Time Tracking

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One of the many responsibilities of employers is to ensure that employees are paid what they are due. Paying employees their correct wages each pay period does not only prevent payroll adjustments and additional work, it can also keep employees satisfied and happy. And everybody knows that happy employees can translate to a happy work environment. To be able to pay employees correctly, employers need a way to find out how many hours employees work. This is where time tracking comes in. 

What is “time tracking”? 

Time tracking is a way of recording and monitoring how many hours employees work in an organization. Under the umbrella of time and attendance, time tracking is essential for companies to give accurate wages to employees. 

The three components of time tracking are time entry, approvals, and reporting. Obtaining these records was organically done manually. Meaning, employees clock in their time in and time out, including the period where they go on break. Physical documents such as timesheets and timecards are used to log on the times, often referred to as timestamps. Doing this manually can result in inaccuracies and errors which lead to inaccurate payroll processing. Nowadays, many organizations opt to do time tracking electronically via software-based systems.

Approval refers to the part where a manager reviews an employee’s submitted timesheet. Finally, reporting is the last component where all approved timesheets are reported and submitted for payroll processing. 

Aside from payroll processing, time tracking is also beneficial in helping companies study their workforce, their performance, budget, and compensation.

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