Economy is everything in the business world - numerous successful entrepreneurs and corporate executives will agree and adhere to the premise. Without economical resource spending, there is no successful management of a business in the modern world.
Time IS money - many will say.
The two are closely related. The ability to economically allocate and spend time on working assignments directly translates into favorable financial results.
But how to do that?
Time tracking is the key!
How to Track Employee Working Time
It’s been over a century since the great international demonstration when the working-class demands for an eight-hour day had been adopted. And while ever since then it’s been illegal to work for more than eight hours a day without proper compensation, a large part of the workforce works far less than that.
According to research - and Insightful’s passive time tracking software - people are on average spending only five hours a day on productive tasks and their core responsibilities. The other three hours are wasted on menial tasks like checking email and calendar appointments, or completely forgoing professional duties for long coffee breaks or browsing social media.
While it is unreasonable to expect even from the highest performing employees to work productively for eight hours straight - every day - and maintain the quality of work, it gets business owners thinking: Am I paying my employees to sit around? Why don’t I start with time tracking and see if they really finish their tasks in only five hours instead of eight?
And you’d be surprised at how much money you will be able to save this way. But bear in mind that it doesn’t necessarily mean cutting working hours.
Tools like Insightful don’t just record when employees are checking in and out. Through various monitoring mechanisms, it allows managers to keep a close eye on the activities undertaken during working hours, aside from being employee time reporting software:
- Productivity measuring (keystroke and mouse movement and click intensity)
- Website and app usage productivity labeling (productive, unproductive, neutral)
- Screen capturing (manual, behavior-triggered)
- Undesired behavior and idle time alerts
- Advanced reporting (in-app and via email)
- Timekeeping (data available for two years), etc.
The most obvious benefit of tracking employee working time is the fact that the staff tends to be more productive by simply being aware of the monitoring practice in the company.
Our own experience has shown that clients’ employees raise their productivity levels by 20-30% in the first month alone after the company implements time tracking. Furthermore, those levels stay up if working routine improvements are introduced in the collective.
How to Save Money by Tracking Time
The purpose of tracking time in the workplace is to manage it effectively. By getting in-depth insights into what activities take up the staff’s time and in what way, it allows for a reduction or removal of redundant activities.
Better time management can be directly linked to better project handling and, consequently, more favorable financial results.
That’s why, with Insightful’s web time tracking software, both employees and managers have access to the gathered data which benefits both sides greatly.
It allows employees to self-examine their working habits and improve professional performance without direct pressure from superiors. Take into consideration that people are sometimes unaware of how much time they waste on unproductive activities in the workplace, or how much interruptions can derail their working progress.
By having a direct insight into the numbers and graphical representation of their working output, they can easily answer the age-old question: How can my work time app help me increase my performance?
The answer - eliminate procrastination, time waste, and unproductive activities in the office.
On the other hand, it provides the managers with insights into the efficacy of each team member, time and task handling skills, as well as a way to establish better communication and a culture of accountability in the workplace.
Moreover, team leaders have a unique way of recognizing parts of the process that may block or slow down projects. In this sense, they are more than just employee tracking - it’s the basis of successful project management.
Raw data from Insightful permits workforce efficacy analysis and reorganization of assignments between team members in such a way that gives optimal project results within the deadline. That way both assignments and collaborators can allocate their time to achieve the best process flow.
Moreover, it also provides insights for planning future projects, not only in terms of allocating human resources and complying with time requirements, but ultimately for getting the best financial results.
In this sense, having access to accurate and reliable information gathered by billable time tracking software can have a significant and direct impact on company revenue.
Utilizing precise insights into the number of productive hours invested in a project, especially one with crude financial limitations, can determine the amount of success with which you arrive at the finish line.
If you’re hiring freelancers or have other staff members that you are paying by the hour, it’s very important to have a clear image of where you stand with the budget and at what pace it is being spent. Therefore, time tracking and billing software should be the most used tool in your arsenal.
However, while it’s in your best interest to maintain a good ration between billable and non-billable hours, have in mind that it depends on the industry and innovative optimization methods you are willing to implement.
To ensure optimal company spending a lot depends on the ability to be economical with time as well.
While time tracking is primarily associated with increasing productivity, the impact it has on the company bottom line is direct and unquestionable, so it would be foolish of any business owner or corporate executive to neglect equating saving time with saving money.
This article was originally written on August 27th, 2019 by Aleksa Misic. It was updated on July 30th, 2020 by Aleksandra Djordjevic.