While it may sound cliché, the fact is that the saying “time is money” is true, particularly in the construction industry. Proper time tracking is essential to ensure that employees are paid fairly, and projects stay on budget. Yet, even with the important role time management and proper time tracking play, most construction companies still use paper timesheets to track billable hours. Not only is this a time-consuming process that can reduce productivity, but it can also lead to potentially costly timekeeping errors. Rather than potentially losing revenue because your company is still using outdated timekeeping methods, you may want to consider investing in time tracking software, and here’s why.
One of the biggest advantages of time tracking software is that it can help to simplify and improve the payroll process. Companies that still use traditional timekeeping methods, such as paper timesheets, must enter data into a computer manually. This wastes time (and money) by diverting resources that could be better spent on other tasks. Traditional timekeeping methods can also prove detrimental by leaving you vulnerable to human error, as office staff may accidentally input a number wrong or misread an employee’s handwriting.
Time tracking software can then be an invaluable resource for construction companies by streamlining the payroll process and removing the potential costs that human error can cause. Since employees punch in or record their hours on their own devices, not only are unnecessary steps in the payroll process removed, but employees can ensure for themselves that the information entered is accurate.
Reduce Time Theft
Time tracking software for construction not only simplifies the payroll process, but it also helps ensure that timecards are accurate. The fact is that we all make mistakes, and just like payroll might misinterpret a timecard, employees may accidentally fill out their timecards incorrectly. However, whether it’s intentional or not, time theft (where employees claim pay for time they were not working) is a growing problem, as studies suggest it is something over 40% of employees do. Even if employees are only off on their timecard by a matter of minutes, this can add up to a company paying thousands of dollars over the course of a year for work time that did not happen. Fortunately, time tracking software can provide a simple solution to this problem.
When you use time tracking software, not only does the system help ensure that only time worked is entered into the system by verifying the time and location when employees clock in/out, but you also can use features aimed at helping you combat common time-theft practices. For instance, you may choose to set up break notifications prompting workers to return to work. This helps to save you money by ensuring payroll is as accurate as possible.
Keep Track of Every Worker
Time tracking software also helps to improve efficiency and reduce time theft by keeping track of where employees are at all times. The fact is that keeping track of where employees are has typically been difficult in the construction industry, as workers may have flex schedules, or they may be required to migrate from one site to the next throughout the day. Yet, this can lead to potential time theft if a worker tries to clock in when they aren’t actually at the job site, or if they claim that they were traveling longer than they actually were.
A GPS tracking system built into your timekeeping software can help alleviate this issue by providing information about every worker’s physical location and status in real-time. This can help keep employees accountable, as they will know that they need to accurately record break times and not take detours on route between locations since they are being tracked throughout the day. You can even set a geofence radius that employees must be within to clock in and out so that they don’t try to steal company time. GPS tracking can then keep your workers honest while providing you with valuable location data that could help you determine ways to improve job site efficiency.
Manage Overtime Costs
Another benefit of time tracking software is that it can help construction companies to better keep track of and manage overtime. While projects often require overtime to ensure deadlines are met, not all overtime is necessary, and overtime can quickly cause project costs to skyrocket if not managed correctly. Fortunately, time tracking software can help companies better manage overtime by allowing them to see data about how much overtime is being put in, and by allowing them to set reminders to help ensure overtime hours do not go above a certain threshold. Time tracking software can also help prevent unnecessary overtime hours from being billed by ensuring workers only complete hours that are approved and within budget. You can even set alerts to warn you when specific employees are close to going into overtime, allowing you to make real-time decisions about scheduling, which can help keep your project within budget.
Time tracking software can also be essential in helping you to provide potential customers with more accurate bids. With detailed information easily accessible to you regarding how long it takes to complete tasks and how long similar projects have taken, you can create competitive bids that customers can rely on to be as accurate as possible. This significantly reduces the likelihood that you lose a potential customer because you overestimate the cost/duration of a project, or that you will irritate a customer because you underestimated a project’s timeline. You will have all the necessary information at your fingertips to ensure your estimates are as accurate as possible.
Accurate time tracking is essential to ensure that your construction company maximizes productivity and minimizes unnecessary costs.
If you are still maintaining physical timesheets or manually tracking timecard data, try Time Tracker free for 14 days and see how easy online time tracking can increase productivity and profitability in your construction projects.