The Importance Of Tracking Employee Time

Using time tracking software to track your employees’ performance is an option that many companies are considering after the fact that a lot of companies lose $7.4 billion dollars due to productivity issues. Thus, it’s understandable that companies would want to see the details of an employee’s day to see what they’ve done during the working hours in order to intervene and get the help that their employees need to be more productive in the office.

Time tracking software can be very helpful for companies, both big and small, in improving, not just their productivity issues, but it can also help in employee time management issues. Thus, tracking employee’s time is important as it benefits not only the company but everyone in the company as well.

Here are more benefits of using time tracking software.

1. Assessment of Work Distribution In The Company

One of the benefits of using time tracking software is that you’re able to see what tasks occupy most of your employees’ time. From a management point of view, you can assess which projects consume the work time of the employees. If these projects are not really making the money but it is the task or project that gets more time, then it doesn’t make sense, right?

So, in the management area, you can actually use this information to intervene and inform employees not to spend much time on it or simply allow a few people to work on that project. This way, the employees can work on more important projects that actually make money and not waste it on projects that are failing.

2. Better Productivity

Productivity can be defined as the number of high-quality outputs produced in contrast to the time it took to finish the task. With the use of time tracking software, individual employees can assess their productivity by analyzing their work patterns.

The employees themselves will be self-aware of their work and can make changes to improve their work schedules. They may also allow a specific amount of time to finish tasks and lessen their distractions while at work.

3. Clearer Accountability

A lot of projects require a group effort to complete. In these circumstances, project managers need to know who’s responsible for specific tasks and manage deadlines for each task.

With the help of a time tracking software, managers can see the time it takes for each task to finish. Then, they can evaluate whether employees can make the deadline or not. They can also see if an employee takes far too long to finish their task and can extend help if necessary.

Knowing all the members of the team in the project, what they’re responsible for, and whether they’re keeping up with the schedule they’ve agreed upon makes the individual employee more self-aware. They’re aware of their accountability to the project and their members.

For managers, they’re also aware of which members of the team are having difficulty in finishing their tasks.

4. Modern and More Accurate Timesheets

The use of traditional timesheets or using punchout clocks to monitor the work shifts of your workers is outdated. This might also not be the best way for some companies to monitor the productivity of your workers. They take the time and precious working hours of your employees to look through and analyze. Thus, it’s inefficient and would only cost more money and resources.

For companies who work mainly with contractors and freelancers, time tracking software is a better solution to make sure that they’re paid for the number of hours that they’re working. It’s easy to access, it’s updated in real-time, and most of all, it takes fewer resources and working hours to analyze.

5. Helps Save Money

The money wasted often stems from the low productivity of the workers. Add to it the inefficient and wasteful use of manpower and resources due to the inability to assess the source of low productivity, managers and/or owners are unable to provide the correct intervention.

All these can be solved if the management and the company can properly assess their employees and how they’re performing in the office during working hours. The answer to this is the use of time tracking software – a simple solution that solves the root cause of why companies lose money.

So, despite spending money to get time tracking software, you’re actually saving money by providing a solution to the problem.


The common feedback from employees who use time tracking software in their office is the feeling of being snooped on and the stress it causes. They also feel pressured and feared that all their hard work might not be represented in what’s recorded in the time tracking software. They also fear that the management might micromanage them and how they spend their working hours.

These fears are valid, so it’s best for management to clearly state to the employees the reason for installing the time tracking software. It’s also proper to recognize that, indeed, a person’s hard work and productivity cannot all be recorded in the software. Most of all, management should always recognize and applaud their hard-working employees as they see fit, not only based on what’s reflected on the time tracking software.

Bhasker Das
Bhasker Das
Bhasker Das, with a master's in Cybersecurity, is a seasoned editor focusing on online security, privacy, and protection. When not decrypting the complexities of the cyber world, Anu indulges in his passion for chess, seeing parallels in strategy and foresight.


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