Blog | August 30, 2024
Construction Time Tracking: Timecards vs. Spreadsheets vs. Time Tracking Apps
Developing an effective time tracking strategy empowers contractors to reduce unnecessary labor costs and perform accurate job costing.
Some popular ways to manage a labor force include spreadsheets, timecards or construction time tracking software.
Whether you’re in the market for a new field solution or are currently implementing a time tracking strategy, we’ll discuss each option more in-depth so you can make the best workforce management decision for your operations.
Manual Timecards for Construction
Manual timecards are what comes to mind when most people think of timekeeping. Employees take their assigned timecard and punch in and punch out of a timeclock. While this is traditionally how time tracking was done in the past, there have been advancements that expose the inefficiencies of this process for many employers.
The Downside of Manual Timecards
Employers who use manual timecards expect their workers to remember to clock in and clock out — oftentimes with limited oversight. This could result in inflated labor costs because employees forget to clock in and clock out or rely on buddy punching.
Buddy punching is when an employee punches in or out for another employee — usually resulting in employees being paid wages for more hours than they’ve worked.
Manual timecards put the responsibility solely on the employees to track their hours accurately, which can cause issues when calculating payroll.
Construction Spreadsheets
Employers implement spreadsheets to track employee hours. These spreadsheets normally include the shifts worked, any accrued overtime and the location where each employee spent their time.
This data is later used in the payroll process to calculate wages and fill out certified payroll reports and union reports, if applicable.
The accuracy of this information is crucial to ensure workers are paid the correct wages and that the employer maintains compliance with labor laws.
The Disadvantages of Spreadsheets
Spreadsheets require a payroll clerk to manually enter hours. The larger the company the more challenging spreadsheets become. Tracking where employees worked, for how long and ensuring they took their mandated breaks can be nearly impossible to do manually for larger contractors.
Construction Mobile Time Tracking Apps
While manual timecards put the responsibility in each employee’s hands and spreadsheets are mainly managed by the employer, time tracking apps offer a happy medium.
Construction time tracking software remind workers to clock in and clock out by sending automated notifications to each of their mobile devices. And there are fail-safes in place to avoid buddy punching and other time stealing tactics thanks to biometrics like facial recognition and digital fingerprints.
These mobile apps also take the stress off employers who have relied on spreadsheets to manage and calculate hours. Employers who use a time tracking app can calculate employee hours instantly within the app and review them for inconsistencies before sending employee hours to their payroll department or through a payroll software or service. There are several advantages of construction time tracking apps.
The Benefits of Construction Time Tracking Apps
Contractors who opt for a time tracking app receive benefits like:
- Saved Time: Contractors no longer have to manually add any hours or gather timecards from the site. A mobile app does it all for the crew.
- Enhanced Visibility: Mobile apps collect information from the field and directly upload the data to the shared database. Office workers can see what’s happening in the field throughout the workday.
- Increased Accuracy: Construction time tracking apps like WorkMax offer facial recognition and GPS tracking to reduce buddy punching and other time stealing tactics to reduce labor costs.
- Improved Reporting: Employers can receive real-time insights and adjust their project approach in real-time to avoid inflated labor costs and allocate resources to address project needs in a moment’s notice.
- Streamlined Processes: Some time tracking apps can integrate with payroll and accounting solutions to seamlessly transform employee’s time worked into accurate paychecks.
- The integration ensures you have accurate hours to project labor costs and submit timely payroll compliance items to the necessary agencies.
Invest in a Construction-Specific Time Tracking Software
Construction time tracking software gives employers access to unique information they can use to improve their profitability and productivity across their entire operation.
Accurate time tracking means accurate payroll, which has a trickle-down effect on job costing, and ultimately, helps contractors project their profitability.
Time tracking apps like WorkMax also offer integration capabilities with payroll software or services, like Payroll4Construction. This integration closes the gap between time tracking and payroll by importing the data directly from WorkMax into Payroll4Construction —eliminating double entry and potential manual entry errors.
To learn more about WorkMax, talk to a specialist today!