Key Points:
- Time tracking seems like a straightforward process, but it can still bring up a lot of questions.
- Time tracking is an important process to follow in order to stay compliant with labor regulations and collective bargaining agreements.
- Automated time tracking software is the best option for most organizations because of how simple and easy it is for your employees.
Time tracking refers to the process organizations use to record the working hours of employees, as well as ensure those employees are compensated accurately. Time tracking used to be, and sometimes still is, recorded by hand. Most organizations now utilize automated time tracking software. Although it sounds like a straightforward process, time tracking can bring up a lot of questions, like “Should breaks be tracked,” or “How many breaks should employees have?”. In this post, we go over the benefits of time tracking as well as 5 of the best practices that employers can follow.
Time Tracking Best Practices
1. Educate your employees about your time tracking tool and guidelines
For effective time tracking, it is important that your employees understand not only the software you use, but why. Explain to them how time tracking works, how your specific time tracking system works, how they can use it correctly, and why it’s beneficial. Follow these steps when educating your employees on time tracking practices:
- Walk them through the time tracking tool
- Explain the duration of their breaks, as well as what personal business is allowed on the job
- Show them how to fix an error
- Answer any questions they may have on the software or time tracking in general
2. Use an automated system
Most online time tracking systems are automated, cutting out the possibility for missed information. Using an automated system will ensure that all employee hours are accounted for. It allows for a quick and simple process your employees can follow.
3. Align data across departments
Though many employees have different schedules and wages, it is important to align their time entries and have everyone on the same software. This makes it easy for employees to enter their data, and for employers to manage everyone’s time entries by keeping it organized. This also helps to ensure that no data is lost or missing.
4. Safeguard your data
Automated time tracking software is useful and benefits your organization in a few different ways. But there’s always the fear of clicking the wrong button and losing all of your data. This is why it is important to always take measures in avoiding this scenario. The following are steps to take to ensure that all of your data is secure:
- Backup all your business and time entry data
- Duplicate employee timesheets and work reports to storage software
- Lock your documents
5. Don’t Over Track
Spending too much time on the time tracking software as well as tracking every minute throughout a workday can be inefficient. Getting too involved and invested in the time tracking of your employees can make them feel like they’ve lost your trust. It is important to not get too precise in tracking time throughout the day, and not spend too much time analyzing the data at the end of a pay period.
Why is Time Tracking Important?
Stay compliant with current labor regulations
Labor laws are protections and safeguards that help ensure employees are safe and protected at work. Many labor regulations are by the Department of Labor and covered in the Fair Labor Standards Act (FSLA), an act that establishes minimum wage, overtime pay, record keeping, and youth employment standards in Federal, State, and Local Governments. Failure to follow labor laws will result in financial penalties, or lawsuits. It is important that all organizations stay up to date on labor laws and the legal landscape of hourly wage, time tracking, and healthy working conditions.
Understand and stay compliant with Collective Bargaining Agreements
A collective bargaining agreement (CBA) is a legal contract between an employer and a union representing the employees of a specific establishment. A CBA is typically the result of extensive negotiation between employers and a union regarding topics such as wages, hours, and terms of employment. Once these parties reach an agreement, both the employer and the union are required to abide by the terms agreed upon. When a CBA expires, both parties are generally required to continue negotiating until a new one is reached. During that time, old terms will be in effect until new terms are agreed upon and put into action.
SentricHR Time Tracking Software
SentricHR time tracking software offers you a simple, streamlined approach to automated time tracking. With our software, you can:
- Edit and approve timecards individually or in batches
- Check missed punches, absences, tardies, and early departures
- Manage overtime, holiday hours, rounding rules, and more to help you stay compliant
- Set up automated approvals and notifications
- Compare scheduled vs. actual hours side by side
- Pay approved hours seamlessly
- Encourage employees to punch, forecast leave, and request time off from any device
- And much more!
Check out SentricHR to learn more about our time tracking along with our other software solutions!
