What is Time Tracking software?

Time tracking software tracks the total time spent by employees on tasks and projects by capturing employee time, hourly wages, and client billing rates. Time management software enables enterprises to have a reliable source for employee attendance and working hours and to automate invoicing and payroll management functions. In this guide, we'll answer all your questions related to time tracking software, including its functionalities, features, benefits, and things to consider when choosing a new time management tool for your organization. For tools related to time tracking software, you can also see our project management, workforce management, and time clock software.

What are the benefits of Time Tracking software?

• Effective tracking for freelancers and remote workers: As businesses increasingly move toward mobile workforces, this trend poses multiple time-tracking challenges. It is frustrating to track attendance and time worked for each freelancer or remote employee separately. Time tracking apps record attendance and time worked for employees and collects it on a dashboard for managers. Some time tracking tools also offer automated screen capture, which enables users to monitor the total time spent on non-work activities by remote workers and freelancers.
• Efficient payroll management: Payroll calculation is a time-consuming process. Payroll managers need to coordinate with employees and their managers to collect a series of information such as timesheets, hourly wages, leave records, and overtime pay to calculate employee's compensation. Time tracking tool captures in- and out-time for employees and provides users with reports on total hours worked and leave taken. The software also incorporates other payroll calculation factors such as differential wages and employee incentives.

What are the typical features of Time Tracking software?

• Billable and non-billable hours: Track the hours that are billable and those which are non-billable, to ensure accurate payment.
• Online time tracking: Capture employee and task times using online applications that can be accessed and synced through a browser, mobile app, or desktop application.
• Automatic time capture: Record in- and out-time of employees and calculate number of hours worked. Users can also capture time using biometric and other electronic time-capture methods.
• Employee database: Store staff contact information and project statuses for up to date employee management.
• Overtime calculation: Record and manage overtime hours for employees to ensure fair and accurate payment.

What should be considered when purchasing Time Tracking software?

• Mobile access: Due to an increasing trend of remote workforces, mobile access has become a necessity in today's software market. A time tracking mobile application allows remote workers to record their schedules, submit time-off requests, and view changes to their schedules on the go. Some products also offer GPS tracking, which enables managers to track the time spent by their field staff at a client location. Businesses that currently have, or are planning to introduce remote working policies for their employees within the next two to three years should evaluate products based on this functionality.
• Compliance requirements: Today's businesses are subject to a number of payroll and wage-related compliances such as the Fair Labor Standards Act (FLSA), the Affordable Care Act (ACA), and the Defense Contract Audit Agency (DCAA). For example, the Fair Labor Standards Act (FLSA) mandates strict standards regarding minimum wages and overtime pay and imposes severe penalties on business that do not comply. A time tracking tool that tracks these compliances alerts managers when employee hours go beyond the recommended levels and ensures that overtime pay is incorporated in the employee payroll. Time tracking tools also provide standard reports related to these compliances. Businesses should prepare a list of compliances and regulations in their line of work, and shortlist a time tracking system that supports them.

What are the main trends related to Time Tracking software?

• Artificial intelligence (AI) is the next big thing in time tracking system: The need for efficient methods of employee monitoring is fueling the demand for artificial intelligence in attendance software. AI technologies such as facial recognition provide time tracking software vendors with fool-proof ways of capturing employee time. Not only do these methods automate time capture of employees, they also eliminate instances of buddy-punching. We can expect to see more use cases of artificial intelligence in time tracking system within the next five years.
• Adoption of chatbots is on the rise: Adoption of chatbots is growing faster than ever. Following this trend, time tracking software vendors have also started exploring a number of use cases for chatbots in their software solutions. For example, chatbots can interact with employees to capture the status of their current tasks. The information is auto-populated on time sheets, thereby eliminating the need to manually track employee activity.