Time tracking is a necessary evil in today’s business world for many reasons. Employee time tracking is something that must be done to ensure proper payroll processing, accurate client billing, and compliance with current regulations. While there are many great benefits to proper team time tracking, there are also some drawbacks. Each must be weighed against the other to find a good balance and to make the best decision for your company. In this article, we will examine the good, the bad, and the costly effects of implementing employee time tracking.

The Good

Most of the time, the benefits of online employee time tracking greatly outweigh any negatives associated with the process. One of the major benefits is reduced labour costs. Through proper time tracking, organizations can keep a much closer eye on labour costs and make decisions more quickly that will keep those costs in check.

Appropriate timesheet management also ensures that overtime is minimized when possible. On certain projects, labour costs may be passed on directly to an end client. With accurate time tracking, your organization can be certain that the client is billed for all the time spent on the project.

Time clock solutions also allow for more efficient operations. HR spends less time processing payroll, and in some cases, employees receive their checks even faster. Employees themselves also become more aware of how their time is spent throughout the day. This often leads to them becoming more punctual and taking fewer or shorter breaks. When they have increased accountability through time tracking, they are more likely to spend their time doing their work while on the clock.

The Bad

There are pros and cons to almost every solution, and time tracking software is no exception. One of the largest concerns lies around the area of privacy. Time gathered through online time clock software is sometimes done using biometric options or GPS tracking. This can create some big privacy concerns from employees, and employers must be careful to address these legitimate concerns.

Many employees are not comfortable sharing biometric information such as fingerprints or other items for the purposes of time tracking. In addition, many employees feel that GPS tracking may be taken advantage of and used even when employees are not on the clock. Be sure to address these concerns head-on so that employees can see how you are responding to these issues.

The Costly

While employee time tracking can save you money, there are costly aspects as well. These can take both a monetary form and a non-monetary cost. The most obvious cost is the cost of the software or application that you are using for time tracking.

Most applications such as this come at a base price, plus additional costs for custom features or support. If you opt for a higher level of support or more custom features, the more money it is likely to cost you. This is where cost-benefit analysis is helpful to determine whether the software is worth the expense.

Costs of employee time tracking are not necessarily all related to money. In some cases, certain methods of time tracking can come at the cost of employer-employee relationships. When employees feel like they are being micromanaged or constantly tracked, they feel as though they are not trusted by management. This can lead to resentment and lower employee satisfaction. This is not a good tone to set within your company, and you should try to avoid this situation.

Make sure your employees see the reasons for and benefits of time tracking. This will help them get more comfortable and ease their fear of creating a “big brother” environment.