How Time Tracking Boosts Productivity for Teams and Beyond

As a leading time tracking software solution for many years, we know a lot about time tracking and productivity: and we want to show you the benefits of tracking work hours daily. Continue reading to know more!

7 Benefits of Time Tracking for Companies:

• Improves focus on individual task

• Ensures accountability

• Generates valuable data and insights

• Guarantees fair compensation for time

• Promotes organization

• Reduces wasted time

• Improves accuracy in future estimates

#1 Forces people to focus and single-task 

Multitasking is a myth. 

We know that by now thanks to several studies – it’s hard for our brains to effectively multitask. Did you know? Our IQ literally drops when we attempt to do one thing at a time.  Most of what is commonly defined as multitasking is actually task switching, but that’s not effective either. 

Instead, tracking time forces you to focus on the task at hand. Logging your hours makes you aware of how you're spending each minute.

This not only improves work quality but helps minimize distractions, for a  deeper project immersion, creativity, and innovation. 

#2 Keeps people accountable 

Accountability is a tricky word.  Nobody likes their work ethics and integrity questioned, and teams resist heavy surveillance and monitoring tools (and rightly so!).

However, a company culture that is built on transparency will value the fact that everybody in the organization tracks their time. By having an account of what people have been working on, everybody stays on the same page and knows which problem or task should be addressed next. 

This only works if everybody in the organization is on board, employees and managers alike. 

#3 Provides Data and Insights  

You can't improve what cannot be measured, right?

A tracked record of how the projects took, how much budget you used over a timeframe, and how much effort a certain task or phase took – all of this is crucial data you can get from time tracking. 

Once you've gathered the data, you can identify wasted time, cost sinks, and other inefficiencies in your workflow, such as repetitive tasks, prolonged meetings, or underutilized team members.

Ultimately, a  data-driven approach provides a clear picture of whether your work is productive and profitable. Instead of guesstimating, you have the numbers available to make informed business decisions. 

Not to mention, the data collected can serve as a benchmark for future projects (see paragraph #7) helping you to continuously improve your processes. 

#4 Make sure time is valued and paid correctly  

Time is Money, as the old saying goes.

I'm pretty sure anyone reading this article enjoys getting paid for their work - so ensuring it's accurately tracked and accounted for is crucial. More often than not, numerous client-related tasks go unnoticed and, consequently, unpaid (the horror!).

While offering discounts is entirely your prerogative, it's essential to track every bit of work performed.

Using a time tracking tool allows you to capture all those overlooked activities, ensuring that no effort goes uncompensated. This becomes especially vital for businesses that operate on a billable basis—such as freelancers, consultants, accountants, and law firms—where keeping track billable and non-billable work is a constant necessity.

#5 Keeps people organized 

It goes without saying: if you know how and where you spend your time, you can optimize it. 

Understanding how you spend your time allows you to maintain a more structured and efficient schedule.

Gone are the days when you’d wonder, "Who is handling what right now?" With consistent time tracking integrated into the daily workflow, this information is at your fingertips.

And let’s not overlook your own efficiency! When managing multiple projects and teams, a scattered schedule can lead to chaos. Time tracking is indispensable for managers, helping them stay on top of their responsibilities and ensuring they can oversee their tasks and teams effectively.

#6 Less time wasted 

And if you optimize your time, do you know what happens? You waste less time! 

I don’t think it’s necessary to explain why wasting less time is a good thing, but here are just a few benefits: deadlines are met, budgets are respected, projects are concluded smoothly, clients are happy, and employees don’t overwork to make up for a lost time, the work day finished on time, work-life balance improves… I think I’ve made my point here. 

#7 Accurate future estimates 

Last but not least, by analyzing how much time a certain project or task took, you can make better estimates for the future.

Historical data allows you to keep track of how long similar tasks will take, providing a solid foundation for your future planning. You can quote projects more accurately  for your clients. Accurate time estimates mean that you can set realistic deadlines and resource allocations, which not only boosts client satisfaction but also helps in maintaining a healthy work-life balance for your team.

All this boils down to the data will be provided by the time tracking software you’ll use. This software acts as your business's timekeeper and analyst, offering invaluable insights that drive smarter decision-making. 

When Time Flies: stats on wasted time in Companies

• Employees spend an average of 26% of their workday on avoidable administrative chores, unnecessary tasks, and outdated ways of working. (Source: the-cfo.io)

   
• Approximately 24 billion hours are lost each year due to unproductive meetings, costing U.S. companies an estimated $399 billion annually. ( Source: thetreetop.com)
   

• Some organizations lose up to $1.3 million per year due to inefficient tasks that burden employees. (Source: ciodive.com)

• 32% of workers claim they waste time due to a lack of motivation to work harder, while 30% are unsatisfied with their jobs. (Source: timedoctor.com)

• Inefficient processes, including an overload of paperwork, are primary causes of wasted time during the workday, affecting 44% of employees. (Source: newsroom.planview.com)

• Employees spend an average of 31 hours per month in meetings, with 50% of that time considered wasted. (Source: Source: goldenstepsaba.com

All of these problems can be solved with proper organization and a proper time tracking tool.

Conclusion

Tracking time should be part of a company’s daily workflow. When work hours are registered, the company benefits in terms of productivity, efficacy, and business intelligence. So don’t hesitate and get started with a smart, insightful time tracking tool today!