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Track Time

Project Time Tracking as A Game Changer for Project Management

Cassio Sagawa
October 4, 2022
27 minutes to read

Success often hinges on the ability to manage a critical resource: time. Time tracking, while seemingly simple, has immense potential to boost productivity, streamline processes and enhance outcomes – yet is still underutilized in many professional circles. 

In this comprehensive exploration, we’ll delve into the multifaceted world of project time tracking. We’ll illuminate its core concepts, emphasize its importance and offer insights on practical implementation. With a strategic approach, time tracking can be transformed from an intimidating task to an influential asset in your project management toolbox.

Uncover how this practice can usher in a new era of efficiency, control and overall success. It’s time not just to count the hours, but to make each hour count.

Throughout this article, we’ll discuss:

Ready? Let’s take a look.

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What Is Project Time Tracking?

Project management is an intricate field, interweaving an array of resources and activities into a unified tapestry of success. At the heart of this matrix lies project time tracking, a pivotal aspect that delicately balances every task and phase within a project’s lifespan.

Project management time tracking is the meticulous process of recording and analyzing the time dedicated to each task within a project. It operates as a compass, steering your projects on their intended course and timeline. It plays the role of a vigilant sentinel, identifying potential bottlenecks that could impede progress. And it serves as a barometer, tracing your advancement toward the project’s goals, and transforming nebulous progress into quantifiable metrics.

When it comes to the execution of time tracking, it is not a one-size-fits-all scenario. The approach morphs, adapting to the unique needs of your project and your individual preferences as a project manager. Traditional methods range from using a primary timer to manually logging hours in a spreadsheet.

However, the digital revolution has ushered in sophisticated project management and time tracking software. These dedicated tools streamline the time tracking process, automating time logs and providing real-time insights into your project’s progress. They become the digital heartbeat of your project, pulsing with valuable data and powerful metrics that drive decision-making and efficiency.

Why Use Project Time Tracking?

Projects are usually broken down into tasks that need to be completed to achieve the goal of the project. Time tracking can help you understand how long each task takes, and this knowledge can help you estimate future projects more accurately.

In addition, tracking your projects’ time has the following incredible benefits.

1. Increased productivity

By recording the amount of time you spend on each task, you can get a more accurate picture of how much work you are completing each day (or week, month, etc.). This information can help you to identify patterns and optimize your work schedule for increased productivity.

For example, if you tend to spend a lot of time on tasks that are not particularly productive, you might decide to re-evaluate your priorities and focus more of your time on high-priority items.

Recording your project time also allows you to track your progress and see how much time you are actually spending on each task, which can be helpful when estimating future projects.

2. Added flexibility

One of the benefits that comes with time tracking your projects is the added flexibility it affords you.

If, for example, you find that a particular task is taking longer than expected, you can simply adjust your timeline accordingly. Conversely, if a job is completed more quickly than anticipated, you can allot that freed-up time to another project.

This newfound flexibility can also be helpful when it comes to budgeting. If you have a good sense of how long each project will take, you can better plan for and allocate your resources.

3. Better resource allocation

Understanding the duration of tasks or projects is critical for any organization as it facilitates optimal resource allocation. Through time tracking, it’s possible to identify areas where workflow could be stuck or where time may be used inefficiently.

This vital information can be leveraged to fine-tune schedules and deadlines, allocate tasks with greater efficiency, and maximize the utilization of team members’ time. Moreover, it offers an opportunity to compare different work methods, enabling process optimization.

For instance, you might observe that a task consumes more time when assigned to a team as opposed to an individual. Based on this insight, you can redistribute tasks among the team members, ensuring their time is utilized more effectively.

4. Accountability

When all members of a project team are being tracked in terms of the time they spend on different tasks, it becomes much easier to hold them accountable for meeting deadlines. This is especially important when working with remote team members who are not always under the same roof as you.

This isn’t about shaming or embarrassing team members, but instead, making sure that everyone is aware of what they need to do and when it needs to be done so that everyone can work together towards a common goal.

Project time tracking can also help identify areas where team members are struggling so that you can provide additional support. Sometimes, a missed deadline is more indicative of a lack of training or understanding rather than a lack of effort.

5. Reduced costs

Time is money  , which means every bit of time wasted on a project costs the business money. Time tracking can help businesses reduce time wasted on projects, improving efficiency and reducing costs.

Time tracking also enables businesses to measure individual projects’ return on investment (ROI), helping to justify future investments and identify which projects are most profitable.

6. More focused team

Using project time tracking helps to improve the focus of your entire team. This is because every team member can see what everyone else is working on and how much time they spend on their tasks.

With this information, team members can better manage their own time and ensure they are not taking too long on tasks that others could finish more quickly. This improved focus also helps to ensure that deadlines are met.

As tasks are completed, team members can mark them as such in the time tracking software. This accurately shows how much work is left to be done and when the project is likely to be completed.

This information can also help to identify potential problems with a project. For example, if a number of tasks are taking longer than expected to complete, it may be an indication that there is something wrong with the original plan or that the team is not working well together.

How to Track Your Time Effectively

So, we know that there are a plethora of benefits to time tracking  –  but what’s the best way to go about it? Here are some tips:

  1. Adopt a time tracking solution. This is arguably the most effective method to monitor your time as it consolidates all your data in one location and can auto-generate reports. Utilizing such a tool can provide a comprehensive view of your daily, weekly, or monthly time expenditure. Numerous options are available, so ensure to pick one that aligns with your requirements.
  2. Keep a timesheet. If you’re not using a time tracking tool, keeping a timesheet is the next best thing. This can be as simple as writing down the start and end times of each task every day.
  3. Use a timer. If you’re not keen on writing down what you’re doing all day, that’s fine – try using a timer instead. This can be a physical timer (like a kitchen timer) or an online timer (many great ones are available on the marketplace). Timers are a great way to stay focused on the task at hand, and they can also help measure how long tasks take.
  4. Make time tracking a habit. The best way to ensure that you track your time effectively is to make it into a routine. You could do this first thing in the morning or last thing at night. Whatever the habit may be, schedule specific times every day to track your time, and make sure to stick to it.
  5. Track your time for specific tasks. If you’re only interested in tracking the time you spend on certain tasks, that’s fine too. This can be helpful if you want to see how long certain tasks take you to complete. Just make sure to track your time accurately, otherwise the data won’t be useful.

All of these tips can be made easier with the help of time tracking software — so let’s take a closer look.

Project Time Tracking Software: What Is It?

To make your project management significantly easier, you can use special software that helps to track time. Time tracking software is a program that monitors the time you spend on each project task. It calculates the total time spent on the project and provides detailed reports on how it was distributed among different tasks.

There are both paid and free time tracking software programs. The latter are usually limited in functionality and cannot be used for commercial purposes. On the other hand, paid software products are more versatile and can be used for various purposes, such as billing clients, tracking employee time, etc.

Time Tracking in The 21st Century

The modern world is vastly different and changes incredibly quickly. As the world around us has changed, it’s clear that the working world has changed.

  1. The evolution of time tracking in the 21st century: In the rapidly evolving landscape of the modern world, the importance of time tracking has been amplified. It has metamorphosed from a mere organizational tool to an integral element in businesses of all sizes across various sectors.
  2. The ubiquity of time tracking: Time tracking has seeped into all personal and professional aspects of our lives. From businesses monitoring employee hours to individuals using apps to optimize personal productivity, time tracking has become a societal norm.
  3. The driving forces behind time tracking: Several factors have fueled the rise in the prominence of time tracking. The need for efficiency and accountability has never been higher in the business world. For employees, there’s an increased emphasis on achieving work-life balance and continuous self-improvement. And universally, there’s a collective strive to maximize our time usage.
  4. The emergence of remote work and time tracking: As remote work continues its ascent towards becoming the standard, time tracking has become an essential tool for companies and employees. It empowers managers to monitor their team’s progress and ensures employees utilize their time effectively in a remote working environment.
  5. The future of time tracking amidst the prevalence of remote work: The pandemic and work disruptions accelerated the adoption of remote work, and this trend shows no sign of reversing. Consequently, the importance and relevance of time tracking are only set to increase in the foreseeable future.
  6. The advancement of time tracking software: Time tracking software has come a long way. Today, the market has options, ranging from basic tools that log time spent on tasks to advanced software providing in-depth insights and analyses.

Let’s further discuss how to choose the right time tracking software for your own projects.

Choosing Time Tracking Software for Your Projects

As aforementioned, time tracking tools vary greatly in features, complexity, and pricing. Determining which features are necessary for your project and which software can provide them without breaking the bank is important.

1. Assess your needs

To find the tool that is most suited to your business and projects, begin by asking yourself the following questions:

  • What features are necessary for my project?
  • How complex is my project?
  • What is my budget for time tracking software?

You can assess your specific needs by answering these questions and directing your search toward the right software.

2. Research

Once you have a good idea of what you’re looking for, it is time to do some research. Project management and time tracking software come with various features, pricing, and levels of complexity to fit any business or project.

When researching time tracking software, it is essential to read user and expert reviews. User reviews can give you a good idea of how easy the software is to use and whether it has all the features you require. Expert reviews can help you determine if the software is complex enough for your project or if the price is worth the features offered.

3. Test them out

After researching time tracking software, you’ll need to test a few to find the best one. It’s almost impossible to know which software will work best for you until you try it. Once you’ve found the right time tracking software, read the manual and watch tutorials to learn how to use all of its features. Time tracking can be complex, so it’s important to be familiar with all of the software’s features.

What to Look for in Your Project Time Tracking Software?

Navigating the world of project time tracking software can be daunting. With countless solutions on the market, it’s essential to identify the critical features that will best support your project management needs. Here are key functionalities you should consider when choosing your project time tracking software. Due to its comprehensive and user-friendly features, we’ll use Day.io as a benchmark.

1. Time Clock for Easy Clock-In and Out

An efficient time tracking software should include an intuitive time clock feature, allowing employees to clock in and out easily. This helps to maintain an accurate record of working hours. Day.io excels in this area with its streamlined clock-in and out system that is both user-friendly and accurate.

2. GPS and Biometric Validations

In our increasingly remote world, GPS and biometric validations have become essential. These features verify the location and identity of employees when they clock in, ensuring authenticity. Day.io offers this level of validation, bringing an added layer of security and trust.

3. Timesheet Calculation and Customization

A robust time tracking software should provide customizable timesheets that automatically calculate hours worked, overtime, and leave time. Day.io does just that with a dynamic timesheet system that caters to the unique needs of each project and team.

4. Employee Scheduling

To manage projects effectively, having a tool that allows for comprehensive employee scheduling is invaluable. Day.io provides this feature, enabling project managers to schedule tasks, allocate resources, and foresee potential scheduling conflicts.

5. Digital Signature Management

Digital signature management is a crucial feature for verifying timesheets and leaves approvals. Day.io integrates this feature seamlessly, promoting transparency and accountability in your team.

6. Cloud Storage and Backup

A reliable cloud storage and backup system ensures your data remains safe and accessible. Day.io leverages cloud technology to securely store all time tracking data, making it available whenever and wherever you need it.

7. Employee Self-Service

Empowering employees with self-service options can save valuable time for project managers. With Day.io, employees can access their time data, submit leave requests, and view their schedules, promoting autonomy and efficiency.

8. Leave Management and Approval

Managing leave requests, time offs and approvals can be a time-consuming process. Day.io simplifies this with an integrated leave management system, allowing project managers to effortlessly track, approve, or decline leave requests.

9. Cost and Billing Analysis

For many businesses, monitoring and analyzing costs and billing is crucial. Day.io provides detailed cost and billing analysis, giving project managers crucial insights into project profitability and budget management.

Incorporating a project time tracking software like Day.io that encompasses these features will pave the way for a more efficient, transparent, and productive project management process.

The Role of Time Tracking in Remote Work

As the shift towards remote work continues to accelerate, time tracking has become increasingly significant. Implementing effective time tracking methods in a remote setting can dramatically enhance productivity, accountability, and overall project success. Let’s explore the crucial role time tracking plays in remote work.

1. Facilitating Productivity and Efficiency

Maintaining productivity and efficiency in a remote work environment can be challenging due to the lack of direct supervision and potential distractions. Time tracking can mitigate these challenges by enabling employees and managers to visualize the time spent on various tasks. This insight can highlight areas of inefficiency and guide strategies to enhance productivity.

2. Promoting Accountability and Transparency

Time tracking promotes accountability and transparency, two crucial factors for successful remote work. By tracking their time, remote employees can provide a tangible account of their work, demonstrating their commitment and diligence. On the other hand, managers can access these time logs to maintain oversight and ensure the team is working effectively towards project goals.

3. Empowering Flexibility and Work-Life Balance

Remote work offers flexibility but blurs the line between personal and professional time. Time tracking can help employees establish clear boundaries, ensuring they allocate sufficient time for work tasks without compromising personal time. This promotes a healthier work-life balance, crucial for maintaining job satisfaction and productivity in a remote environment.

4. Enhancing Communication and Collaboration

Lastly, time tracking can enhance communication and collaboration in remote teams. Time tracking can facilitate more effective project planning and task allocation by providing a clear picture of how time is spent. This promotes better coordination and collaboration, leading to improved project outcomes.

How to Use Time Tracking Software for Better Project Management

If you have found a tool that suits your needs and can track your projects, that’s great! Now it’s time to learn how to use it for better productivity and outcomes.

Here are some implementation tips for making the most of your software:

1. Use time tracking software to capture all time related to your project.

This includes time spent on tasks, emails, phone calls, and other work-related activities. Capturing all time related to the project will give you an accurate picture of how much effort is being put into it.

2. Set realistic deadlines and track how often they are met.

If you cannot meet a deadline, use the time tracking software to determine where the hold-up is. This will help you make better decisions about future timelines.

3. Compare estimated time with actual time spent.

Are you consistently underestimating or overestimating the time it will take to complete tasks? Use the data from your time tracking software to make more accurate estimates in the future.

4. Keep a weekly log of time spent on each task.

This will help you track your progress and identify any tasks that take longer than expected.

5. Use the data to create reports and presentations.

Time tracking software can provide valuable insights into how your team is performing. Use this data to show your boss or client how well the project is going and where potential improvements could be made.

6. Celebrate successes and learn from failures.

Use the data gathered from time tracking software to identify what went well on the project and what didn’t. This information can help you replicate successes and avoid making the same mistakes in future projects.

With these tips in mind, a time tracking tool can help to boost your productivity through the roof!

5 Signs You Need Time Tracking Software

If you’re unsure whether time tracking software is the most effective option for your firm, let’s restate that question. Here are some telltale signs that you need to start tracking employee time.

1. You don’t trust your employees’ work hours

Do you feel your employees are slacking off or working fewer hours than they should be? If you can’t trust your team to report their work hours accurately, it’s time to invest in a time tracker.

This way, you’ll have an objective record of exactly how much time was spent on each project, task, and meeting. It means you’ll have a much clearer picture of how your team is performing and where any issues are.

2. You’re worried about meeting deadlines

If you’re constantly biting your nails over whether or not projects will be completed on time, it might be worth looking into a time tracking solution.

You’ll be able to see which tasks are taking longer than anticipated and make necessary adjustments to ensure that future deadlines are met.

Time tracking can also help you identify potential bottlenecks in your workflow so you can address them accordingly.

Consider a situation where one team member consistently takes longer to complete their tasks. If this is the case, you can assign additional resources or develop a new game plan to get things done more efficiently.

3. You want to improve billable hours

Working in law? Accounting? Advisory? If your business runs on billable hours, you must make the most of every minute. Time tracking software can help you see where there’s room for improvement when billing clients appropriately.

Perhaps you’re underestimating the time certain tasks take or maybe there are inefficiencies in your workflow that need to be ironed out.

In any case, by tracking employee time, you can better understand how to improve your billable hours and make the most of your team’s time.

4. You feel like productivity is slipping

If you’ve noticed a dip in employee productivity levels, it might be worth looking into time tracking software as a potential solution.

By using time tracking software, you’ll see how employees spend their time and identify any potential distractions or time-wasting activities. Once you’ve pinpointed the issue, you can take steps to address it accordingly.

For example, if you notice employees spending too much time on social media during work hours, you can implement a policy to limit access to these sites during work hours.

5. You want to make better use of your data

Time tracking software generates a wealth of data that can be extremely valuable to your business. You can gain insights into trends and patterns in your workflow by tracking employee time.

This information can be used to make informed decisions about optimizing your process and improving efficiency. If you’re not already using this data to inform your decision-making, it’s time to start!

There are several different time tracking software options on the market, so it’s essential to choose one that makes sense for your business.

Take a close look at the marketplace and you’ll be able to identify the perfect time tracking software for your particular needs.

Time Tracking Software: What Not To Do

With all the advice given above, we must also cover what not to do when working with time tracking software.

It’s far too easy to get sucked into what you’re supposed to do, and then you realize later that you’ve been incorporating some bad practices and all the good ones.

So, without further ado, here are four things to avoid doing when using time tracking software.

1. Don’t make it a chore

The most important thing to remember is that time tracking should not be a chore — it should be something you do without thinking, almost like brushing your teeth.

If you have to force yourself to do it, there’s something wrong, and a solution is required. The most optimal way to ensure that time tracking doesn’t become a chore is to integrate it into your workflow to suit you and your firm best.

An example of how to do this would be to incorporate the software into your daily standup meeting, or if you’re already using an issue-tracking system like JIRA, then link the two together so that time tracking is done automatically.

2. Don’t get bogged down in the details

One of the most common mistakes people make when first starting to use time tracking software is getting bogged down in the details and trying to track everything they do.

This quickly becomes overwhelming and leads to people quitting the software altogether.

The key is to start small and only track the important things to you. As you get more comfortable with the software, you can start tracking more things if you feel it’s necessary.

3. Don’t be afraid to change your mind

Another mistake people make is that they’re afraid to change their minds about how they’re tracking their time. If something isn’t working for you, don’t be afraid to raise your voice and change it.

The software is there to help you, not to make your life more difficult. Be flexible, be adaptable, and ensure you’re using the software in a way that works for you.

4. Don’t forget to take breaks

Don’t forget to take breaks! It’s essential to have some time away from work, even if it’s just 10 minutes to grab a coffee or walk.

When you’re constantly staring at a screen and working on something, it’s easy to lose track of time and work longer hours than necessary.

Just because you plan on tracking time for a specific task does not mean you have to work non-stop until it’s done. Take breaks, clear your head, and return to the task refreshed and ready.

5. Don’t micromanage

If you choose to incorporate a time tracker into your firm so your employees can see how they’re spending their time, don’t micromanage.

Trusting your employees and giving them the autonomy to work in the way that suits them best is essential. If you start second-guessing every little thing they do, it’ll quickly lead to frustration on both sides and decrease productivity overall.

Time tracking software can be a handy tool, but only if it’s used correctly. Avoid these five pitfalls, and you’ll be well on your way to using the software in a way that benefits you and your firm.

How to Encourage Your Team to Use Time Tracking Software

Implementing time tracking software is a crucial first step, but the success of this tool depends mainly on your team’s active participation. To achieve this, it’s essential to create an atmosphere that encourages employees to utilize the time tracking software regularly and effectively. Here are a few strategies to consider:

1. Emphasize the benefits, not just the tracking

First and foremost, position the time tracking software as a tool to enhance productivity and work-life balance rather than a means to monitor work hours merely. Show your team how it can help them manage their time, improve their workflow, and prevent burnout.

2. Provide comprehensive training

Ensure your team understands how to use the time tracking software by providing comprehensive training. A user-friendly experience can significantly increase software adoption.

3. Integrate with existing tools

Wherever possible, integrate the time tracking software with tools your team already uses daily. This can make the transition smoother and increase the likelihood of consistent use.

4. Encourage transparency

Promote a culture of transparency by sharing time tracking data with the team. This can help them understand how their time is spent, promote self-improvement, and demonstrate the impact of their work.

5. Use data to celebrate achievements

Use the data from your time tracking software to recognize and celebrate your team’s achievements. This can motivate your team to use the software consistently and reinforce its benefits.

6. Solicit feedback and adapt

Finally, encourage your team to provide feedback on the time tracking software. Their insights can help identify issues and inform improvements, fostering a sense of ownership and commitment to the tool.

Ensure to communicate to your project team that the goal of implementing time tracking software is not to micromanage but to empower your team and enhance project outcomes. With the right approach, your team can embrace time tracking as a valuable asset rather than a surveillance tool.

Incorporating Agile Methodologies with Time Tracking

Agile methodology and time tracking are at odds with each other – one values adaptability and fluidity, while the other seeks to measure and control time. However, when applied thoughtfully, these two can work harmoniously to improve project outcomes significantly. Let’s explore how you can incorporate agile methodologies with time tracking.

1. Use Time Tracking to Inform Agile Estimations

Agile teams often use story points or T-shirt sizes to estimate task effort. However, time tracking can supplement these estimation techniques by providing concrete data on how long similar tasks have taken. This can make estimates more accurate and help teams plan iterations more effectively.

2. Leverage Time Tracking for Retrospectives

In agile methodology, retrospectives are essential to continuous improvement. Time tracking can contribute valuable data to these discussions, highlighting discrepancies between estimated and actual time spent on tasks. This insight can inform workflow adjustments, task allocations, and future estimates, fostering an ongoing optimization process.

3. Align Time Tracking with Agile Principles

Rather than viewing time tracking as a tool of control, align it with the principles of agile. Emphasize that time tracking is not intended to micromanage but to empower teams with insights into their work patterns. This shift in perspective can promote acceptance of time tracking among agile teams.

4. Promote Transparency and Collaboration

In line with agile principles, use time tracking to promote transparency and collaboration. Share time data with the team, and use it as a basis for discussions on workload balance, capacity planning, and process improvements.

Time Tracking Metrics that Matter in Project Management

Time tracking isn’t just about counting hours. It’s about using the data captured to derive valuable insights that can drive project success. Let’s take a look at some key time tracking metrics that can offer a deeper understanding of your project’s health and progress.

  1. Billable vs non-billable hours: Understanding the proportion of billable hours (time spent on tasks that generate revenue) to non-billable hours (time spent on tasks that don’t directly generate revenue) can provide insights into the profitability of your projects and the efficiency of your team.
  2. Overtime hours: Keeping overtime hours can help identify workload imbalances and potential burnout risks. It can also factor into project costs and should be monitored closely.
  3. Time spent per task: This metric can reveal the most time-consuming tasks within your project, identifying areas where process improvements could be made, or additional resources may be needed.
  4. Time spent per project phase: Assessing the time spent on each phase of a project can help in future project planning and allocation of resources. If one phase consistently takes longer than expected, it might need to be revisited in the planning stages.
  5. Project budget variance: You can calculate your budget variance by tracking the actual time spent on a project against the projected time. This provides a clear indicator of project performance and profitability.
  6. Employee capacity refers to the amount of time an employee has available for work minus time spent on breaks or non-work-related tasks. Monitoring this can help ensure employees are not overloaded and tasks are distributed effectively.

Each of these metrics can offer different insights into your project and team performance. By understanding and tracking these metrics, you can make data-driven decisions that drive efficiency, productivity, and project success.

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Final Thoughts

Embracing project time tracking can be a game-changer. It validates your team’s dedicated work and illuminates areas for potential efficiency gains. Numerous methods of time tracking exist, each adaptable to different project needs. The essence, however, is comprehensive tracking – every minute matters, even those spent on administrative tasks.

Project time tracking software like Day.io can transform the way you manage projects. This tool goes beyond just clocking hours; it is your ally in delivering outstanding value to your clients and streamlining your processes.

Get started with Day.io today – it’s a perfect blend of project management and time tracking software. The best part? It’s free for up to ten users. Take a step towards efficient project management with free project time tracking. Sign up today and experience the Day.io difference.