Running Your Business

The Benefits of Time Tracking Software for Businesses

  • Time tracking and productivity go hand in hand, especially in terms of organizational profitability

  • The majority of the day's tasks are typically completed by employees before noon

  • In an increasingly remote workforce, the need for time tracking and monitoring productivity levels jumps exponentially

Posted by March 18, 2019

Not sure if time tracking software is right for your organization? Consider this: The benefits of time tracking go far beyond the function of simply keeping tabs on employees. It’s a critical tool used by many businesses looking to monitor the resources spent on projects in hopes of remaining competitive and profitable in the long run.

Of course, some tasks take longer to complete than others, depending on how complex the work is and whether or not the right person was assigned to the job. This creates the need to monitor (and make adjustments to) tasks and workflows on a frequent basis. In an agile work environment—which is where more and more businesses are heading—how resources are managed can be the difference between success and failure.

That’s where the benefits of time tracking software come in! Here’s what you need to know.

Employee Productivity Trends

Time tracking and employee productivity management have become synonymous with each other. There are only so many hours in a workday, and they all need to count. Research by Redbooth and Priceonomics indicates that employees have peak hours when they are most productive. These findings were gathered from interviewing thousands of workers across multiple industries, and they may look familiar to you:

  • The majority of the day’s tasks (9.7 percent) are completed around 11 a.m.

  • Most tasks are completed on Monday (20.4 percent) and productivity slowly wanes until Friday (16.7 percent).

  • After lunch, productivity falls dramatically. After 4 p.m., it often dwindles to a full stop.

  • Nothing really gets done on the weekend (Saturday and Sunday each show 4.7 percent productivity).

  • In terms of the entire year, the most work is produced in October, and the least is accomplished in January.

Eliminating Micromanaging

According to Robby Slaughter, owner of Indianapolis-based consulting firm Accelawork, the most effective way to increase employee productivity is to stop micromanaging. “The best way to encourage productivity is to encourage individuals to take ownership over how they manage their own time and resources,” Slaughter notes in an article for Hubstaff.

It’s well known that, in general, people don’t like feeling controlled. When it comes to the workplace, extreme micromanaging can potentially trigger emotional distress in employees—which can potentially lead to legal action and affect an organization’s reputation. This is why time tracking is such a great asset; it lets employees who respond well to operating independently the freedom to do so, and it can encourage others to be self-starters, too.

By the year 2027, half of the U.S. workforce is projected to be freelancers, contractors and remote workers. Time tracking software may be the only way to understand the productivity levels of these workers who cannot be physically monitored.

Better Productivity Management

Employees understand the need to be productive, but they can occasionally get into bad habits or experience periods where work slows down. With time tracking, you can pinpoint these problem areas.

For instance, as part of every performance review, employees can be given a report that shows when they have (and haven’t) been the most productive. This discussion can help determine if they are able to take on new projects. This report could also be helpful in identifying what times work best for your colleagues to schedule time off.

Seasonal downtimes and busy periods—whether industry- or holiday-related—both pose a challenge for productivity levels. Time tracking can help you monitor these trends and plan ahead, from keeping a steady supply of projects in the pipeline to hiring temporary staffers when work tends to fluctuate.

With time tracking software, your company can better manage team members from a higher level, making for a more engaged and productive workforce—and a more profitable organization, too.

Does your organization suffer from productivity issues? Take some time to explore Benefits Bridge for helpful insights, advice and tips.

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