1. Time tracking is good for productivity.
Not everyone needs a timer to help them stay focused on the job at hand, but some people thrive on structured time tracking. This potential for increased productivity is one great reason salaried workers should clock in. As software development firm Atomic Object reveals, tracking time is an essential part of staying focused and managing priorities. “Tracking time at the team level is important to make sure projects stay on track with a predictable level of effort,” says Shawn Crowley, a writer for the company’s “Great Not Big” blog. “[Employees] track and review their individual time to help balance their billable time with other activities like blogging, community events, or hiring.”
2. Job costing applies to all employees.
When most employers think about job costing, hourly employees are top of mind. An employee earns $20 an hour and spends two hours at Job Site A, using $100 in materials to perform X service. But how much is the employer spending on that job, including employee time, gas, and materials, as opposed to how much the customer is getting billed for that service?
Job costing isn’t just applicable to hourly employees. Knowing how much a job should be billed, even when the employee working on it is salaried is equally relevant. “Job costing compares your revenues to expenses,” says Jake Albers, a TSheets customer success team leader. “It gives you a breakdown of how much [the employee is] earning and how many hours they’re spending on a job or project, and then it generates an estimated cost.”
3. Time tracking keeps everyone honest.
If you knew someone was looking at your time card, would you be more or less likely to report your hours honestly? For most people, time tracking is simply that: a tool for keeping everyone honest.
More than half of the employers we surveyed said they “sometimes” or “always” have a problem with salaried employees not fulfilling their job requirements. But what if the salaried employee says it’s not their fault? They say they’re putting in 60 hours a week, but their workload is just too big to get it all done on time. Their manager says that’s not the case.
The best way to find out the truth? Time tracking. If an employee is right, their manager can give them the resources they need to start working 40 hours, instead of 60. If the employee is wrong, their manager has what they need to make an informed decision about their performance.
4. FLSA violations are expensive.
Every year, companies pay out millions of dollars for violating Fair Labor Standards Act (FLSA) regulations. Intentional or not, many are in violation for failing to pay their nonexempt, salaried employees overtime or even the required minimum wage. These are acts of wage theft.