These are just a few reasons service companies don’t track their time. This can lead to additional administrative headaches and reduce creativity and focus in your team.
Time tracking can bring many benefits to your business. It doesn’t lead to micromanaging or deprivation of creativity if it is done right.
1. Employees on the right track
Your employees might not be slacking. It could be that they lack a sense of urgency for deadlines. They might not see the need to do any other work than what is on their desk at that moment.
Time tracking allows your team to take control of their workload. Employees can track each task. They can also see how well they do. You can make time tracking a personal challenge and see if you can beat your previous time.
They can also see all jobs in the queue if they use time tracking software always to have something to do.
2. Get better quotes and estimates
You can get started with clients by providing accurate quotes. You can adjust your estimates by keeping detailed records of the time it takes for each job.
Using time tracking software, you can quickly run reports on various tasks and their completion times.
3. Clients will be billed for exactly the work done
If you ask, most team members will be able to give you a rough estimate of the time it would take to complete certain tasks. However, a rough estimate doesn’t mean you have a detailed log. If you don’t keep track of the actual time spent on a job, you cannot bill the client.
4. Keep track of contractors
You must be careful about how many hours they work and their workload to ensure you don’t blow your budget when you hire freelancers or contractors.
Your contractors should fill out the same timesheets as your staff. You can track the performance of different contractors to help you allocate work.
5. Prioritize projects
A time tracking software allows you to use the calendar, milestones, and staff allocation features to adjust your schedules. This allows you to quickly re-allocate shift deadlines and hours for the high-priority project.
6 Check out the job status at a glance
You can do it with time tracking software. Log in, and you’ll be able to see every job’s status at a glance. You can also narrow your view to specific types of jobs or departments. If your software is stored in the cloud, you can access it from anywhere.
7. Improve project schedules
Are you finding that milestones and projects are frequently overdue? This can harm client relationships.
Perhaps it is time to take a hard look at the timeframes and schedules of your projects before you start yelling at your team for not working faster. Is your schedule too ambitious?
Time tracking software will show you how long each job takes. If you notice consistent patterns in different project types/stages, you may need to adjust your schedule.
8. Track time across different devices
What happens if remote workers, team members on-site, or staff work from all over the globe? Is it possible to keep a time-tracking system consistent?
A cloud-based time tracking system will allow your entire team to accurately and quickly enter time no matter where they may be.
9 Concentrate on strategic projects
The greatest benefit of tracking time in your company is the ability to report on it. This data can help you focus your strategy and track your progress towards your goals.
10. Compare projects over time
Do you want to compare the features of different projects? Do you want to know if your task has been completed faster? Do you want to track the changes in the ratios of different types of projects over time?
You can find the answers if you record the data.
11. Raise your rates
How can you tell when it’s time for your rates to go up? You could consult the tarot or read your tea leaves to find the answers. Or, you could use data from your time tracking to determine when it’s time for you to raise your rates.
That’s right. If you are pricing correctly, you can quickly look at the time you spend on each task, the charges-out rates for your staff, and the overall profit. If you are not pricing accurately, it is time to get the numbers right and make changes.
12. Adds value to the sale
Potential buyers could find it extremely helpful to access your timesheet records if you are looking to sell your business. This shows that you are a professional and reliable company and allows potential buyers to see what the team can produce.
13. Examine team performance
It can be very helpful to discuss a particular set of data when your annual performance reviews approach. You can compile data on employees to see how they are doing with other team members. This information can be shared during the review.
It is also useful for your team members to compare their performance. This can help you identify strengths and areas to improve.
Don’t let time be the only factor that judges performance. It’s only one of many factors – quality work and providing value to clients are equally important.
14. Manage the dreaded scope creep
Scope-creep has an impact on all service businesses in some way or another. Clients may think they only need one thing but add many tasks to the job. You’re soon tackling a completely different project than you originally planned, with a compressed timeline and hours.
You can identify scope creep and manage it before it occurs by monitoring your budget and time through your time tracking software.
15. Identify areas that need improvement
One thing to look out for when conducting a productivity audit to improve your continuous improvement strategy is tasks and areas that take longer than usual relative to the project. It could be that your team members are having difficulty with certain tasks. This could indicate that there is a process that needs to be adjusted.
16. It has a professional appearance
Clients love to answer questions. Who is working at this stage? We are where? What is the purpose of life? I need a recipe for peanut butter brittle.
Although you may not answer all the questions, time tracking software allows you to respond to even the most complex client queries.
17. Check to see if someone in your team is exaggerating
People sometimes put their hand up for various projects but then realize that they have taken on too many. This is not a problem for everyone. Some people have a problem because they love helping others or lean on their skills. It can be a problem for others if there are too many projects.
You can see who was assigned what tasks and how many each team member is working on by keeping track of the work in your time tracking software. You should be able to avoid overloading problems before they become a major burden.
18. Report hours accurately for compliance
For reporting purposes and compliance reasons, some industries require your teamwork hours. Compiling and sending off this information can be a daunting task at the end of each quarter or month.
19. Reward excellence
Staff, especially those unfamiliar with time tracking, worry that clocking in their hours will make them appear lazy. In reality, the opposite is true. A detailed log of hours worked allows you, the business owner, to see when great work is being done and reward accordingly.
Promotion may be appropriate if someone consistently performs above their targets. You can also encourage staff to take on challenges or time-based competitions.