Some executives may overlook implementing time tracking software in their companies. They may want to avoid disrupting employees, or simply not see the ROI on a new time tracking system. The reality is that there are plenty of benefits to using it. Time tracking software can boost more than productivity — it can also impact profitability by reducing spending costs and increasing production. Here are three ways that implementing time tracking software can save money for your company.
1. Identify and eliminate less profitable tasks
Time tracking software that allows users to log working hours into specific categories, such as billable and non-billable hours, and tasks around tickets, allows you to see where time is being spent on tasks that consume precious company resources without a significant ROI. By keeping an eye on tickets, as well as other tasks performed by your employees, you’ll see the breakdown of where your team is spending the most time and can determine whether there are other, more efficient ways to complete those tasks or answer customer questions. Tasks that are not cost-effective can be weeded out of production and replaced with more profitable work.
Time tracking software can boost more than productivity - it can also impact profitability by reducing spending costs and increasing production.
2. Avoid over-staffing
Time tracking software tracks the lifespan of a project or all activities around tickets (the effort to solve each ticket, including research and testing) from inception to completion. Understanding how long a specific undertaking takes allows you to only schedule resources that are essential. Over- and under-staffing remains a major concern for small and large businesses, which is why it is imperative to consider the estimated timeline. One example is Noventum, an Information Technology company specializing in custom software development, which used time tracking software to increase visibility into where resources are spending their time and what they are working on. The data provided through time tracking software makes it easier to predict precisely how many resources will be required to start and finish in a cost-effective manner.
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3. Improve employee morale
Time tracking signals to your employees that you are creating a business that you want to grow and expand. Employee morale is paramount in establishing a functioning organization. On top of ensuring that your employees work in a safe environment, that they are paid fairly for the work they do, and that they are treated with respect and dignity, they want to see that you have a vision, a goal, and a bigger picture. Working for a company that underpays its employees or that doesn’t hold them accountable for being on time, can negatively affect an employee's willingness to work hard and strive to make their company exceptional.
On top of ensuring that your employees work in a safe environment, that they are paid fairly for the work they do, and that they are treated with respect and dignity, they want to see that you have a vision, a goal, and a bigger picture.
It’s about more than keeping workflows on track; paying attention to time signals that you value people’s time and want to bring value to the employee and customer experience. A productive team is a happy team. It helps you set the foundation for a company that is here to make an impact on society. Improved employee morale will make it easier for employees to stay focused, put forth high-quality production, and decrease their likelihood to look for other employment opportunities —which saves you the cost of having to recruit and train new employees.
[Related read: The future employee experience is personalized]
Bank on the time savings
When time tracking helps you save time, you can put more hours into innovation and problem-solving — on ideas that are completely new. These new ideas can be tracked and monitored in the same way, so that testing and iterating on them is more efficient, too. With the right software tool, time tracking is an accurate, insightful and worthwhile investment that will yield more money and time for your company.
Ólöf Kristjánsdóttir is a marketing director at Tempo. An experienced marketer, she has been with Tempo for 3+ years. She studied business administration and international relations before joining the software industry. Originally from Reykjavík, Iceland, she enjoys running, reading and meeting new people.