Benefits of Time Management for Businesses

Timesheet's Time Tracking allows you to know exactly how long it takes to complete a given task and who is most productive on your team, whether they are regular employees or contract workers. Knowing how much time is spent on certain tasks can help businesses select employees effectively and get employees to think about how their time should be used.

Still, some businesses don't track employee hours because they don't want to offend employees. Introducing time tracking can be seen as micromanagement or an invasion of employee privacy, and shows management's lack of confidence in its own employees. In this case, they rely on employees to monitor their time. While showing trust can build employee commitment to the company, it can also open the door to fraud.

Increase productivity

Time tracking can help employees keep a detailed record of their work progress, but ignore external distractions (calling, browsing the internet, overly socializing) that can often get in the way. Multitasking can reduce productivity by as much as 45%, which can be detrimental to a company’s success. Tracking which projects are taking up too much of an employee's time gives managers the leeway to determine the risks and rewards of spending time on each project. Many times, companies start many projects and work on them all at the same time.

However, spending too much time on a project may not be worth the end goal. Tracking tools can help managers identify and eliminate activities that are not critical to progress, thereby increasing revenue.  

Strengthen accountability

A major component of team success is making sure everyone on the team feels that the projects you are undertaking are important. Members (big or small) who are not recognized for their work may not be motivated to put in 100% of their effort. Using time tracking creates accountability among work teams, as it informs employers of important things, such as which employees completed certain tasks, when work was done, and how much time was invested in each.

Time tracking reinforces the employee's own sense of responsibility. When time tracking is enforced, employees are more likely to complete their work more efficiently and more likely to hold themselves accountable for the progress of the entire project. Time tracking is not meant to intimidate employees, but to reaffirm the importance of the job at hand and the need for employee engagement, hard work, and honesty.

Increase transparency

Managers assign work to employees, but employees often know little about workflow. Employee time tracking provides complete transparency about what work is being done, how long it will take to complete it, and highlights which other tasks are neglected. Transparency allows managers to re-examine employee workloads and provide them with the necessary resources so they can perform their duties quickly and efficiently. Tasks that take too much time to perform can be reconsidered and optimized by managers so as not to interfere with the workflow. Tracking time enables managers to understand which parts of the project require more staff and more time. It also allows managers to plan ahead, with more employees on busy days and fewer on days when production is stalled.

Employee time tracking also opens up channels of transparency among colleagues. If employees feel that their department is doing most of the workload while other departments are slacking off and contributing nothing to the project, they can get a better picture of the big picture with employee time tracking as they can see which departments are getting things done in real time. It also makes employees feel that their performance isn't being overlooked when it's clear on the software that they're getting things done.

Increase attractiveness to customers

Leveraging software builds a reputation as a company that places great emphasis on time management and accuracy. This is a major selling proposition as it allows new leaders to timely migrate their way of time tracking and project management should the need arise. The time tracker contains detailed records of each employee and the work they perform, which the new ownership group can use to help measure employee expectations and output.

Prevent scope creep

Human-to-human communication isn't perfect, or ambiguity is in one's favor. Scope creep is something that often occurs after a contract is signed. If not handled properly promptly, it may end up costing you more money and more time. Using employee time tracking tools, you can plan for unanticipated or unforeseen expenses and additional work from executing a project, identify scope creep the first time, and handle it appropriately.

Improve employee morale

The most underappreciated benefit of employee time tracking is that it can increase employee trust and respect, which in turn improves employee performance and overall productivity.

A work environment without time tracking provides greater opportunities for micromanagement. Micromanagement can dampen employee morale, as every aspect of their job is constantly under scrutiny. This can be frustrating because they are afraid of making mistakes and being affected.

The company's employees should see this as an additional communication channel. You must implement time tracking software as a tool to help develop the skills and talents that employees already possess. Every employee has room for improvement, and with this software, you can provide good feedback to help them grow and develop their potential.

Different employees have different strengths and weaknesses that can help you determine which employees should be assigned specific projects to ensure maximum productivity.