Production equals success for business, so it’s no surprise that many businesses list increased productivity as one of their primary goals. One strategy to achieve this is by using time tracking. Not only can time tracking provide managers with a better perception of who’s doing what and when it’s completed, but it can also help employees with organization.
With a variety of time tracking software available for businesses to choose from, the question many ask is whether implementing time tracking is worth it. The benefits below should help businesses evaluate whether time tracking can increase productivity.
The Self-Illuminating Effect of Time Tracking
Even the most productive employees may be surprised at how much unnecessary time they spend on tasks that are somewhat irrelevant. Time tracking can provide anyone with insight as to what they are spending too much or too little time on, especially if they can correlate it with their strengths and weaknesses. This can provide illuminating insight that can potentially result in an increase in productivity.
Accurate Client Billing
Time tracking results in more transparency between businesses and clients because they can provide thorough reports for clients in regard to what they’re paying for. As an example, a client working with a marketing agency can evaluate potential budget changes by looking at how much time was devoted to campaign planning and copywriting. Likewise, a business can provide a more accurate rate with time tracking as opposed to simply estimating how many hours were worked on.
Reverse Engineering of Mistakes
Every business makes a mistake at some point. Whether it’s a campaign gone wrong or a miscommunication, time tracking can help detect precisely where the issue occurred. For example, if a marketing campaign uses subpar copywriting, a manager can go back and look at the time sheet to determine whether the poor work is due to not enough time spent on it, a misassigned employee or something else. This helps remedy past mistakes so they do not occur again in the future. Clients will also be more satisfied because a business following up on a mistake as opposed to denying it sports a better look.
Case Study
Several case studies show that businesses experience a significant jump in productivity after implementing time tracking software. In one case, marketing company Fisher Vista, LLC. reaped the benefits from time tracking and billing software, noting improved time management, reduced revenue leakage and a billable workforce as benefits. Adriana Saldana, company vice president, noted she was very impressed with the results.
“[They] gave me an 85% increase in productivity with valuable time back… time that could be spent on billable projects,” she said. “It also gave me immediate peace of mind, knowing that my billing data was accurate, our staff was being truly productive and that I could now focus on our business.”
Once Implemented, Wait for a Substantive Sample Size
It’s important for business leaders not to overreact to small samples. The nature of business means that employees will have varied weeks in terms of workload. Typically, four to six weeks of data should be collected before making a judgment because it provides a large enough sample size to consider changes. Also, some employees may need time to adjust to the new software. With a large enough sample size, businesses will begin to recognize hidden labor costs that bite into business profits and productivity.
Time tracking results in more accurate billing, improved productivity and an easier way to find out causes and potential resolutions for errors in judgment or under performance. It’s something that any business seeking improved productivity and client transparency should strongly consider.
