How To Track Employee Hours (2024)

Now that you know how important it is for your business to track employees, let’s discuss the five most common ways to do so, from manual time tracking, manual timesheets, time tracking software, traditional time clocks and GPS clock-ins.

Here are the five key ways to track employee hours:

1. Manual Time Tracking

The easiest way to start if you’re not doing any sort of time tracking is to start manually. Keep a register where employees record their in and out times.

Although manual time tracking is a good way to start if you have a very small team, doing manual timesheet calculations can prove both time-consuming and lengthy. Errors may also be introduced while doing manual calculations, which can result in erroneous payroll calculation.

2. Manual Timesheets

Manual timesheets are just a notch above manual time tracking. Instead of making the entries using pen and paper, you record time in and out on spreadsheets such as Microsoft Excel and Google Sheets.

Due to mathematical formulas provided by these software, calculating total time worked is quicker and easier; the error that might be introduced in manual calculation is also eliminated.

Manual timesheets are best for businesses having a limited number of employees so that the time investment is not significant.

3. Time Tracking Software

Time tracking software can automate employee hour tracking for all employees—salaried, hourly or contractual. Employees can use time tracking software across devices such as desktops and mobiles as well as within work apps, making it easier to track time.

The use of time tracking software also enables you to track both billable and non-billable hours, improving workforce productivity and project expenditure. If you schedule your employees into shifts or assign them tasks, the time tracking software can also prompt them to clock their in or out time if they forget.

There are many time tracking software available on the market. Which one you use depends upon your specific requirements. Forbes Advisor evaluated multiple time tracking software on numerous parameters to arrive at the best time tracking software for your business.

4. Time Clocks

If all your employees are concentrated in one or two locations, you can choose to install a time clock where employees log their in and out times. This is especially suitable for manufacturing units where time tracking apps cannot be used because employees do not regularly access their desktops or smartphones.

Setting up a time clock station or kiosk can be an added cost but it is one time and helps you streamline the employee hour tracking process. The output can be automatically integrated to the payroll or HR system.

5. GPS Clock-In

If your employees travel frequently, a desktop or mobile employee tracking app may not suffice. You can use geo-fencing or GPS tracking apps to accurately log where your employees are working. This can then be seamlessly integrated into payroll not just for wage calculation but also for other compensations linked to their performance.

Bottom Line

Whatever tool you use, it is important to track employee hours because it gives you the necessary data required to make decisions that impact business growth. Tracking employee hours ensures better employee performance, legal compliance, accurate payroll processing and work culture transparency.