The importance of employee time tracking for companies, as well as time and project management in general, can not be understated, especially when talking about remote work environments. Some of the things that employee time tracking allows employers to do are:
Accurately Measure Productivity
Implementing a time-tracking solution into their business allows employers to accurately measure the performance and productivity levels of each one of their remote employees. It provides employers, team leads, or managers with valuable information about how much time each individual employee spends on various tasks and other work-related obligations.
This data allows decision-makers to identify job areas that need improvement and potential bottlenecks and to improve the overall workflow of their remote teams.
Prioritize Tasks and Meet Deadlines
Time tracking tools can help employees better prioritize their tasks on their own or with assistance from their manager, team lead, or employer. Employers use the time-tracking data to identify which tasks or parts of projects need more attention (i.e., more work hours put into them). This allows companies to prioritize work duties more efficiently, improve workflows, and have more effective project management.
Manage Workloads and Allocate Resources
Time-tracking tools and the data collected through their effective implementation give employers a full overview of how and where their available resources and manpower are allocated. With that overview, team leads can more easily identify overworked employees and employees whose work obligations allow for additional tasks or duties (i.e., underutilized employees). This way, employers or managers can distribute the tasks and workload and allocate resources evenly among remote team members.
Additionally, remote employee time tracking can be a useful resource for creating time estimates, project budget and cost estimates, and more.
Have More Accurate Billing and Invoicing Processes
A lot of remote employees perform their work in the capacity of freelancers or contractors. This makes time tracking an important aspect of remote work, closely connected to billing clients and invoicing employers. The only way to ensure both are accurate is to track the time spent on different projects or tasks.
Tracking time allows employees to create accurate invoices and employers to bill their clients correctly. This not only promotes good relationships with a particular client but can also positively affect how a company is viewed by other prospective clients (i.e., it improves the company's brand and establishes it as a client-friendly business).
Stay Compliant With Labor Laws
Time tracking and keeping clear and accurate records of all employee work hours is mandatory in order to comply with many labor laws (especially in the United States).
By having accurate documentation and records, companies throughout the United States can ensure they are fully compliant with regulations and laws imposed by various state or federal legislatures for the purposes of governing labor. These types of employee records need to include everything from work hours, breaks, and overtime.
Additionally, there are some US laws, namely FLSA, that impose legal requirements as to how exactly tracking of employee work hours should be implemented and performed.
Improves Remote Team Collaboration
Time tracking can foster better collaboration within remote teams. By knowing exactly how specific employees operate and their workloads, efficacy, and availability, managers of remote teams can facilitate greater levels of collaboration and team coordination, preventing overlapping efforts and improving the overall efficacy of the entire team.
Time tracking in a remote work environment can help increase transparency and prevent time theft. When remote employee time tracking is implemented into a business, it will provide employers with a greater degree of visibility and information as to how exactly remote employees are using their work hours, ultimately leading to increased transparency.
Remote Employee Time Tracking Benefits for Employees