The benefits of using time tracking software begin with the accumulation of needed information about how your business runs on an average day. Below are six ways that tracking software will help you manage labor costs in the most efficient ways.
1. Client Billing Awareness
Clients need to be handled fairly when it comes to billing and invoicing. Guessing at the amount of time taken to complete a project can result in being underpaid or overpaid for the work done. Underpayment for work performed hurts your business. Overcharging will cost you clients that feel they did not get a great deal for the services rendered. You can account for each project with the assistance of tracking software. You can feel confident that your company is getting fairly compensated and the clients remain happy.
2. Eliminate Pay Discrepancies
Manually writing up a timesheet can lead to payment discrepancies that are hard to prove or disprove in many cases. It can lead to overpaying or underpaying an employee. It creates the same type of problem as noted above regarding clients. Overpaying an employee is harmful to your bottom line, and underpayment can lead to legal disputes or loss of valuable employees. Tracking software will keep every job accounted for to the minute.
3. Employee Time Cognizance
With the accounting of every minute of the job, most employees will be far more cognizant of staying on track to get done. It can virtually eliminate procrastination and slow performance. The simple reminder that tracking software provides will increase overall productivity. Break times can be tracked to make sure employees are taking a moment away from duties to rest periodically.
4. Budget Analysis
Employee tracking software will paint an accurate portrait of how long it takes to complete particular tasks. An average scale of time will emerge that is fair and sensible. It makes it easier for management to create budgets for labor expenses.
5. Employee Audits
Employee performance can be judged fairly with the use of tracking software. You can reward employees that show performance improvement and consistency. You can see at a glance when some employees are struggling. Performance audits using real information makes it easier to determine promotions, pay raises, and other benefits.
6. Accurate Management Oversight
Effective management oversight is complete when there is total access to critical information at all times. It can assist in making decisions about budgets, personnel needs, workload changes, growth and expansion planning, and resource needs. Being able to run a company as lean as possible will maximize profits.
Tracking the minutes or hours it takes for employees to complete given tasks is one of the smartest management tools you can incorporate into the daily routine. The proper documentation gives you the information you need to make sound decisions.