Published on January 9th, 2020 | by Sunit Nandi0
How Time Tracking Can Help Save Money For Your Business
The ultimate goal of having a business is to keep it solvent enough that you earn a profit. This includes saving money through the processes and policies that you implement to lessen the amount that you have to shell out per month.
One way to save on company expenses is by investing in employee time tracking software. While you still have to purchase the tool, you also have to think about the long-term benefits that you’ll gain after paying the capital.
Here are the ways on how time tracking can help save money for your business:
1. Accurate Billing
Traditional timesheets rely too much on human memory, which can often be faulty regardless of whether its intentional or not. With a time tracking tool, you can eliminate the risk of inaccuracies on your billing.
This way, your business saves money on paying for hours that weren’t worked for by your employees. You also save time on settling discrepancies, which could’ve been used for other more productive tasks.
2. Fair Employee Compensation
Similarly, you also get to save money when you compensate your employees fairly. If you take care of them and pay them according to the amount you both agreed on in their contract, you’ll gain their trust as an employer.
As a result, you’ll increase employee morale. They’ll be more satisfied with their jobs and provide excellent output. Fair employee compensation allows you to recruit and retain the best talents, which can help you achieve your business goals in no time.
These are the factors that you have to consider implementing for fair employee compensation:
- Job Description – You need to write down the tasks that each role is responsible for as a parameter for the employees’ obligation to the company. A job description serves as your reference to create fair pay structures.
- Job Analysis – Evaluate the responsibilities of your employee along with other factors, such as safety risks, stress, schedule, and level of supervision. This allows you to provide salary offers that are fair and competitive to your industry.
- Pay Structure – Determine the pricing and salary structures for every position in your organization. Set a minimum and maximum percent spread for the various pay grades.
- Salary Offer – Remember that money isn’t the only reward that you should highlight when presenting the offer to new hires. Consider other perks, such as paid time off, company culture, and other non-monetary benefits.
- Merit Increases – Bonuses are another way to boost employee morale. Make sure that you set specific guidelines on what behaviors or accomplishments warrant monetary rewards.
- Compensation Change – When creating your pay structure, you have to account for possible changes in payment for the future. This includes calculating for inflation and other economic factors to stay competitive in your industry.
3. Improved Productivity
Time tracking software allows you to measure the amount of time that your employees spend on each task. With this data, you can get an accurate idea of the resources that are being invested in these projects.
You can make the necessary improvements to ensure that your business maximizes each transaction. This tool is particularly valuable for contractors who bill their clients per hour or for every completed project because the software provides accurate details.
Some tips to boost productivity for your business:
- Audit Your Processes – Before you can make changes to your processes and policies to improve efficiency, you have to audit the ones you have in place. Check if there’s a way to produce the same output at a shorter time and by using up fewer resources without sacrificing quality.
- Invest in Appropriate Tools – Think about the benefits of digital and other technological tools for your business. While you may be required to shell out a considerable sum upfront, you can save more money in the long-run with the right gadgets and equipment.
- Set Practical Goals – Aiming big is fine, but make sure that you set your expectations according to the capabilities of your workforce.
- Give Positive Reinforcement – Positive reinforcement can come in the form of cash bonuses, extra leave credits, or even free food. Something a simple as validating their efforts personally and sharing their success with the team can significantly boost employee morale.
- Lessen the Noise – Encourage your staff to avoid distractions by limiting the amount of time they spend checking their phones. With this, they can be more productive and focused on their tasks during work hours.
4. Automated Data Collection
Aside from tracking the clock-ins of your employees, a time tracker also has additional reporting features that allow you to pull up data automatically. For instance, the information provided by this tool enables you to check the progress of a project and evaluate whether you’re allocating extra resources for it or not.
The insights given by time tracking software can also help you spot vulnerabilities or weaknesses. For example, you may see a trend of inefficiency during the initial stages of a project.
With this tool, you can investigate the roadblock and work on developing solutions to the problem so that the cycle ends. Consequently, you can boost productivity and save money.
5. HR Efficiency
Calculating payroll for an entire company is a daunting task. Time tracking software automates some processes, which spares your Human Resources department extra minutes or hours to spend on other tasks that require a higher level of thinking.
Invest in technology that can automate the busy work of the HR department. You can glean information on which employees are adding to your company expenses through poor performance and have a guide when it comes to recruiting the right talent for your organization.
6. Less Wasted Resources
The traditional method of tracking employee work hours entails paper timesheets and ink to print the time of their clock-in. Investing in digital time tracking software can help your business save money through digitalization.
You won’t need to order paper and ink specifically for timesheets each month. Everything can now be recorded digitally.
Aside from saving money, another crucial resource that you conserve is time. Your team no longer has to pour over every employee’s timesheet for a particular pay period and encode them on the computer as well as calculate for the pay manually. The software does all of that for them.
One primary advantage of investing in time tracking software is that you ensure accuracy in your billing. This, then, translates into compensating your employees fairly for the time they rendered on your company’s projects.
The tool also collects data automatically, which allows you to see how much time each employee spends on a particular task at a glance. This data enables business owners to measure productivity and assess the weak points of their workforce.
A time tracker can also boost the efficiency of your Human Resources team and automate a few processes to give them time to focus on other more crucial aspects of payroll. Lastly, you have less wasted resources because everything is saved and done digitally.