – is not necessary. This helps save money that especially in the early founding phase is often better invested in other areas.
Most time tracker tools are user-friendly and easy to learn how to use. Currently, the selection is so large that you and your employees can try out different tools to find the most appropriate one for you and your company’s needs.
Most tools offer one of the three following options for tracking time. Some tools offer all of them.
The tracked working hours can be evaluated quickly and simply through online timekeeping tools. This ranges from a simple overview of whether an employee has accumulated overtime to a comprehensive report for management. An exact tracking of working hours also makes payroll accounting easier. The times that have been tracked can for the most part be exported as Excel files, CSVs, or PDFs. Often there also interfaces for accounting software that can be used to directly access the hours-worked data.
Many online timekeeping tools offer functions that go far beyond time tracking. Some examples:
And even when they don’t offer these functions themselves, many applications can be connected with other programs via interfaces– for example,with accounting applications or project management apps such as Trello or Asana.
You can vet most online tracking tools before you decide to pay for their use. You could give one a try with a 30-day trial phase, for example, or test a free version where some of the premium features aren’t made available to you. The range of functions for the basic version is relatively limited: it can potentially only be used by a low number of users or only allows fewer projects and customers to be set up.
If you decide on a comprehensive, fee-based rate, you pay for it with either a monthly or annual subscription. The rates are often tiered according to business size, so the more employees you have, the higher the rate. For startups, an inexpensive rate is usually completely adequate. Should the business grow and the demands increase, you can still switch to another rate later on.
As is the case for every timekeeping system, the tool is only as good as the people who operate it. If your employees don’t use it or don’t use it enough, then the online time tracker will not function properly. Yet many applications offer a remedy for this and regularly remind employees to track their working hours.
Resistance to online timekeeping is often the result of employees feeling as though they’re being monitored. To prevent this, it is important that you communicate the reasons for implementing online timekeeping. Create trust and explain to your employees that they themselves will also benefit from their working hours being correctly recorded. It is often wise to include the team in the selection of the online time tracker in order to allay any concerns.
Keep in mind as well that a tracking tool tracks the working hours, but not the quality of the work. If an employee requires more or less time for the same task as a colleague, it doesn’t reveal anything about the result of their efforts. You should keep this in mind especially when evaluating working hours.
The laws governing employee time tracking are not always clearly defined. Things like overtime and meal breaks are managed differently state by state. However, every employer covered by the Fair Labor Standards Act is obliged to keep records for their employees, including the hours worked each day and the total hours worked per week. What kind of data must be collected and what role does data...
Mobile time tracking was and is done with pen and paper in many companies. However, this method is both prone to error and unnecessarily time consuming. Thanks to digitization, we now have better solutions. Mobile time tracking apps enable companies to reduce their error rate and minimize their use of resources. However, implementing these tools leads to new challenges.
Obviously, work hours need to be accurately recorded. The question is how and with what tool? There are a variety of time tracking systems on the market with varying prices and functions. However, the right solution for you is not necessarily the one with the lowest price or the largest range of functions. The system needs to be the right fit for your company for everyone to benefit from it.
The FLSA has come up with some guidelines to make sure that employees are compensated for their extra working hours. As well as federal laws, certain states have their own rules which must be adhered to. Employers who do not follow these rules can be taken to court and may face jail time.
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