Manually tracking work hours is a huge headache. Employees guesstimate their work hours, don’t turn in their timesheets, forget to punch their cards, and make simple errors. You have multiple notebooks and spreadsheets filled with important information scattered all over your office and shared drive.
The bigger your business gets, the more unmanageable and inaccurate this becomes. Inaccurate records mean you don’t know if employees are taking the required breaks, doing unauthorized overtime (which you’ll be on the hook for), or, in some cases, abusing the system.
So you spend more than necessary on labor costs. And you run the risk of violating local labor laws.
Luckily, online time tracking ensures your timekeeping records are accurate and compliant. In this guide, you’ll learn how to set up an online time tracking system for your business.
What are the Benefits of Automated Time Tracking for Businesses?
There are two main reasons why smart businesses automate time tracking.
1. Automated Time Tracking Helps You Comply With Labor Laws
Automatically tracking time means you know exactly how much overtime employees do, whether they take their required breaks, and exactly how many hours they work. This makes it easier to show that your business complies with labor laws.
Take the U.S. for example. The Fair Labor Standards Act requires employers to keep accurate time records for all non-exempt employees. Without this, businesses risk non-compliance, which can lead to costly lawsuits and penalties. Automated time tracking ensures that records are precise, consistent, and easy to retrieve.
But that’s not the only reason you should strictly follow labor regulations. Being compliant also shows you’re committed to a fair working environment, which is key if you want to attract the best talent. And it helps create a positive relationship between staff and leadership.
The takeaway: Staying compliant involves tracking huge amounts of information, which is impossible to track manually. But use an automated online tracking system, and you don’t need to worry about this. Timebutler is fully customizable, so you can set timekeeping policies that satisfy local labor regulations.
2. Time Tracking Improves Efficiency
Some businesses save as much as 80 hours a month by switching to automated time tracking. This happens because automated time tracking removes the time spent on manual timesheet entry, chasing approvals, and fixing common errors like missed entries, incorrect hours, and miscalculated overtime.
Timekeeping will increase your efficiency, too. You’ll know when you are overstaffed or understaffed, so your workdays become more productive. You can use the data you collect to help you make better staffing and workload decisions.
The takeaway: Automated time tracking doesn’t just save time. It gives you the data and visibility to make smarter staffing decisions, reduce inefficiencies, and boost productivity across the board.
How to Choose the Right Time Tracking Software for Your Business
Trying to choose the right software for your business takes some planning. Big and small businesses have different needs. So do on-site, hybrid, and fully remote teams.
Let’s look at how to choose the right software for you, your business, and your employees.
1. Assess Your Business Needs
Not all time tracking tools offer the same features. Some prioritize project tracking, while others focus on labor law compliance or shift scheduling.
Understanding what you actually need — whether it’s mobile access, integrations, detailed reporting, or payroll support — helps you avoid paying for unnecessary features or missing critical ones, ultimately saving time, money,
Use the questions below to figure out the must-have features and vetting criteria for your online time tracker:
- Do you have hourly or salaried employees? If you have hourly employees, you’ll need reliable clock-in/clock-out tools, overtime tracking, and compliance alerts. For salaried teams, visibility into workloads and leave management might matter more.
- How many users do you need? Some tools are great for small teams, but get expensive or clunky as you scale. Make sure the tool can grow with you.
- Do employees work on-site, hybrid, or remote? On-site teams may need kiosk check-ins or mobile access. Remote or hybrid teams need flexible tracking across locations and time zones. If your employees are spread across countries, you’ll want software that can adapt to different labor laws.
- What time tracking features do you need? Prioritize online time tracking software with compliance support, reporting and analytics, and leave management options.
- What’s your budget? Some tools charge per user, while others have flat rates. Look out for hidden costs, and make sure you’re not overpaying for features you don’t need.
Once you’ve mapped all this out, you’ll be in a good position to choose a tool that actually fits, saving you time, money, and future headaches.
2. Compare Features and Pricing
Once you know what your business needs, use that as a checklist when evaluating your options. Start with a targeted Google search — for example, “best online time tracking software for remote teams” if your workforce is global. Visit each tool’s features page and compare what they offer against your list.
Make sure they cover the essentials without overwhelming you with unnecessary extras. A tool with too many complex features might sound impressive, but it can lead to low adoption if it’s more complicated than your team needs.
3. Evaluate Ease of Set Up and Use
Choosing a time tracker that’s easy to set up is crucial for fast adoption and minimal disruption. If a tool is too complex or takes too long to implement, your team may resist using it, or worse, abandon it altogether. Complicated setups often require external support, which adds unexpected costs and delays.
To evaluate ease of use, check whether the tool offers guided onboarding, clear documentation, or customer support during setup. Look for user reviews that mention the setup experience and interface clarity. If possible, sign up for a free trial to test it yourself.
Pay attention to how intuitive it feels—can you get started without needing a manual or tech support? The smoother the setup, the quicker you’ll start seeing value.
4. Check for Compliance Support
Choose time tracking software with built-in compliance features to ensure compliance and protect your business from legal risks. Labor laws vary by region, and failing to meet requirements, like accurate recordkeeping, break tracking, or overtime calculations, can lead to fines or lawsuits. A tool that helps you stay compliant ensures your records are reliable and keeps your business audit-ready.
If all your employees are based in one place, look for software that meets those local regulations. If you have employees in multiple areas, look for software with customization features. These will allow you to set rules for staff based on location.
Here’s how to check for compliance support in a time tracking tool:
- Look for tools that let you set custom rules for breaks, overtime, and maximum working hours based on employee location or role.
- Ensure the tool automatically records hours worked, breaks taken, and overtime, with time logs that can’t be edited without a trace.
- Check if it includes features to track and enforce legally required breaks and rest periods.
- Ensure it can calculate overtime correctly according to local regulations (e.g., time-and-a-half after 40 hours per week).
- Confirm that it offers exportable, audit-ready timesheets and integrates smoothly with your payroll system.
- See if it includes audit-friendly features like approval history, locked timesheets, or uneditable logs.
- Look for clear documentation showing which regions and labor laws the software supports, such as the FLSA in the U.S. or the EU Working Time Directive.
5. Test and Evaluate the Time Tracker Before Committing
Test the time tracker to be sure it actually works for your business. A tool might look good on paper, but if it’s challenging to use or doesn’t meet your key needs, adoption will be a struggle, and wasted time and money will follow.
Check sites like G2 and Capterra for customer reviews. Use the search functions to find out what people say about the features that are most important to your business.
Also, take advantage of sales calls and demos to explore the tool in more detail and ask any questions. If possible, involve a few employees in the testing process. Seeing how they interact with the tool will give you valuable insight into how intuitive it is and how likely your team is to adopt it.
Since getting employees to use new software consistently can be challenging, early involvement can help you gauge potential roadblocks and increase the chances of a successful rollout.
How to Improve Employee Adoption for Your Online Time Tracker
After completing the above steps, you should’ve found the perfect timekeeping software for your business. The next task is to get your staff on board. Signing contracts, paying fees, and setting up systems only to see your employees not use the software is a huge risk.
Here are some ways you can reduce that risk.
1. Onboard Employees
Clearly explain the benefits of timekeeping to your employees. These might overlap with the benefits for your business. But there are some unique ones, too.
Labor laws are designed to protect employees. Make it clear that automated time tracking will guarantee their breaks, eliminate unnecessary overtime (this isn’t necessarily a benefit — your mileage might vary), and make it easier to take time off. Reframing the benefits to focus on the needs of your employees is a fantastic way to get people on board.
You’ll need to do training, too. Don’t skimp on this. Any time or costs associated with this training far outweigh the time and money you’d spend if nobody used your new software. So, give employees a detailed walkthrough of the system with hands-on practice. Allow them to ask questions and voice their concerns, too.
2. Encourage Consistent Use
Set clear usage expectations with a timekeeping policy. A timekeeping policy is a set of guidelines that outlines how employees should track and report their work hours. It defines the tools and processes to be used, sets expectations for accuracy and timeliness, and ensures compliance with labor laws.
Make it crystal clear what employees’ labor rights are and what you expect of them. Don’t leave anything open to interpretation. Don’t underestimate the importance of a solid timekeeping policy. It’s the first step to getting people to use your new software.
Most timekeeping issues are caused by simple human error. The majority of employees aren’t trying to game the system. So the more people know what’s required of them for time tracking, the more likely they will do it error-free.
In addition, use reminders to keep everyone on track. Timekeeping tools often have a reminder feature so your employees don’t forget to track time. Also, lead by example. Make sure management uses the system properly. “Do what I say, not what I do” isn’t an effective way to get people to use a newly adopted software.
3. Listen to Feedback
It might take time to get 100% adoption of a new tool. Non-techy employees, for example, might feel uncomfortable with new software. So, be patient and flexible. Listen to and support your employees. Speak to them to find out if there’s anything too complicated or time-consuming. Reflect on their feedback and make the necessary changes to encourage adoption.
Adopt Online Time Tracking for Your Business With Timebutler
Timebutler makes it super easy for your business to switch to online time tracking and absence management.
You can manage overtime and vacations, manage leave, and stay compliant. Your employees can automatically or manually track their working hours on any device — no more messy time tracking. With Timebutler, you get accurate records that improve employee productivity and ensure your business doesn’t violate labor laws.
Start your Timebutler free trial today to make time tracking smoother and more accurate.
