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The Pros and Cons of Time Tracking in the Workplace
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The Pros and Cons of Time Tracking in the Workplace

September 25, 2019

It is not uncommon for businesses to use time tracking tools to ensure employees are productive at work. Despite their popularity, the use of time tracking software remains controversial. 

Most experts agree that it has both pros and cons. In this article, we’ll have a look at the advantages and disadvantages of time tracking in the workplace.

Advantages of Time Tracking

According to a report, the US economy loses about 50 million hours per day in productivity. This equals to over $7 billion. This is a huge amount which shows how important it is to time track. Companies can recover about $52,000 per professional in billable time by tracking hours. 

Let’s look at the pros of time tracking now: 

  • Higher Productivity

This one is a no brainer. We know that people who track time are better at completing jobs and hence are more productive.

A time tracking software can help you know where employees spend most of their time. You can use this information to assign the right job to the right person and get more out of them.

Plus, it can help employees improve their habits. Multitasking, for example, can drain about 40 percent of productivity. Concentrating on one project can help people be more productive.

  • More Accountability

Time tracking allows businesses to know how each employee is performing. This is very important since projects require teamwork. The laziness of one person can cause an entire project to fail.

Accountability makes people more responsible and less likely to default.

  • Better Measurement

Time tracking allows managers to know exactly how an employee is performing. Managers can use this data to measure performance and appraise employees based on it.

Plus, since information is right in front of you, there is little to no risk of false or incorrect decisions. There is transparency which makes employees trust the process.

  • Changing With Today’s Time

Time tracking tools can be very useful when working with freelancers or remote workers. About 40% of businesses are now hiring freelancers and they need time tracking software to calculate payments. Such tools protect both employees and employers and also give freelancers a sense of achievement.

This is very important since about 62 percent of remote workers feel neglected and underappreciated.

  • Time and Cost Saving

This is one of the biggest benefits of using a time tracking software. Certain jobs require employees to manually fill timesheets. The process can be lengthy and time consuming. You can make things easier by using a time tracking tool that will automatically collect all the required data.

You might have to spend a little money on getting the right time tracking software but it's worth the price since it allows businesses to save money in the long-run.

Your employees will be more productive, thus bringing you more money. Plus, they’ll be happier and less likely to quit.


Disadvantages of Time Tracking

Like any other tool, time tracking has some side effects as well. Let’s have a look:

  • Low Morale

Having to use a time tracking cool can make employees feel demoralized as they look at it as a micromanagement tool. They may feel that the company does not trust them, hence it uses a time tracking software to ensure they are being honest.

Plus, they may also feel that the company is using a time tracking device to keep an eye on them.

Hence, it is important that you clearly communicate the importance of time tracking to your employees and explain that it will not give you (managers) access to their personal information.

  • Cost

You might be able to find some free time tracking software but they are usually not very useful. Hence, get ready to pay for a professional tool. Most come with monthly or yearly licenses.

Study Reveals No Correlation Between Arrival Time and Workplace Stress

Some businesses use time tracking to keep an eye on arrival time. However, it isn’t important since there isn’t a link between arrival time and workplace stress. Arrival time throughout the country differs. Workers in Phoenix arrive at 7:34 AM and employees at San Diego arrive at 8:09, according to a report by Kisi. 

This, however, does not impact stress levels. San Diego ranked 12 on the happiness score, whereas, Phoenix ranked 20. Employees in Washington D.C. arrive the latest at 10:30 am, but Washington is among the happiest city yet the employees feel overworked, which can make them stressed.

Nonetheless, what employees do at work or in what conditions they work can have a huge impact on their well being.

Written by:

Ashley Davis
Associate Editor at Kisi