How to track employee work hours accurately

Tracking employee time accurately is an integral part of owning a business. This data ensures that you have an accurate log of employee hours, meaning your records stay compliant, and allowing you to compensate employees correctly for their time.

Read on to discover the many benefits of accurate time tracking as well as the significance of accurate reporting and the potential risks and pitfalls of inaccuracies.

The importance of accurate time tracking

So, why exactly is tracking employee time accurately so important? Well, for one, it provides payroll accuracy, which is a cornerstone for trust and morale within the workforce. It also ensures that you are compliant with current labour laws.

Failing to do so can put your company at risk of legal penalties and disputes. Overpaying or underpaying employees comes with a long list of complications, including wage and hour lawsuits that can tarnish the reputation of your company.

Time tracking accuracy also has the added benefit of driving operational efficiency, so prioritising it is vital.

Methods for tracking employee hours

There are various employee tracking methods available, ranging from traditional to modern.

Let’s take a look at the options you may consider using for your business.

Traditional time tracking methods

Manual timesheets

This traditional time tracking method for employees was originally popular for its flexibility and accessibility as employees could fill out a manual timesheet anywhere. However, manual timesheets are prone to errors and entering the data into the system by hand is a time-consuming task.

Punch clocks

This traditional time-tracking method requires employees to clock in and out physically using a card or a badge. While this method is simple and cost-effective for companies, punch clocks have limited capabilities compared to advanced technology and aren’t suitable for workplaces with remote employees.

A traditional time tracker might be cheaper than modern time tracking methods, but their potential drawbacks, such as errors and fraud risk often outweigh the positives.

Modern time-tracking methods

Employee time tracking software

This modern solution has the advantage of accurate and real-time employee hour tracking and minimises the chance of errors. It has the capability to generate detailed reports that include employee hours as well as attendance and overtime. This advanced option can also be integrated with payroll and accounting to streamline the payroll process.

GPS-based tracking

Modern technology now allows employee hours to be tracked by monitoring employee location. This method allows maximum transparency for remote workers with real-time data. The downside to this method is that it relies on GPS movements, which require your employees' consent and may raise compliance challenges.

Mobile apps

A time tracking app for employees allows an organisation to track their working hours via their smartphones. The upside to this is convenience and flexibility, but the downside is that it relies on an employee having sufficient phone battery and internet access.

The modern methods detailed above offer major benefits including accuracy, flexibility as well as real-time data.

From clocking in apps that record start, end and break times, to producing accurate timesheet reports using real-time data. Your time management can be revolutionised with the likes of BrightHR's Blip and many more of our innovative features.

Best practices to track employee hours accurately

To successfully track employee hours, you will need to implement several best practices.

Establish time tracking policies

A clear and concise time tracking policy sets expectations for clocking in and clocking out, as well as recording breaks and overtime. For maximum success, ensure that your time tracking policy is communicated to employees via an employee handbook, training sessions and regular reminders.

Training and guidance

Provide employees with sufficient training and guidance on time tracking, highlighting the importance of accuracy and its impact on payroll and overall business operations.

Standardise time tracking

To ensure consistency and accuracy, a standardised procedure should be rolled out throughout the organisation to avoid confusion.

Utilise technology

Invest in an automated employee time-tracking software that provides real-time data. Take advantage of features such as time clock integration, automated reminders, real-time tracking and geolocation tracking.

Encourage accountability

Teach employees the importance of accountability and encourage them to take ownership of their time-tracking responsibility.

Communicate effectively

Open communication is critical to ensuring clarity and understanding.

Establishing the above best practices has many benefits for the organisation and the employees alike.

How BrightHR can help with accurate tracking

Inaccurate employee time tracking can lead to compliance issues, resulting in legal consequences, reputational damage, and financial losses. Not to mention, it can make it challenging for you to plan and schedule work effectively, leading to inefficiencies in operations.

You can make inaccurate time tracking a thing of the past with BrightHR’s innovative time-tracking software. Manage staff hours, breaks and overtime easily and efficiently and keep an accurate record of vacation time and absence with a simple-to-use tracking software and mobile app.

BrightHR handles all your time-tracking needs, leaving you with more time to handle other areas of responsibility and focus on company growth strategies. Book a free demo today and see how we can help you track employee time easily and efficiently.