Your field employees are out there when you aren’t. So how do you track employee hours ? It’s not just a matter of trust. Field employees can easily lose track of hours, client site locations, and driving time. Those lost hours become your expenses. Deliberate time theft can also become a problem if you don’t have a good tracking system in place.
From paper sheets to GPS-powered apps, there are many ways to track field employees. Today, we’re going to dig into the most popular and the most common.
Why tracking employees hours worked is important to your business
Tracking employee hours is important for a variety of reasons:
1. Payroll: Accurate tracking of employee hours is crucial for calculating payroll and ensuring that employees are paid correctly and on time.
2. Labor laws: Many countries have laws that regulate how employees must be paid, including minimum wage laws and overtime pay laws. Tracking employee hours can help businesses ensure that they are in compliance with these laws.
3. Productivity: Tracking employee hours can help businesses identify patterns and trends in employee productivity and efficiency, and identify areas where improvements can be made.
4. Scheduling: Accurate tracking of employee hours can help businesses create more efficient and effective schedules, reducing the risk of over or understaffing and improving employee satisfaction.
5. Budgeting: Tracking employee hours can help businesses better understand their labor costs and make more informed budgeting and forecasting decisions.
6. Billing: For businesses that bill clients based on employee hours worked, accurate tracking of employee hours is crucial for ensuring that clients are billed accurately and fairly.
Using time data to calculate payroll and pay employees accurately
Employee time tracking data helps you calculate payroll and pay employees accurately. Regardless of the tool use to gather the data, the typical process is as follows:
1. Gather all necessary data: This will include the total number of hours worked by each employee, as well as any additional pay they are entitled to, such as overtime pay or bonuses.
2. Calculate pay based on hours worked: Use the hourly pay rate for each employee to calculate their gross pay for the pay period. If an employee is entitled to overtime pay, be sure to calculate this separately using the appropriate overtime rate.
3. Deduct any necessary deductions: Subtract any deductions that need to be taken from an employee’s pay, such as taxes, healthcare premiums, and retirement contributions.
4. Calculate net pay: Subtract all deductions from the employee’s gross pay to determine their net pay for the pay period.
5. Issue payment: Use the calculated net pay to issue payment to each employee, either through direct deposit or by issuing a physical check.
It’s important to ensure that all employee time tracking data is accurate and up-to-date in order to calculate payroll and pay employees accurately. This may involve reviewing and verifying employee time records, as well as reconciling any discrepancies or errors.
Labor laws relating to tracking employee hours
In the United States, the main labor law that regulates the tracking of employee hours is the Fair Labor Standards Act (FLSA). The FLSA sets standards for minimum wage, overtime pay, and child labor, and applies to most employees in the US. Some specific provisions of the FLSA related to tracking employee hours include:
1. Minimum wage: The FLSA requires that employers pay employees at least the federal minimum wage of $7.25 per hour (as of 2021). Some states and localities may have higher minimum wage rates that apply to employees in those jurisdictions.
2. Overtime pay: The FLSA requires that employers pay employees time and a half for all hours worked beyond 40 hours per week for non-exempt workers. Some employees may be exempt from overtime pay requirements due to their job duties or job classification.
3. Recordkeeping requirements: The FLSA requires employers to keep accurate records of employee hours worked and pay earned. These records must be kept for a certain period of time, typically at least three years.
4. Breaks and rest periods: The FLSA does not require employers to provide breaks or rest periods to employees, but if they do, any such breaks that last 20 minutes or less must be paid.
In addition to the FLSA, there may be other state and local laws that regulate the tracking of employee hours in the US. It’s important for businesses to familiarize themselves with the labor laws that apply to their industry and location in order to ensure compliance.
Managing time off and vacation days effectively
To manage time off and vacation days effectively, you can follow these steps:
1. Set clear policies: Establish clear policies around time off and vacation days, including the process for requesting time off, how much time off employees are entitled to, and any restrictions or limits on the use of time off.
2. Track and approve time off requests: Set up a system for employees to request time off, whether it’s through a paper or electronic form, and establish a process for reviewing and approving or denying these requests.
3. Manage employee schedules: Use an employee job scheduling app to manage employee schedules and ensure that there is sufficient coverage when employees are absent. This may involve adjusting schedules, finding temporary replacements, or redistributing tasks.
4. Handle unexpected absences: Have a plan in place for handling unexpected absences, such as calling in a replacement or redistributing tasks to other employees.
5. Communicate with employees: Keep employees informed about their time off and vacation days, including any changes or updates to policies or schedules.
By following these steps, you can effectively manage time off and vacation days and ensure that your business is able to operate smoothly even when employees are absent.
Tools for tracking employees hours
Employers tracking field employees have a variety of options: GPS time clock applications, paper timesheets, on-site punchcards, and digital timesheets. Of these, GPS time clock apps are the most convenient, accurate, and timely.
Employee Time Tracking Apps
An employee time tracking app is a mobile app that allows employees to track their hours. Some may also include built-in GPS tracking. Some key benefits of using a employee time tracking app for a business include accurate tracking of employee hours, simplified time tracking, improved efficiency, and increased productivity.
For employees in the field, accurate tracking of employee hours is achieved through the use of GPS data to verify an employee’s location when they clock in and out. The use of a time tracker app simplifies the time tracking process by eliminating the need for physical time clocks or manual time sheets. This can improve efficiency by saving time and reducing the risk of errors or discrepancies in employee time records.
Employee time tracking apps can also help businesses identify patterns and trends in employee productivity and efficiency, and identify areas for improvement.
Some key benefits of using a time tracking app for employees include convenience, accurate pay, improved communication, and increased flexibility. With an employee time tracking app, employees can easily track their hours from anywhere, eliminating the need to be physically present at a time clock or office. This can increase convenience and flexibility. GPS time clock apps can also help ensure that employees are paid accurately and on time by providing accurate and up-to-date time and location tracking data. In addition, GPS time clock apps may include features such as messaging or chat functions, which can help improve communication between employees and management.
Paper Time Sheets
Some companies are still using paper tracking for field employees. A paper process for tracking employee hours involves using physical time sheets or other paper documents to record the number of hours worked by each employee. To use a paper process to track employee hours, an employee would typically fill out a time sheet at the beginning and end of each shift, recording the start and end time of their shift, as well as any breaks or other time off. The time sheet would then be reviewed and approved by a supervisor or HR representative, and the hours recorded on the time sheet would be used to calculate payroll and pay employees.
One key benefit of using a paper process to track employee hours is that it can be simple and easy to implement, especially for small businesses with limited resources. A paper process may also be more familiar to employees who are used to tracking their hours in this way.
However, there are also some potential drawbacks to using a paper process to track employee hours. One potential issue is that it can be prone to errors or inaccuracies, as manual data entry can be time-consuming and prone to mistakes. A paper process may also be less efficient than other time tracking methods, as it requires manual review and approval of time sheets, and may not be able to provide real-time tracking of employee hours. In addition, a paper process may be more susceptible to tampering or fraud, as it is not always easy to verify the accuracy of the hours recorded on a time sheet.
Physical Time Clocks
Physical time clocks are devices that are used to track employee hours by recording the time that employees clock in and out. To use physical time clocks to track employee hours, employees typically use a time card or other form of identification to clock in and out at the beginning and end of each shift. The time clock then records the time and date of the transaction, and this information is used to calculate payroll and pay employees.
One key benefit of using physical time clocks to track employee hours is that they provide a reliable and accurate way to track employee attendance. Time clocks can help prevent errors or discrepancies in employee time records, as they provide a clear record of when employees start and end their shifts. Physical time clocks may also be more efficient than other time tracking methods, as they can automatically record employee hours in real-time, without the need for manual data entry or review.
However, there are also some potential drawbacks to using physical time clocks to track employee hours. One potential issue is that they may require a significant investment in hardware and infrastructure, as they require a physical device to be installed and maintained. Physical time clocks may also be less flexible than other time tracking methods, as they require employees to be physically present at the time clock to clock in and out. Additionally, physical time clocks may not be as convenient as other time tracking methods, as they may not be accessible from multiple locations or devices.
Digital Spreadsheets
You can use a construction labor tracking spreadsheet to track employee hours, but the same issues apply to digital timesheets that apply to paper tracking.
To use a spreadsheet for this purpose, create a document with columns for employee name, date, start time, end time, and total hours worked. You may also want to include columns for breaks, overtime, and pay rate. Have each employee input their own hours or have a designated person do it for them. Use formulas to automatically calculate total hours, overtime, and breaks taken. Regularly review the spreadsheet to ensure accuracy.
The benefits of using a spreadsheet include increased accuracy, efficiency, and visibility. However, it may be time-consuming for employees to manually input their hours and there is a risk of errors if the information is not entered accurately. It is also important to regularly review and update the spreadsheet to ensure it accurately reflects employee hours.
Choosing the right time tracking system for your business
There are several factors to consider when choosing the right time tracking system for your business:
1. Consider The Total Cost: Consider your budget and what you are willing to spend on a time tracking system and the benefits involved. Some systems may have upfront costs, while others charge a monthly fee based on the number of users or features you need. Remember you typically get what you pay for, using spreadsheets might seem free but not if its costing you thousands per month in inflated payroll costs.
2. Ease of use: Look for a time tracking system that is easy for employees to use and understand. This is critical to ensure you get buy-in and adoption from your team.
3. Features: Determine which features are most important to your business. Some systems may offer advanced features such as GPS tracking, project tracking, payroll integration, or scheduling tools, while others may be more basic. For example, if you employees are in the field, accurate GPS tracking is probably going to be important.
4. Integrations: Make sure the time tracking system you choose is compatible with your existing systems and processes. This could include things like payroll software, scheduling software, or other HR systems.
5. Scalability: Consider whether the time tracking system can grow with your business. If you plan on hiring more employees in the future, you’ll want a system that can accommodate an increase in users.
6. Customer support: Look for a time tracking system that offers good customer support, such as online resources, phone support, or email assistance. This can be particularly important if you encounter any issues or have questions while setting up or using the system.
Let’s weigh up the strengths and weaknesses of the tools that we mentioned earlier:
| Tool | Strengths | Weaknesses |
| Employee time tracking apps |  Most accurate solution, especially for mobile workers. Avoid data entry Streamlined payroll processing Saves you time and money Job cost insights |
 Requires employees to install app on their phone |
| Paper timesheets | Easy to adopt for employees Initially cheap to implement |
Not accurate Prone to time card fraud Easily lost Painful data entry Can be very costly for mobile workforces |
| Physical time clocks | Easy to adopt for employees Phone not required |
Implementation expensive Managing hardware is a pain Expensive Syncing data to payroll Limited to a work site. Only applies to certain use cases. |
| Digital spreadsheets | Cheap and easy Requires an administrator to manage entry Flexible |
Not accurate Prone to time card fraud Easily lost Painful data entry Can be very costly for mobile workforces |
Why GPS time clock apps are essential for tracking field employee hours
GPS time clock appstracking is the best solution for tracking field employees. Through geofencing, employers can automate their mileage tracking and billing, recapture client reimbursements, and easily import tracked information into their accounting and payroll solutions.
Track and Bill Mileage With GPS
For field employees, you need more than just clock-in and clock-out times. You also need to track and bill out your mileage. When do employees start traveling to the site? How much mileage do they rack up between sites?
Phone-based GPS tracking solutions track more than just employee hours. With Workyard, all mileage can be tracked from the start of the workday to the end and automatically allocated to specific jobs.
Improve Client Reimbursables With Geofencing
It’s not enough to just know your hours and your mileage; you must know where to bill them. Geofencing technology applies hours and mileage directly to the client, to streamline and improve the accuracy of your client reimbursements.
Labor, mileage, projects, and tasks can be attributed directly to the client. Print out easy-to-read reports and ensure that your billing is accurate and timely.
Integrate and Import for Faster Accounting
Once you’ve tracked your employees’ hours, import them into software solutions such as QuickBooks Payroll or ADP.
By importing your data directly into your payroll solution, you can run advanced labor reports. Analyze your previous labor expenses and forecast expenses in the future. Workyard can even automatically sync jobs and services to QuickBooks—for easier and more accurate reporting.
Setting up and training employees on a new time tracking system
To set up and train employees on a new time tracking system, you can follow these steps:
1. Communicate the new system to employees: Make sure to clearly communicate the purpose and benefits of the new time tracking system to employees, as well as any changes to policies or procedures that will result from the implementation of the new system.
2. Provide training and support: Offer training to employees on how to use the new system, including any necessary instructions or tutorials. Provide ongoing support and assistance to employees as needed, such as through online resources, phone support, or in-person training.
3. Set clear expectations: Establish clear expectations for employees around using the new time tracking system, including policies on clocking in and out, rounding, and handling discrepancies.
4. Address questions or issues: Encourage employees to ask questions or raise any issues they may have with the new system. Make sure to address these questions and issues promptly and provide support as needed.
By following these steps, you can set up and train employees on a new time tracking system in a way that is clear and effective. This can help ensure that the new system is used consistently and accurately by all employees.
The post Tracking Employees Hours: Best Practices & Tools in 2023 appeared first on Workyard Blog.
