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Time tracking is a staple in today’s business environment, especially with people having to work from home. It helps managers track how employees spend their time to support productivity and workflow optimization.
However, the actual added value of time tracking lies beyond mere tracking. It can unlock significant efficiency improvement in employee output, resource and marketing management, and overall business outcomes.
Let’s explore how time tracking can positively impact your business.
1. Unlocks Hidden Talent Potential
Time tracking doesn’t just show how time is spent; it reveals your workforce’s hidden strengths and weaknesses. You can find star employees who may be overperforming on peripheral responsibilities. For example, somebody on your marketing team could be a beast at doing quick funnel analysis or content strategy. Still, his or her so-called ‘designated role’ is that of a copywriter.
Experienced leaders know that such insights are vital for talent reshuffling, deploying people into a role that best fits their skill set and where they will excel. The result? More employee engagement, faster execution, and more adaptability with multi-capabilities.
2. Reduces Skill Drift in Teams
There is always a risk of “skill drift” – where employees gradually lose competence in core areas because those talents are, in reality, underutilized. When that happens, there will, over time, be lost performance and productivity. The best time tracking app combats this problem by giving data on how much time workers spend practicing and perfecting their key skills.
Continuous professional development isn’t just about the training you offer but about ensuring your employees apply what they learn. Time-tracking gives insights into whether or not your team is spending too much time on unrelated areas of their core skills.
For instance, time tracking allows the identification of a developer who spends 40% of his or her week on administrative tasks. Leadership can then reassign tasks and enable the developer to focus more on higher-value activities.
3. Boosts Long-Term Retention by Promoting Fair Workload Distribution
Very often, high performers are overburdened because managers over-rely on them. This can result in burnout and, eventually, turnover. Time tracking sheds light on workload disparities, ensuring no single person on the team is being overburdened.
For instance, a top performer reporting 50-hour weeks consistently may be overworked compared to others. Human resource executives recognize that rebalancing workloads optimizes productivity, helps to avert burnout, and increases retention and satisfaction in the workforce.
4. Enhances Efficiency in Crisis Management
Time tracking can be a lifesaver in a crisis, such as during an economic downfall, project derailment, or sudden staff shortage. The best time tracking app can show you where your company uses time and resources. You will be able to make immediate decisions and redistribute your resources instantly.
For instance, time tracking data could indicate that 70% of the resources are linked to an irrelevant project after an unexpected market shift. Your teams could use this data to quickly shift such resources into key priority areas, hence minimizing losses.
5. Prevents “Time Blindness” in Long-Term Projects
Many managers, particularly newer ones, develop “time blindness” by not properly tracking how much time is consumed on long projects. Over time, employees may start adding extra tasks or spread out deadlines. That way, projects slowly expand beyond their original scope. This can lead to project fatigue, which causes teams to become disengaged and inefficient.
The best time tracking app can help you visualize and predict when a project’s scope starts to creep. This can save money by preventing unnecessary budget overruns and refocusing teams to perform the most important tasks.
For example, on a project budgeted for $100,000, even a 10% increase in the time spent due can add $10,000 in unplanned costs. Keeping track helps avoid cost inflation and prevents losses.
6. Support Succession Planning and Role Development
Time tracking is highly beneficial in succession planning. It gives a real-world view of the complexity of each employee’s role. This data allows leaders to see who is overworked and underutilized, which can then be used to determine who might take on more responsibility.
This makes the internal process of locating future leaders easier. That way, it’s easier to plan promotions or succession when senior employees are close to retirement or are moving on. By knowing precisely where employees spend their time, a company that plans to promote from within can understand better where the true potential lies. This reduces the risk of promoting employees not fully prepared for leadership roles.
Conclusion
Time tracking is much more than a superficial glimpse into employee efficiency. It’s supposed to serve as a road map for smarter project management, knowledge transfer, resource allocation, and even employee well-being. Business enterprises can use such insights to enforce efficiency among employees and build a healthier and more productive workplace culture.
