What is time tracking?

Time tracking  refers to how an organization records the work hours of hourly employees and ensures that those employees are correctly remunerated for their time.

 It is a subcategory of  time and attendance , which is a broader term that typically includes time tracking and other elements such as attendance, holidays, billable hours, and scheduling.

Time tracking involves four main components:

• Time Entry
• Timesheet Approval
• Payroll
• Reporting

These are often handled by time tracking software designed specifically for that purpose.  However, some organizations still perform time tracking manually, either   with the help of  spreadsheets or entirely on their own.

Time Entry

Time entry is the daily process by which an employer records employees' starting times, finishing times and any holidays not covered by the employee's contractual agreement. These times are called timestamps and may be   recorded on a physical document called a timecard, or via an electronic method such as a spreadsheet or time tracking software .

Time entry is often referred to as ""clocking in and out"" or ""punching in and out"", the latter of which refers to ""punching"" the button on a physical time clock that marks the time on a paper timecard. Time tracking functions built into point-of-sale systems often use the employee's first login and logout at the end of the day to perform the time entry and grant system access.

Timesheet Approval

Timesheet approval is necessary for an organization to ensure accuracy and compliance in compensation. Typically, a manager will review employees' timesheets for a pay period to verify that they are correct. Then, an HR manager will calculate the total hours worked along with any overtime hours or use time tracking software.

Payroll and Reporting

One of the primary purposes of time tracking is to provide accurate and approved hours for payroll processing. Time tracking should produce some reporting that HR can rely on for payroll calculations so they can process payroll.

By analyzing time tracking data, organizations can also identify patterns and trends in the following key performance areas:

• Employee productivity
• Project cost
• resource usage

Time tracking reports also have strategic benefits, as they can help an organization conduct budget analysis or identify discrepancies in compensation.

For example, are certain employees constantly submitting overtime requests? You   can use your time tracking data to figure out if you have the right staff or technology to help employees work efficiently within standard work hours.

What is time tracking software?

Time tracking software  is a digital tool that uses a unique identifier to track an employee's arrival and departure time. It is also often used to track time on specific projects or tasks. Time tracking software can be used by freelancers, teams, and businesses to improve efficiency, accurately bill clients, and gain insight into time use.

Time tracking software will typically include the following features:

• Time Entry Management:  Record and track employee working hours by entering start and end times as well as any breaks or gaps.
• Project and task tracking:  Allocate employee time to specific projects or tasks, allowing accurate tracking of time spent on various activities.
• Timesheets and Reports:  Generate timesheets or reports that provide a summary of recorded hours, project progress, and other relevant data.
• Billable Hours & Invoices:  Create invoices based on employees' recorded time, and accurately bill customers.
• Analysis & Insights:  Gain insights about productivity, project profitability, time allocation and identify areas of improvement.

For example,  HRMantra  ^® Time Tracking  is a comprehensive solution that helps you simplify and streamline the process of tracking and managing employee work hours. With its user-friendly interface, employees can easily record their time entries, allocate hours to specific projects or tasks, and request time off. Plus, it integrates easily with payroll systems to ensure seamless and error-free calculation of wages. It is an efficient way to manage time tracking for both HR and employees.