employee time tracking app | 9 mins read

How an Employee Time Tracking App can Radically Shrink Labor Cost

how an employee time tracking app can radically shrink labor cost 1644996250 8149
Archita Wagle

By Archita Wagle

What is an Employee Time Tracking App?

A survey by Harvard Business Review has shown that the U.S. economy loses $7.4 billion a day in productivity when workers don't record their hours. Statistics also show that 60% of total business expenditure constitutes employee costs. It is therefore vital to track employee work hours.

Time tracking has been proven to help a business increase profitability and productivity. Employee time tracking can be defined as keeping a log of time spent by an employee to complete a certain task or project.

Tracking hours worked by an employee has now become easy with time tracking apps. A time tracking software is a tech solution used to keep track of employee hours and measure how much time an employee spends on a particular project.

A tracking app can also keep count of the average time taken to complete a particular task. A good time tracking software should also help with time entries to run payroll, invoicing, reporting, and data analysis.

Benefits of Time Tracking Software

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A good time clock software should help a business track time spent on different tasks without hindering the work flow. Here are the benefits of using an exceptional tracking software like Zip Clock by Hubworks-

1. Transparency- Using a time tracking app can help make your business workflow transparent. A time clock app will offer insights on how employees spend time doing their job, and keep count of the time spent on each job or project. It can also show which jobs are prioritized.
2. Accountability- A tracking software can help employees gain insights into the pattern of their work and optimize their productivity. It will also enable employees to be better focused, as their work time is being tracked, compelling them to optimize their billable hours.
3. Improves efficiency- A time tracking app helps you gauge the importance of a task, if it was worth the time spent and the changes achieved by completing it. Answering these questions will help you organize your workflow better. If you are able to track the hours spent on a project, you can bill your clients accordingly. More billable hours will make sure your business earns more profits.
4. Allocates resources- The time spent completing a task will help you keep track of the resources needed for it. You can also track who spends more time completing tasks assigned, or if there's a need to reallocate resources.
5. Budgeting- Tracking apps also helps make sure that tasks progress on time. Efficient project management will keep the budget in check.

Online employee scheduling software that makes shift planning effortless.
Try it free for 14 days.

Disadvantages of a Manual Employee Time Card

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Before businesses started using online time tracking solutions, they relied on manual time cards or time sheets. Manual time cards were originally called punch cards. Workers would slip a card into a time punch device and the time of clocking in or out would be printed on the paper.

Time cards help a business record start and end time for an employee. Its uses include tracking time spent by an employee during a shift or on a task. Time cards can also be used by remote workers or remote teams on distant job sites.

But there are several disadvantages of using a manual time card-

1. Buddy punch- The practice of an employee requesting someone else to clock in or out for them is known as a buddy punch. A business can discourage buddy punches by setting up biometric time cards where fingerprint scanning or facial recognition is used to track employee clock-ins.

2. Low morale- Having to stamp their time card daily may cause employees to feel they are under constant surveillance. This may lower staff morale.
3. Anxiety- As timesheets track time spent by employees on a task, it can create in them a sense of anxiety when a task or project goes past the deadline. This may lead to hesitancy over reporting real time spent on a project.
4. Intangible tasks- When team members attend long meetings with clients, how would this time tracking tool calculate time spent?

How Can a Time Tracking App Streamline Operations?

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Given the difficulties posed by time cards, businesses today have upgraded their time clock systems. They have opted for automated solutions like time tracking apps that allow an employee to sign in from their own device, be it a mobile phone or a computer.

Using a time tracking app will make sure a business runs efficiently and within budget. At its core, time tracking can be divided into a worker's time of entry, the approval by HR for entry time, and reports on time tracking data.

Using an employee time tracking software makes it easy for a large or small business to streamline daily operations, curb absenteeism and reduce labor costs.

A time tracking tool can be categorized into-

  • Time Tracker- The tracking tool or app's main focus is tracking employees' clock-in and -out times, days off, and time-off requests. It can also analyze data and generate reports.
  • Time card- A time card or time sheet is a tracking tool that can be integrated with a business's payroll system to receive accurate time data.
  • Project Management tools- A time tracker can be a part of a project management system, as completing projects on time strengthens a company's bottom-line.
Here's a basic outline of how a time tracking software can be used to streamline operations-

  • A time tracking app can be downloaded on a Windows Linux iOS Android device.
  • It can organize work into daily projects and tasks. A time tracking tool lets you prioritize tasks and set an estimated budget for each task.
  • It allows you to set and manage rates for clients, so that you can bill every client or project with a custom rate.
  • It helps you track work time for each task and also lets you add notes, attach files or expenses for a project.
  • It generate custom reports for each project or client and calculates profit for a project.
  • A time tracking app can be integrated with payroll or accounting software so that HR can manage pay.

How to Reduce Labor Cost With a Time Clock App

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Labor costs are the biggest expense a business has to bear. Therefore, reducing the cost of labor is the most effective step it can take to increase profits. Faulty time tracking can lead to high labor costs, which is why it's important for a business to look for solutions that can track and optimize employee time accurately.

This is how a business can reduce its labor costs with an employee time clock app like Zip Clock-

Time clocks reduce time theft-
A time clock app or time clock software can eliminate time theft like buddy punches or extended breaks by combining cloud based solutions with biometric features. By automating employee clock-ins and -outs and time recorded for specific jobs, a business can reduce the cost of labour, for there's now greater accuracy, better cost allocation and sharper employee scheduling.

Time clocks avoid manual tracking-
According to the American Payroll Association, manual time tracking processes make it possible for employees to misreport entry time or time taken on tasks. This can cost organizations up to 8% of their payroll. A time tracking tool includes features like GPS tracking that can accurately keep track of an employee's hours and location. This eliminates the possibility of falsely reporting additional hours or incorrect time entries.

Time clocks ensure compliance with law-
Time tracking is a way to ensure that a company is compliant with local and federal laws like the the Fair Labor Standards Act and the Wage and Hour Division. Non-compliance extracts hefty fines that add to labor costs. A good time tracking software should have an inbuilt tool that ensures compliance with local and federal laws. It should also generate updates on changes in these laws.

Time clocks reduce payroll errors-
A time tracking app should be able to track relevant rules and legislations, industry practices regarding work hours and corresponding pay scales. It should also issue alerts in case of discrepancies to reduce payroll errors.

Online employee scheduling software that makes shift planning effortless.
Try it free for 14 days.

5 Features to Look for in Time Clock Software

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Here are key features to consider when choosing time tracking software-

  • Hourly tracking- A time clock app enables a business to analyze employee and team performance by the hour. The tool records the number of hours spent on a project and discards idle time automatically. This helps monitor employee hours and productivity better.


  • Compliance with law- A time tracking tool can help with employee scheduling by listing an employee's assigned weekly hours and projected overtime. It can then prevent an employee from exceeding these hours by generating automated reminders for breaks and clock-outs. This avoids overtime pay and prevents labor law violations.


  • Review and approve time entries- A time tracking app should allow employees to edit previous punches within the current payroll period and help management identify time punch violations. It should also maintain an audit trail of all employee punches and edits.


  • Reports and analytics- Time tracking software can help a business grow by generating reports on individual and team contribution and performance.

5 Top Time Clock Restaurant Apps

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Here are five of the best time clock apps that are sure to whip your business into shape-

1. Zip Clock- This timekeeping app allows employees to record their own work time and sends operators relevant notifications to make sure employees are compliant with labor laws. Zip Clock also sends employees reminders to take breaks and clock out on time. The app is available on the restaurant software solutions platform, Hubworks.

2. Connecteam- This app addresses four problems most businesses face- operation oversight, payroll execution, time-off management and invoicing. It allows business to scale up their operations easily without making them pay more every time, as it is not user based.

3. When I work- This time tracking app is ideal for small businesses with fewer than 20 employees. It is highly affordable with an attractive user interface. A great feature of this app is that it sends notifications to employees an hour before their shift begins, to help them get to work on time.

4. Harvest- The time tracking software can generate visual reports that show how much time is spent on each project. Employees can use the app to track their time or input it manually. It is also possible to use the app as a personal time tracker.

5. Timesheets- This time clock app can be used by salaried and hourly employees to keep count of their billable hours. Its mobile app can also track employee time, mileage and expenses on the road.

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