Time tracking isn’t a novelty, it’s been around for a very long time, but it seems that we’re just now getting the full grasp of it and the ways it can benefit any business. More companies, in different industries, are realizing what are the benefits of team time management software and we’re seeing how the time tracking software industry is growing.
Today, we’re exploring the statistics about time tracking, and what do they mean for every business.
General Time Tracking Stats
It’s scary that in the era of computers and software, most employers are still using outdated systems for employee time management.
To be exact:
- 38% of employers in the US use punch cards and paper timesheets
- 58% of employers in Canada use the above mentioned systems
This is an insanely huge number of companies tracking time the wrong way. These systems cause huge losses, both for the company and for the workers. Even the US employers admitted that the system is flawed - those surveyed said that they need to correct 80% of timesheets they receive.
To be fair, in some industries it’s impossible to use the usual team tracker app because people don’t work on the computers. However, there are other modern ways, which can certainly replace the employee time tracking forms.
We’re seeing that employers usually use employee time tracking machines to track hourly workers, which makes perfect sense. If you’re paying someone by the hour, you should have accurate data on how many hours they’ve worked.
However, only about 19% of employers track time of salaried workers. Which, in our opinion, is a mistake, given that daily time tracking helps close about 80% of productivity leaks. The fact that you’re not paying your employees per hour, doesn’t mean you can’t gain something from the clock tracker.
Count Your Losses
If you still aren’t using electronic employee time clock apps, we’re about to change your mind. Companies lose a lot by not tracking their employees’ time, and here are the numbers:
- Every other employee admits that they practice buddy punching or time theft, which makes companies lose about $373 million per year (due to buddy punching) or $11 billion per year because of time theft
- If you’re not recording email activities, you could be losing $50,000 per employee per year
These are significant loses. Not to mention the clients you could lose due to poor project estimates that couldn’t be better simply because you didn’t have the data to make a better assessment.
How Can You Proceed?
Well, by implementing the best team time tracking software, of course! It’s not going to be easy, and it’s going to take time. First, you need to discuss it with your employees. Then, you need to move on to research, testing and trials. Once you’ve done all that, you can have your IT setup the software.
It’s easier said and done, and there are a lot of small things you should pay attention to along the way. Make sure you’re following law requirements regarding the legalities of such software, as well as if the employees need to consent to being tracked. Additionally, there are a lot of software options out there and you can easily get lost in the sea of features. Make sure you select the software that has features which you actually need, and want to use. Some of these options are crazy expensive, and you don’t want to spend your money on a software which will be of no use to you.
Thankfully, there are a lot of inexpensive time clock software options available out there, so you’ll surely find the one that fits your needs and won’t take all the money in your bank.
Considering the benefits of time tracking software, it really is a wonder why isn’t everyone using it? The reasons vary. Some employers feel that it’s a sign of distrust, and don’t want to create such an environment. Others claim that it’s against transparency, and so on.
However, there are still those who recognized it’s full potential and are not afraid to use it. Are you one of them?