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Tracking Workers with Time and Labor Management

Updated: Sep 26, 2022

Time and labor management can be extremely complex. The idea of tracking the time employees work and the amount of labor they perform can be daunting. However, monitoring employees' time is an essential component of a company's overall HR strategy. When implemented correctly, time and labor management can help your company save money, increase employee productivity, and improve customer service. This blog post will explain what time and labor management is, the primary benefits it can provide your organization, and the considerations you should consider before implementing this system.

What is Time and Labor Management?

Time and labor management is the practice of tracking the time and labor involved in specific tasks, work activities, or job responsibilities. It is a method for managing human time and resources used for a particular or set of activities.

A time tracking method records the time employees spend performing a specific activity. A labor tracking method measures the time it takes employees to complete a specific activity, including their breaks, preparation time, and other non-productive activities.

Time and labor management are important to maximize employee productivity and improve customer service. In a highly competitive marketplace, every penny saved counts. Time and labor management can help you identify inefficiency and waste time and workforce, ultimately saving your company money.

Why Track Time and Labor?

Tracking time and labor provides insight into the time spent performing specific tasks and the effort expended. This information can be used to make informed decisions about the allocation of resources and the performance of employees.

For example, suppose you track time for a specific sales representative, and you notice that he or she is spending more time preparing for meetings than actually meeting with clients. In that case, it might be time to adjust your strategy. Preparing for meetings takes time and effort, and if you're not visiting with clients, you're probably losing sales.

The Benefits of Time and Labor Management

There are many benefits of time and labor management. Some of the most significant benefits include the following.

Increased Efficiency: Time and labor management allow you to identify areas of inefficiency and assign resources more efficiently. For example, you can identify which employees are spending the most time preparing for meetings and assign those individuals to front-office duties. This will free up your sales team to focus more on client service.

Decreased Costs: Time and labor management can help you identify areas where you're spending money that isn't necessary. For example, you might find that your employees take frequent breaks. During these breaks, the equipment is shut off, the area is unsecured, and risks increase. By understanding where your company is wasting money, you can spend your resources more efficiently and reduce your overall costs.

Increased Productivity: Time and labor management are all about making sure your employees use their time and energy productively. By closely tracking time, you can identify areas of inefficiency and increase productivity. For example, an administrative assistant who frequently takes 15-minute breaks throughout the day to check social media might be better served working from home. By closely monitoring this individual's time, you can identify and assign tasks more appropriately.

Improved Customer Service: Time and labor management are not just about saving money and improving efficiency; it's also about providing better service to your customers. If a customer complaint is related to slow delivery times or an unhappy delivery person, you can use time and labor management to determine who specific employees to hold accountable.

Tracking Time and Labor Software

The American Payroll Association has found that on average a business that tracks their workers' time by hand loses 2% of payroll each year. This translates into thousands of dollars each year. If you have not yet invested in a good time clock for your workforce, now is the time. The savings from investing in a time clock far outweigh the costs.

There are a number of a different time and labor tracking methods available. Depending on your organization's needs, one way might be more appropriate than another.

At Automatic Business Computing, we are experienced full-service payroll processing experts with over 40 years in the business, equipped with cutting-edge cloud-based technology for HR, timekeeping, payroll, and work schedule. Which translates into everything your business needs in one place.

Time clocks that store punches in the cloud allow you to see your workers' time in real-time from any place. Don't be tied down to a desk when you can manage your workers on the go!

When to Use Time and Labor Management

Time and labor management is best suited for companies with multiple locations or geographically dispersed workforces. These factors can make it difficult to track time and monitor labor intensity.

Time and labor management is most effective when integrated with other elements of your HR strategy. For example, it's beneficial to partner with a time and attendance or time tracking company to help you track time and manage your labor resources more effectively.

Final Words About Tracking Workers with Time and Labor Management

Time and labor management is an important aspect of an HR strategy. When implemented correctly, this technology can benefit your business in a variety of ways. It can help your company save money, increase employee productivity, and improve customer service.

The key is to choose the right system for your company and ensure it's being implemented correctly. If you have any questions about time and labor management, or if you'd like help choosing the best system for your needs, please don't hesitate to get in touch or schedule a free demo. Give us a call at (877) 297-5460.

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