Now that you know how important it is for your business to track employees, let’s discuss the five most common ways to do so, from manual time tracking, manual timesheets, time tracking software, traditional time clocks and GPS clock-ins.
Here are the five key ways to track employee hours:
1. Manual Time Tracking
The easiest way to start if you’re not doing any sort of time tracking is to start manually. Keep a register where employees record their in and out times.
Although manual time tracking is a good way to start if you have a very small team, doing manual timesheet calculations can prove both time-consuming and lengthy. Errors may also be introduced while doing manual calculations, which can result in erroneous payroll calculation.
2. Manual Timesheets
Manual timesheets are just a notch above manual time tracking. Instead of making the entries using pen and paper, you record time in and out on spreadsheets such as Microsoft Excel and Google Sheets.
Due to mathematical formulas provided by these software, calculating total time worked is quicker and easier; the error that might be introduced in manual calculation is also eliminated.
Manual timesheets are best for businesses having a limited number of employees so that the time investment is not significant.
3. Time Tracking Software
Time tracking software can automate employee hour tracking for all employees—salaried, hourly or contractual. Employees can use time tracking software across devices such as desktops and mobiles as well as within work apps, making it easier to track time.
The use of time tracking software also enables you to track both billable and non-billable hours, improving workforce productivity and project expenditure. If you schedule your employees into shifts or assign them tasks, the time tracking software can also prompt them to clock their in or out time if they forget.
There are many time tracking software available on the market. Which one you use depends upon your specific requirements. Forbes Advisor evaluated multiple time tracking software on numerous parameters to arrive at the best time tracking software for your business.
4. Time Clocks
If all your employees are concentrated in one or two locations, you can choose to install a time clock where employees log their in and out times. This is especially suitable for manufacturing units where time tracking apps cannot be used because employees do not regularly access their desktops or smartphones.
Setting up a time clock station or kiosk can be an added cost but it is one time and helps you streamline the employee hour tracking process. The output can be automatically integrated to the payroll or HR system.
5. GPS Clock-In
If your employees travel frequently, a desktop or mobile employee tracking app may not suffice. You can use geo-fencing or GPS tracking apps to accurately log where your employees are working. This can then be seamlessly integrated into payroll not just for wage calculation but also for other compensations linked to their performance.
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Bottom Line
Whatever tool you use, it is important to track employee hours because it gives you the necessary data required to make decisions that impact business growth. Tracking employee hours ensures better employee performance, legal compliance, accurate payroll processing and work culture transparency.
FAQs
The best way to track your employee hours accurately is by using a time tracking app. Online time tracking solutions greatly reduce human error, so you and your employees are less likely to make simple data entry errors. You can also do a few things to ensure accuracy when you're tracking employee time.
How do I track my employees' daily work? ›
When you need to monitor employee time and tasks simultaneously, time tracking software can simplify the process. These tools have built-in time and activity trackers that record how your employees perform during the workday. Time-tracking tools like Time Doctor, Harvest, and Toggl can do more than create daily logs.
What do employers use to keep track of how many hours an employee has worked? ›
For example, they may use a time clock, have a timekeeper keep track of employee's work hours, or tell their workers to write their own times on the records. Any timekeeping plan is acceptable as long as it is complete and accurate.
Is there a tracker to calculate hours worked? ›
The DOL-Timesheet App helps track regular work hours, break time, and overtime hours.
What are the 2 ways in tracking the work hours of an employee? ›
Working hours can be tracked using manual timesheets, time tracking software, time clocks or fully automated time and attendance solutions. Unless you have a very small team, manual timesheets can be very difficult to track and manage.
What is the easiest way to calculate hours worked? ›
How to calculate hours worked
- Step 1: Determine start and end time. Simple as that. ...
- Step 2: Convert time to military time. ...
- Step 3: Subtract start time from end time. ...
- Step 4: Subtract unpaid breaks. ...
- Step 5: Convert to decimal format. ...
- Step 6: Add up total hours for pay period.
You can use mobile apps to track both clock-in and -out times for hourly employees and to track time by task for salaried or contract employees. A mobile app is another common option offered by most scheduling software. With a mobile app, employees can access a time clock or timer via their smartphones.
How to record working hours? ›
There are a number of steps you can take to accurately record your hours worked, including:
- Pen and paper timesheets. Writing down how many hours you've worked is the most traditional method of keeping on top of your records. ...
- Time clocks. ...
- Timesheet software.
To-do lists and automated reminders can be effective in keeping the team focused and organized. Monitor and adjust workloads regularly: Use time tracking and workload management software to measure and adjust the team's workload so that tasks align with project goals and schedules.
How do you track employee time and attendance? ›
Clockify is the latest free attendance tracker that helps you track work time and employee attendance. See who was present, when, what they worked on, and how long. Start tracking time — It's Free!
Answer and Explanation:
A clock card or timecard is one of the source documents. The company uses it to track each employee's labor hours. It is where each employee registers the check-in and check-out times. So, it is the source of the number of hours worked for direct labor cost computation.
Is there a software to keep track of working hours? ›
Paymo – best free time tracking software for small teams of up to 20 people. TimeCamp – a simple attendance tracker for your employees. Clockify – an employee monitoring tool with GPS tracking. Everhour (max.
What is the simple way to track work hours? ›
Time Management as The Key to Keeping Track of Work Hours
- Create a to-do list.
- Set goals.
- Prioritize.
- Use dedicated time tracking apps.
- TimeCamp – FREE time tracking app and attendance management.
- Pulse – simple time tracker app.
- WorkLog – mobile time tracking app.
- focus booster – time tracking app for Pomodoro technique.
Summary: The Best Free Time Tracking App of 2024
| Company | Forbes Advisor Rating | Number of users |
|---|
| TimeCamp | 4.5 | Unlimited |
| Toggl Track | 4.4 | Yes, for 30 days |
| Paymo | 4.4 | Yes, for 15 days |
| My Hours | 4.3 | Unlimited |
3 more rowsMay 6, 2024
How to Create a Timesheet in Microsoft Excel
- Download an Excel Timesheet Template.
- Prepare the Timesheet Template.
- Enter Identifying Information.
- Enter the Rates of Pay.
- Enter the Employee's Hours Worked.
- Calculate and Enter the Type of Hours Worked.
- Verify Your Information and Save Your Timesheet.
Clockify is a time tracker and timesheet app that lets you track work hours across projects. Unlimited users, free forever. Start tracking time — It's Free!
How to track employee hours in Excel? ›
How to calculate hours worked in Excel
- Create labeled placeholders. ...
- Input the times into their respective cells. ...
- Use a formula to calculate hours the employee worked. ...
- Determine the employee's pay for that shift. ...
- Calculate the total weekly hours and pay.
#1 Work Hours Tracker App. Use Apploye, the best work hour tracker that let you keep track of hours worked. Track work hours, bill clients, manage timesheets, and calculate payroll based on worked hours.
What spreadsheet to keep track of working hours? ›
Spreadsheet time tracking method
Depending on what you want to see in your timesheet report, you can open an Excel spreadsheet or Google sheet, and add "Start Time", "End Time", "Hourly rate", "Client", "Activity", "Total Hours Worked", "Overtime", "Amount earned", and other parameters you'll need.
