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Why time recording is essential

🟦 The advantages of time recording and why many companies still do without it

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Leadtime aims to systematically improve productivity in the company. To do this, we need to quantify productivity precisely - and the most obvious unit for this is time.

For a service company in particular, time is an extremely valuable resource: the business model is ultimately based on selling employees' working time to customers. Every activity in the company consumes time - whether it is work on a customer project or a conversation in the hallway. And of course, not all of these activities are equally productive. Therefore, management should develop a deep understanding of how the working time available in the company is used. And with this in mind, there is no getting around comprehensive time recording.

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Time recording is often neglected

In our experience, many companies in the industry unfortunately only use time recording inconsistently - for example, only for billing customer projects. The reason is that time recording is often unpopularwith employees; it simply feels a bit like monitoring and control. And we don't even want to dismiss this argument out of hand: Of course that's exactly the point. We want to get a comprehensive picture of how the working time available in the company is used - after all, we pay for it in the form of salaries. However, it is not our aim to indict individual employees. Our aim is to analyze structures in the company's time consumption and uncover potential for improving overall productivity.

Typical resistance to time recording

It is obvious: complete time recording is extremely useful and informative for an organization; nevertheless, many companies do not use this powerful tool consistently or even do without it altogether. These are the most common reasons:

Resistance to micromanagement.

Time tracking is often perceived by employees as a form of micromanagement, which can lead to discomfort and resistance. Employees often value a certain degree of autonomy in their work. If there is a perception that the new measures are to be used as a means of monitoring and control, this can undermine trust between management and staff. Instead of being a tool to improve efficiency and productivity, time recording is then perceived as a sign of a lack of appreciation for their professionalism.

Frustration due to additional work.

The implementation of a task-based time tracker can be perceived by employees as a hindrance or inconvenience. For truly meaningful data, it is essential that employees document their activities in real time. And if they have to regularly switch between different applications to do so, this can be perceived as a disruptive interruption to the natural flow of work. Of course, this is especially true in creative or highly focused work areas such as code development, where any interruption to concentration can feel very frustrating. Time tracking is then perceived as superfluous extra work that does not directly contribute to productivity or the quality of the work being done.

Underestimating the benefits.

Management often underestimates how useful cleanly recorded time and attendance data would really be for managing the business and making strategic decisions. Time tracking provides valuable insights into workflows, employee utilization and project efficiency. This information is critical to making informed decisions about resource allocation, budgeting and process optimization.

"It used to work without time tracking"

Assuming that just because a company has been successful without formal time tracking in the past, it will not need such systems in the future is a cognitive bias that can jeopardize the organization's adaptability and future competitiveness. This argument overlooks the dynamic nature of the business environment and the ever-increasing demands on efficiency and productivity. In the early stages of the business, an informal or ad-hoc approach to time management may have been sufficient. However, as the company grows, the number of employees increases and projects become more complex, a systematic approach to time tracking becomes increasingly necessary and effective. This is because the loss of working time due to inefficient processes and fruitless meetings multiplies with each new employee.

Taking the team with you

We therefore strongly recommend that you involve your team in the introduction of time recording. Ideally, you should prepare a presentation in which you outline the most important benefits and introduce the system. Here are the most important arguments in favor of consistent time recording:

Advantages for the individual employee

  • More conscious use of time. Documenting your own time use promotes a more conscious use of time. Employees recognize how much time is spent on unproductive activities such as aimless surfing or using social media.
  • Clearer focus. Time tracking supports concentration on individual tasks instead of ineffective multitasking. This encourages a satisfying way of working in manageable task packages.
  • Less stress. A clearer picture of your own performance and workload helps you prioritize tasks and set realistic goals, which reduces stress levels.
  • More personal responsibility. The awareness that every minute counts strengthens concentration and motivation, which leads to increased job satisfaction.

Organizational benefits

  • Synchronization of the team. Time tracking ensures a uniform level of information within the team, which is crucial for meeting deadlines and coordinating team activities.
  • Progress measurement. Managers can monitor the team's progress and make adjustments if necessary.
  • Better workload distribution. By tracking working hours, imbalances in work distribution can be identified and adjusted. This ensures that the workload is distributed fairly.
  • Identification of potential for improvement. By analyzing working hours, areas can be identified in which the efficiency and productivity of the team or individual members can be increased.

Financial benefits

  • More resilient bids. By accurately recording the time spent on different tasks and projects, companies can progressively make more accurate cost estimates. This allows them to create more realistic and competitive quotes that are beneficial to both the company and the customer. Transparent invoices increase customer confidence in the efficiency and fairness of the company and signal professionalism and reliability.
  • Ensuring profitable projects. Time recording is also indispensable for companies that charge flat rates. Without time tracking, it can go unnoticed that some projects consume more resources than they bring in. With accurate time tracking, you can ensure that each project not only satisfies your customers, but also remains financially viable.

When introducing time tracking across the board, it's important to take your employees' fears and concerns seriously. Emphasize that this is a necessary organizational professionalization step. Make it clear that the company can no longer be managed effectively above a certain size without this step. In this context, point out existing organizational pain points in the company. And above all: set a good example. If the boss does not record his or her time properly, this careless working style will be transferred to the team.

Enforce time recording with Leadtime

Leadtime integrates time recording seamlessly into the daily work routine and enables simple and intuitive time recording. Leadtime's key time tracking features include

  • Task-based tracking: employees book their working time directly to specific tasks and projects, ensuring all work performed is accurately recorded and allocated.
  • Automatic reminders: Leadtime automatically reminds employees to record their time to avoid forgotten entries and ensure complete documentation.
  • Comprehensive reports: Leadtime provides powerful time tracking reports and analytics that give management valuable insights into productivity, project profitability and employee utilization.
  • Customizable settings: Leadtime can be customized to meet the company's specific needs, such as defining different activity types or setting up individual time accounts for employees.
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Consistent time tracking is also the most important basis for measuring and understanding the productivity of your own organization.

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