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Time Tracking and Payroll:  Techniques, Strategies and Benefits

When it comes to employees, two of the most important, yet often overlooked and confusing areas for businesses of all sizes are time tracking and payroll. Whether you are an SME (Small Business Enterprise) or a larger enterprise, these two areas require great accuracy, consistency and diligence, as governing tax authorities and other regulatory entities require ultimate compliance and accuracy.

For business owners, identifying the most effective strategies and specifically the most suitable technology to properly and accurately manage time tracking and payroll is key.

In this article, we’ll discuss the merits, benefits and relevant issues to consider and the best strategies to ensure that time tracking and payroll go hand in hand and are both produced accurately and efficiently.

Time tracking

Time tracking is defined as the process of recording and logging the hours that employees have worked over a given period of time.

The purpose of time tracking is to accurately reflect wages due to employees in terms of hourly pay, bonuses or any other compensation. It also ensures that employees are accurately remunerated for any overtime, piece-rates and night shifts, in turn protecting the business from any related litigation.

Features of Time Tracking

Time tracking is a major component of payroll and human resource (HR) management and is used to accurately monitor employee performance, from their number of hours worked, to the absence and any sick leave. Here are some of the key features of time tracking systems:

• Accurate visibility of employee attendance and hours worked

• Integration with various payroll models and systems

• Automated payroll calculations

• Ability to track project hours and overtime for any jobs

• Alerts for any schedule deviations

• Reduction in potential payroll discrepancies or inaccuracies.

Automated Time Tracking Solutions

The most effective way of implementing time tracking is through automated solutions. Automating the process eliminates manual effort, errors and mistakes and ensures consistent accuracy, with all data records stored electronically, making it easier to access, analyse and verify.

The use of automation not only saves valuable time and money but it also increases the visibility and accuracy of time tracking processes, with some of the features of automation including:

• Automated data collection

• Self-service for employees

• Automated notification of any late arrivals/absences

• Easy to use and intuitive user interface

• Optimised access to data, helping streamline payroll processes

• Automated reporting capabilities

• Real-time tracking data

Common Issues with Time Tracking

Despite its obvious benefits and the accuracy and speed of automation, there are some pitfalls that should be avoided.

The most common issues faced with time tracking are:

• Poor quality tracking – inaccurate data, human error and subjectivity

• Low data protection – lack of security measures or insecure data storage

• Lack of interoperability – data incompatibility with other systems

• Poor customer service – inadequate customer service or lack of user support

• Costly implementation – any purchase, installation or maintenance costs.

Strategies for Effective Time Tracking

To ensure that businesses of all sizes and industries reap the rewards of effective time tracking and payroll, there are some strategies and tactics that should be considered before any system is implemented.

A checklist for Time Tracking and Payroll:

• Determine your specific requirements – assess your specific requirements from attendance tracking to tax related requirements

• Review your current and future needs – analyse what is needed now and in the future, understanding your likely long-term resource requirements and capabilities

• Compare and research suitable products – consider what your business can reasonably afford and then research a range of potential systems

• Analyse delivery and support options – bear in mind any potential installation, maintenance and ongoing technical support needs

• Understand relevant data protection, privacy and compliance regulations – make sure you research state and local data protection regulations and other pertinent compliance directives.


Q: What is time tracking?

A: Time tracking is the process of recording and logging the hours worked by an employee over a given period of time, which is then used to accurately determine wages and other compensation due to the employee.

Q: How can I ensure that time tracking and payroll is managed efficiently and accurately?

A: By identifying the most suitable technology for your business and automating the process for maximum accuracy, in addition to keeping up to date with any relevant data protection, privacy and compliance regulations.

Q: What are the benefits of using automated time tracking?

A: Automated time tracking reduces the time and cost of manual effort, provides accurate data collection and reporting capabilities, improves visibility of employee attendance and hours worked, integrated with various payroll models and systems, and alerts for any schedule deviations.


Time tracking and payroll are two of the most important, yet most complex and often overlooked areas of any business. By ensuring that the correct strategy and suitable technology is identified and implemented, businesses of all sizes can ensure that accurate information is gathered and stored to protect against any potential litigation.

The use of automated solutions is the most effective way of implementing time tracking and payroll, eliminating any manual effort and ensuring accurate data. As with any process, it is also important to remain knowledgeable of any relevant data protection regulations and laws to ensure ultimate compliance.

By following these key strategies and keeping abreast of potential pitfalls, businesses can ensure that time tracking and payroll are managed efficiently, accurately and consistently.

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