If you own a small business or work for one, you know that time is your scarcest resource. Every minute counts when it comes to getting things done. Keeping track of time can be extremely difficult for small businesses and employees alike. Time tracking software has made it a bit easier for companies by helping them monitor employee performance, identify peak times and provide managers with real-time insights on how their team spends its time. However, not everyone sees the advantages of using time tracking software.

Benefits of Using Time Tracking Software to Monitor Employee Performance

  • Time clock software can also help you determine if your employees are taking advantage of their time. If they are constantly busy but not getting anything done, time tracking software will be able to show you this.
  • Time tracking software helps you get a better idea of how much time employees spend on different tasks each day. This can help you identify areas where employees waste time and find ways to spend less time on those tasks.
  • The software provides precision timings for discrepancies- With time tracking software, you can easily find the discrepancy between expected and actual timings. You can then take corrective actions like pushing back a meeting so you don’t spend too much time on things that aren’t critical to the company’s growth.
  • Time tracking software can help employees stay focused on their work when working on a project or completing a task that requires a lot of concentration.
  • Time tracking software can help develop an employee-specific skills matrix- With time tracking software, you can easily take the data you collect and use it to create an employee skills matrix.
  • Time tracking software can help identify and correct any performance issues, such as poor time management or project estimates.
  • Establish company culture and values through employee discussions- When you use time tracking software, you can use the data you collect to create a culture of accountability and transparency in your organization.
  • Time tracking software can help you stay on top of employee behavior and routines- It’s essential to stay on top of the work your employees are doing and know what progress they’re making towards the goals you set for them.

Disadvantages of Using Time Tracking Software to Monitor Employee Performance

  • Disruptive workforces may be a barrier to measurement-Some employees may not like being monitored and being held accountable for the time they’re spending on projects.
  • The software can be overwhelming for new users- Not only do you need to find a time tracking solution that works for your company, but you’ll also need to figure out how to use the data the software collects. You’ll need to learn how to read reports showing how much time employees spend on different projects and tasks throughout the day.
  • The software is costly- It will cost you money to get this software set up, and it will also cost you money to keep it up and running.
  • Time tracking software can be too detailed, causing you to focus on the wrong things and miss out on other opportunities that may have come up.
  • It can be challenging to get accustomed to time tracking software and keep track of when you’re switching between projects.
  • It’s challenging to create objective performance indicators- The problem with most time tracking software is that it relies on one or a few hands to determine an employee’s performance. These indicators might be how many tickets they handle in a day, how many new customers they sign up with, or how many words they write in a blog post.
  • The data you get from time tracking software is typically too detailed and becomes useless after some time.


Time tracking software can be a valuable tool to help you manage your employee’s time and stay focused on projects and activities that need your attention. It can also help you get estimates for projects and plan your work and schedule more efficiently. Before deciding to use time tracking software, it’s essential to consider whether it’s right for you and your team.