7 Reasons Why Time Tracking Is Crucial For Business Growth
There is a common assumption that time tracking means – “micro-managing”. But, with today’s flexible workforce and great data comes greater responsibility – so without a time tracking software in place it is impossible to tell if this responsibility is being carefully handled.
Secondly, tracking time offers real-time visibility into business units and brings out faulty operational metrics that would otherwise remain unobserved. That’s why many businesses use time tracking to understand how and on what this limited asset is been spent on.
Time tracking is not just about knowing employee login or break hours – it’s another way of monitoring progress, motivating employees and creating a habit of committing to deadlines. What else does it offer? Here are top 7 reasons why time tracking is important for businesses.
1. Time tracking improves productivity by 48%
Without time tracking, each day would begin with puzzling questions. The team will start their day trying to figure out ways to finish important tasks within the set time. If the day is not well planned, it might lead to procrastination.
On the other hand, time tracking helps design the schedule for the day. With automatic time tracking system in place, overseeing team members becomes futile - because they all know what to do and in how much time they’ll have to complete assigned tasks. The likelihood of procrastination reduces, and each day aligns towards one goal – improved workflow leading to increased productivity.
2. Time tracking helps prioritize tasks
Tracking time is the only way to identify and fix excuses that delays everyday tasks. It makes employees accountable to whether they have focused on the most important tasks for that day. The point here is - giving employees an opportunity to see and understand where they stand and nudge them to complete those incomplete or partially completed tasks.
3. Time tracking helps in precise estimation of future projects
Reports from previous projects are a good source of information that gives insight on how future tasks can be handled and estimated.
Many servicing companies have two different pricing models –project basis or hourly basis. For both, time tracking is important for accurate reporting and invoicing.
If a team works on an hourly basis – tracking time helps calculate the amount of work delivered by each team member, track productivity and create accurate invoices.
If it’s on project basis – time tracking helps quickly access the overall progress, track individual performance, get invoicing right and deliver perfect estimates for future projects.
4. Time tracking shows when to hire resources
Time tracking data validates as to when resource hiring is required. With an increase in workload, employee performance might dip leading to poor productivity. Time tracking sets the alarm and helps management understand whether to go for staff augmentation or reduce workload.
Secondly, unplanned absence leads to missed critical deadlines and cumulates workload on other team members. With a proper time tracking system in place, team members get to handle the situation better by preparing in advance.
5. Time tracking makes reporting more convenient
Time tracking software facilitates creation of time sheets/live reports and provides real time data of individual projects. Management can easily access and evaluate project at a particular time/day/week/month – thereby predicting its success rate. Also, these time reports can be shared within the managers and with the clients so any issues pertaining to the project can be sorted quickly.
The data gives enough understanding on the timeline required to complete future tasks – so they can promise clients accordingly.
6. Acknowledge the performance of team members:
Tracking employee time helps management tag staffs and identifies their working capacity. Let’s say a team member is taking too long to complete a certain task than his peers, his/her timesheet can be used to educate them on where they went wrong. Project managers can use this as a guide to straighten out the efficiency of individual employees or overall team.
7. Time tracking leads to client satisfaction
Taking on a client project means, taking the responsibility of helping clients’ reach their goals as promised. A business can lose clients if they miss a series of critical deadlines. At the same time, meeting deadlines demonstrates a businesses’ authenticity and the competency to deliver more.
Time tracking helps keep the project deliverables and quality under control resulting in happy and satisfied clients.
It’s never too late to implement time tracking at your company:
Yes, time tracking is all about helping businesses make good decision on resource management, attain productivity and desired deliverables. Time is an investment that shapes the future– but achieving success in the long run depends on how well time is utilized, at present. Thankfully, time tracking software Handdy helps keep your operations run efficiently. It helps you identify areas of improvement in both employee and project strategy wise.
Handdy software does not demand any extra effort to learn and use. It has basic to advanced features that every business need. Start your free trial now.
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