There is no denying that tracking the hours of employees in an organisation is imperative for effective workforce management. You can monitor and record the precise time employees spent on specific tasks and thus optimizes their productivity and performance. This can also help streamline payroll processes and ensure fair compensation.

With the accurate practice of tracking employee hours, organizations can also evaluate individual teams’ capabilities which can help identify bottlenecks and make the right decision for the overall growth of the company.

New-age technology has revolutionized the way employee hours have been tracked using digital tools. These offer super convenience, accuracy, and real-time insights. From advanced time-tracking software tools to traditional timecards, businesses have multiple options to choose from and improve the productivity of their employees.

Here is a complete guide on using the best ways or tools to track employee hours and manage their time effectively:

Key reasons why Employee Hours Tracking is Important!

You should know the key importance of tracking employee hours which in turn empowers you to carry out steps to boost the productivity of employees. This also manages the performance, estimated budget, and optimization of projects or tasks.

1. Fair and Accurate Payroll

Tracking employee hours ensures that employees are compensated fairly for the time they have worked. By accurately recording their hours, businesses can calculate wages, overtime, and any additional compensation accurately. This promotes transparency and helps prevent disputes or discrepancies in payroll.

2. Resource Allocation

By tracking employee hours, organizations can gain insights into how their workforce is utilizing their time. This information enables businesses to identify inefficiencies, allocate resources effectively, and optimize productivity. It helps in identifying areas where additional support or training may be required.

3. Compliance with Labor Laws

 Tracking employee hours is crucial for compliance with labor laws and regulations. Many jurisdictions have specific requirements for minimum wage, maximum working hours, and overtime pay. Accurate tracking ensures that businesses adhere to these legal obligations and avoid potential penalties or legal issues.

4. Project and Task Management

 Tracking employee hours allows businesses to monitor the progress of projects and tasks. It helps in assessing project timelines, identifying potential delays, and making informed decisions regarding resource allocation or adjustments in project plans. It also enables managers to evaluate individual and team performance.

5. Data Analysis and Decision-Making

 Employee hour tracking provides valuable data that can be analyzed to gain insights into employee productivity, efficiency, and performance trends. This data can be used to identify patterns, implement process improvements, and make informed decisions to enhance overall operational effectiveness. It also helps in forecasting labor needs, setting realistic goals, and managing workload distribution.

Best Ways to Keep Track of Employee Hours

Here is the list of the five best methods to track or record the hours of your employees and team within an organization:

1. Manual Time Tracking

This is one of the traditional ways to track the productive hours of your team. Maintain a register where employees can record their in and out times. It is a great option if you have a small or startup business where you can’t spend too much on time-tracking tools.

Unfortunately, this type of method has a lot of room for errors and miscalculations which can affect the payroll calculation.

2. Manual timesheets

Manual timesheets are also a traditional way to track the productive hours of employees. This can help you manually record the start and end times for each task. The best part is that manual timesheets are super easy and affordable methods, but the chances of errors are more as compared to new-age tools.

Additionally, manual timesheets require administrative effort to collect, review, and process. Despite their limitations, they can still be a viable option for smaller businesses or those without access to advanced digital time-tracking systems.

3. Time-Tracking Software

Time-tracking software is the most advanced and new-age way to check the hours of employees. You can use different and fully-featured digital tools that offer convenience, real-time insights, and accuracy.

They automate the process of tracking time, allowing employees to log their hours easily while providing employers with a centralized platform to monitor, analyze, and streamline workforce management. Time tracking software significantly reduces administrative efforts and ensures efficient and accurate tracking of employee hours.

4. Time Clocks

Time clocks are physical devices used to track employee hours. They typically involve employees punching in and out using a physical card or a biometric system.

Time clocks provide a simple and reliable method of recording attendance and calculating work hours, making them a popular choice for many businesses.

5. GPS Clock In

GPS clock-in is a modern approach to tracking employee hours that utilizes location-based technology. With GPS-enabled devices, employees can clock in and out from different work locations using their smartphones or other GPS-enabled devices.

This method ensures accurate time tracking, as it verifies the employee’s location during clock-in and prevents time fraud. GPS clock-in provides real-time data and allows businesses to efficiently manage remote or mobile workforces, enhancing accountability and improving overall workforce management.


Tracking employee hours is essential for effective workforce management. Whether through manual timesheets, time tracking software, time clocks, or GPS clock-in, businesses have various options to choose from based on their needs and resources.

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