6 Good Reasons to Use Employee Timesheet
Are you struggling to manage your employees’ time effectively? Do you find it challenging to track their start and end times accurately? Are you tired of the inefficiencies and errors associated with paper timesheets and time cards? If you answered yes to any of these questions, it’s time to consider implementing employee timesheets. Despite their reputation as a dull and boring tool, timesheets can be a game-changer for your business, helping you get the most out of your workforce while improving productivity. In this article, we’ll give you six good reasons why you should implement timesheets for your employees sooner rather than later. So, let’s dive in!
1. Billing your clients
One of the main reasons why organisations track the work hours of their employees is to facilitate the billing of their clients. Any consulting or service-based firm will charge their clients on a time-basis. It then becomes necessary to know the exact amount of time your employees have spent on client-related activities which will need to be charged.
2. Tracking Project Costs
The time entries your employees spend working on a project is billable time. This cost is simply equivalent to your employees’ hourly pay rate, plus any other employer contribution usually associated. Materials, external suppliers and internal labour generally make up the project cost. It is this last category, internal labour cost, that is the hardest to keep track of since employees accomplish a variety of tasks during their day; ranging from completing a training course to working on administrative tasks.
Whether your projects have an internal or external purpose, it is important to measure its related labour cost. If you are working for clients, you will want to know when your projects stop being profitable. If they are internal projects, you will certainly be as much curious to find out the actual cost of your activities. Without a time tracking solution, It can be difficult to know the cost of a project, and therefore know exactly where your money is going.
3. Planning Your HR
By keeping track of the actual amount of time spent on different activities, you will be able to compare your planned resources with the actual resource utilisation. You will then be able to analyse the causes behind that delta and draw lessons for more efficient resource planning in the future.
4. Estimating Future Costs
On the long run, your estimations will become more reliable and accurate. In fact, by comparing the actual time required to complete similar tasks or projects, you will be able to easily figure out how much time you will need for future project management.
Of course, you will have to account for other factors such as the level of experience of your employees, as well as the level of technology they have access to. Using time tracking will provide the information you need, automatically calculate employee timesheet and will serve as a reliable reference to estimate future costs.
5. Measuring Unproductive Time
Unproductive time management represents the time that is not focused on creating value – for example: annual leave, personal leave, training, administrative tasks, etc. Obviously aiming a 0% rate of unproductive time would not be realistic.
However, the objective here is to be equipped with the information so that you can be ready to take action if necessary. For example, an organisation for which that ratio is close to 50% will want to understand the reasons behind this number; so that it can increase work time focused on high value activities instead. Excessive and lengthy procedures can have a heavy impact on productivity and process improvement can allow your organisation to improve this aspect.
6. Understanding Your Employees Workload
This is not about implementing a surveillance program, but about better comprehending how much work your employees have to accomplish. Do you have people working over 80 hours per week? If so, you might want to consider ways to alleviate their workload, for example by transferring tasks to more available employees who are ready to give a hand, or by recruiting additional staff.
Systematic overtime, repeated week on week, might mean that the workload is too important or poorly allocated, and highlights that certain resources are key. Hence why the importance of using timesheet software for employee to ensure that your human resources do not get run down and exhausted.
Using Timesheet Management the Wrong Way: Watching & Controlling
Many companies still rely on paper timesheets for tracking their employees’ start and end times, but this method can be prone to errors and inaccuracies. The use of time cards or excel timesheet can be a time-consuming and inefficient process, often resulting in discrepancies between actual hours worked and reported hours.
With the rise of employee time tracking software, businesses can now streamline their timekeeping process and ensure more accurate tracking of hours worked and hourly rates.
On the other hand, implementing employee time sheet management systems to watch your employees and ensure that they are actually working will not deliver a positive outcome, simplify the payroll processing and reduce errors that can occur during pay periods. Employees who feel like they are under constant surveillance will not produce more effort to achieve the objectives of the organisation. The truth is that they will only try to look like they are working harder.
In addition, a scientific study has shown that people’s intrinsic motivation to work (i.e. the pleasure they take in accomplishing a task) will diminish if they perceive their work environment as controlling. By using an employee time tracking software, businesses can easily monitor their employees’ start and end times, as well as their hours worked, without the need for manual data entry. On the other hand, providing more freedom and autonomy has been linked many times to an increase in performance and satisfaction, while lowering felt work pressure.
Fortunately, watching and controlling is not what encourages human resources managers to keep track of their employees work time. In today’s fast-paced business world, the use of employee time sheet management softwares can help companies stay on top of their employees’ hours worked and ensure compliance with labor laws and regulations. A time tracking software will certainly help increase visibility over your cost, activities and profitability. Employee time tracking software allows for more precise tracking of hourly rates, ensuring that employees are paid accurately for their work.
Tracking real time on mobile app, one of our most precious resource, has become crucial since it is non-renewable. Nevertheless, this should not be a reason to use online timesheet to pressurise your staff. Creating a positive work environment in which your people will actually want to be in is much more effective.
Investing in a quality employee time tracking software like EmployeeConnect can save your business time and money while ensuring accuracy and compliance with labor laws and regulations. With EmployeeConnect’s user-friendly interface and powerful features, you can easily track your employees’ time, generate reports, and streamline your payroll processing. Don’t wait any longer to upgrade your time tracking system. Try EmployeeConnect today and see the difference for yourself!