How to Keep Track of Employee Hours: Ways Sorted by Pushback & Accuracy

How to keep track of employee hours… Oh, man.

Tracking employee hours isn’t the most glamorous part of running a business.

No business owner dreams about perfectly color-coded timesheets or an app that dings every time someone clocks in and out.

But here we are, diving into the world of employee time records and their breaks taken. Plus, there’s always that one person who “forgets” to fill in their timesheet and clock out.

Keeping track of employee hours is crucial, whether you’re managing a small in-house team or a large remote or hybrid team.

Why?

Because accurate time tracking doesn’t just ensure people get paid fairly and accurately—it keeps them happy, your business compliant (with all those pesky regulations), and stops your company’s accountant from quietly sobbing in the corner.

The good news is that time tracking doesn’t have to feel like a chore; there’s more to this than annoying spreadsheets. With the right tools and a few tricks, tracking hours can feel less like babysitting employees and more like empowering your team to take ownership of their time.

So, grab your shot of espresso (your fifth one for the day—no judgment), and let’s see how to keep tabs on employee work hours.

We’ll explore all the ways you can track employee hours, ranking them using key factors that suggest a time tracking method’s effectiveness and the likelihood of adoption.

Oh, and spoiler alert: one of the time tracking methods can actually make your employees forget they are tracking time. It’s awesome.

Let’s dive in.

Why time tracking is important

Time tracking is supposed to help your employees, which (in return) helps your business overall. At least, that’s how we at Memtime see it.

Time tracking is not about employee monitoring; it’s about encouraging employees to get the most out of their time for the common good of the business.

That being said, here are several reasons why time tracking contributes to the overall health of your employees and business:

And that’s all great; time tracking truly is important.

However, not all time tracking methods give the greatest results. That’s why you need to be careful with the method you choose for your team and business.

When evaluating different employee time tracking methods, there are several factors you need to take into account besides their effectiveness and the likelihood of adoption.

Factors to consider when choosing the best method to track your employees’ time

Some time tracking methods are almost as old as time (pun intended); some are more up-to-date, created to help modern-day teams navigate their hours and workload.

No matter which method you choose, you should consider the following factors:

• Pushback. This factor suggests how much employees accept or resist a time tracking method. Some indicators include employee feedback and willingness or resistance.
• Accuracy. This factor suggests the method's ability to provide precise and reliable data. There should be no errors in time data, and the data should be granular.
• Cost-effectiveness. You should be able to see the reduction in costs after implementing a time tracking method and the value it delivers. You can track initial investment, maintenance costs, scalability, and ROI.
• Privacy and ethical considerations. The time tracking method of your choice should respect employee privacy and comply with ethical standards. This means that there should be no invasive practices or vagueness about how data is tracked and used.
• Ease of implementation. A time tracking method should be easy to use and integrate into your employees’ workdays and existing programs. There should be a short setup and training time.
• Scalability. A good time tracking method adapts to different team sizes or organizational needs. It should be flexible enough to fit different business models and work environments.
• Productivity impact. A good time tracking method improves employee performance and morale. You should be able to see the correlation between time tracking data and productivity metrics (and even employee engagement).
• Real-time features or capabilities. With the right time tracking method, your employees should be able to provide current, relevant, and immediate data for urgent decision-making. The right time tracking system should have 99% uptime, with no hiccups in data collection or availability.

Now that you know what you should look for in a time tracking method, let’s go through the most popular ways to track employee time and attendance and rank them based on the previously mentioned factors.

We will score the factors on a scale of 1-5, with 1 being the least favorable and 5 being the most favorable.

Top 3 time tracking methods

Some methods on this list will make you chuckle, some will make you curious about them.

Either way, check out this list of 3 time tracking methods you can introduce to your business today.

Manual time tracking – 2.5/5

Manual time tracking requires your employees to record their hours by hand or with the help of basic methods and digital tools.

Some of the forms of manual time tracking are:

1. Filling out paper timesheets. Employees write down their start and end times for each task on paper each day, like “9 AM – 10:30 AM (client briefing)”.
2. Physical time cards. Physical time cards track the start and finish of each day and require employees to feed them into a mechanical time device to physically punch time entry holes in the card. 
3. Digital time cards. These are used the same way as physical time cards, but employees clock in and out from their desktops, laptops, or mobile devices.
4. Manual spreadsheet tracking (like in Excel or Google Sheets). Your employees have to enter their work hours into a spreadsheet, which is later compiled to calculate payroll.
5. Manual journal. Your employees can keep a physical diary (like a notebook) or a digital one (in Notes, Word, or Google Documents) and jot down the times they start and finish each task.
6. Using a clock-in/out system. Your employees can physically write their times on a sheet or digital register when they start and stop working on a task.

As you can see, manual time tracking requires A LOT of manual work. That’s why it didn’t get high scores when ranking it by factors.

Second, manual time tracking gets a bad rep because it’s prone to error. Employees forget to start and stop the timer; they tend to miscalculate hours or round them. And it’s understandable一with so much they have going on during their workdays, no wonder they don’t have the superhuman precision.

When it comes to this method being cost-effective, it usually doesn’t require any special software or system. However, it costs more when you calculate how much time employees have to spend correcting and managing errors, not to mention refocusing after each interruption.

Regarding privacy, manual time tracking typically doesn’t involve intrusive methods, making it relatively non-invasive. That being said, there could still be concerns around data privacy, as timesheets can be easily shared, copied, or mishandled.

Moreover, this method is easy to implement. There’s little to no training or setup involved, meaning you can introduce it to any workplace.

The biggest problem with this method is that it’s not scalable; it doesn’t improve productivity and there’s no real-time visibility into who’s working on what (or when).

Manual time tracking is difficult to scale. Managing dozens, hundreds, or thousands of employees using paper timesheets or even digital spreadsheets is wildly inefficient.

Additionally, most employees find it as a distraction or an unnecessary step, plus the time spent managing or correcting timesheets reduces overall productivity. Not to mention, manually tracking hours often means that data is entered days after, which means there’s no real-time capabilities and this method delays urgent decision-making. 

Overall impression

Manual timesheets nowadays don’t require using the old pen’n’paper technique, but are still far away from what seamless, streamlined time tracking can be.

I’d say, if you are running a small business, manual time tracking’s simplicity could be the solution for you. But if you are leading a startup or a team of freelancers and watch where every cent goes, please consider another method.

Semi-automated time tracking – 3/5

Semi-automated time tracking incorporates ways or systems where some aspects of the tracking process are automated and some are manual.

They require your employees to intervene manually but are a bit more accurate and efficient compared to manual time tracking techniques.

Here’s what is considered a semi-automated time tracking:

1. Using time tracking software but having to create manual entries. With this type of software, your employees need to enter their start and end times for tasks, and the app calculates the total hours worked, overtime, etc.
2. Timesheets with pre-populated data. Employees use software that pre-fills the time worked based on their schedule, but they need to verify and adjust hours before submitting timesheets.
3. Semi-automated time tracking software. Some apps track work hours but require employees to use start and stop timers, manually adjust the entries to avoid errors, and properly calculate breaks or overtime.
4. GPS time tracking. Location-based time tracking (like employees clocking in when they arrive at the office or out when they go home) sounds like a good solution, but they still need to track time spent on tasks manually.
5. Reminders for entering data manually. There are apps that send reminders to employees to log their hours, but the actual logging is done manually.

Semi-automated time tracking is definitely an improvement but if you ask us, it doesn’t really scratch the itch for several reasons.

Regarding pushback, you can expect to be some still, as your employees can find the process overwhelming, especially because manual adjustments are required. And sure一semi-automation is not much of a burden compared to fully manual time tracking一but it still has a learning curve and can be viewed as a time drain.

Semi-automated time tracking is big on reducing errors in calculations. However, there's still room for error if employees need to press the start/stop buttons on their timers and adjust input data. It is more accurate than the manual method but not 100% reliable.

Regarding cost-effectiveness, semi-automated tracking requires an investment in software or tools. Some would say they are more affordable than fully automated solutions. To that, we say: semi-automated solutions may have lower initial costs than fully automated ones, but the time employees spend adjusting manual entries can add up, leading to hidden expenses over time.

Semi-automated systems are generally privacy-friendly, and the risk of invasive data collection is low. Additionally, they are relatively easy to implement, especially if you’re transitioning from manual tracking. However, they require some training for employees to understand how to use the apps and handle manual inputs.

Moreover, semi-automated time tracking scales better than manual systems but less seamlessly than fully automated ones. As your company grows, you should consider moving to a fully automated solution.

Semi-automated apps improve productivity as there’s no manual calculations. However, they still require manual work and oversight, meaning they are not fully efficient. Additionally, some semi-automated systems offer real-time features like automatically logging hours once an employee clocks in. However, employees are still asked to review and adjust the data manually.

Overall impression

Semi-automated time tracking is the middle ground; it’s not as annoying as manual tracking but not as superior as fully automated one. If you are running an SMB and are not looking to scale it, this method might be a good idea.

Fully automated time tracking – 4.4/5

Fully automated time tracking involves apps and programs that track employees’ work hours with no manual input. The fully automated apps are highly efficient, especially for larger businesses and remote teams.

Here are some forms of fully automated time tracking:

1. Biometric time clocks. With such programs, your employees can clock in/out using their biometric data like fingerprints and facial recognition. The app will automatically record and process hours worked.
2. Geofencing. This technique works for employees who enter or leave a work area (an office or a construction site).
3. A fully automated time tracking software, like Memtime. Such an app tracks everything your employees do on their devices, like time spent on specific tasks, apps, or documents, without them manually starting or stopping the timer. Usually, these apps can be connected with project management software to log time spent on tasks automatically.
4. AI time tracking software. AI tools work similarly to regular automated time tracking software but can come with additional perks like predicting project timelines based on historical data and measuring collaboration efficiency by analyzing emails and chats.
5. Cloud-based time tracking. The perk of these systems is that they automatically sync time data across devices, ensuring accurate tracking regardless of how many  devices employees use.

As you can see, fully automated time tracking platforms come in all shapes and sizes, providing the most seamless solution.

Now, let’s go through the factors and specifications of this time tracking method.

When it comes to fully automated time tracking, employees may push back against it as they fear surveillance and using a Big Brother-inspired app. From our experience, if you are transparent about how their data is collected and how private the tool you are trying to introduce is, there should be no problem with product adoption.

Fully automated systems are highly accurate, there’s no room for employee error or a miss in calculations. They also provide precise reporting.

Now, cost-effectiveness is always the talk of the town when fully automated tools are mentioned. Depending on the tool, upfront costs can be higher, but long-term savings in cutting admin time make the initial investment worth it. 

Regarding privacy and ethics, we must say it depends on the tool. Your employees can feel uncomfortable being monitored, especially with GPS tracking or AI-powered systems. That’s why we suggest you find a trustworthy tool that’s not focused on AI tracking but on automated activity tracking.

When it comes to software implementation, it, again, depends on the tool. Some systems require extensive technical setup and training; some don’t. Luckily for you, there’s a large pool of tools so that you can choose the more straightforward one.

Scalability, product impact, and real-time features all got 5/5 scores because fully automated tools are designed to grow with your team, improve your employees' focus and productivity, and allow you to monitor your team's productivity instantly (according to best ethical practices!) and make faster decisions.

Overall impression

Fully automated time tracking offers accuracy, scalability, and real-time features, which make it an excellent choice for businesses of all sizes, especially remote and hybrid teams. That being said, some tools can be pretty expensive and have a learning curve, without being so privacy-oriented. So, it’s your job to choose the tool wisely to minimize pushback from your employees.

Which method will you choose?

Now that you know all the benefits and downsides of each time tracking method, which one seems like a logical option for your business?

Before you answer, let me just一oh, so briefly一introduce you to one tool.

Fully automated. Almost no learning curve (you don’t even need a tutorial to learn to navigate it). For just $18 per user per month billed biennially if you have a team that uses project management software.

I’m talking about Memtime.

Memtime is created to give your employees answers on how they spend their time.

Memtime = memorize + time

Memtime helps the fog of any workday dissolve, giving your employees clarity and insight for a more productive day. If Memtime were a song, it’d be "I Can See Clearly Now" by Jimmy Cliff. 🎶

With Memtime, the obstacles of guesswork, missed hours, and general inefficiency are gone, leaving for your employees a smooth path ahead.

But enough with how great the app is. Here’s how Memtime works:

• It captures all your desktop activity automatically, no matter if you work on Windows, macOS, and Linux; it tracks your time in browsers and offline apps.
• It remembers everything you did and for how long, and displays your days in 1-60 minute intervals, tracking even the shortest activities.
• Looking at your captured activities, you can create time entries and export them to a project management tool or log them under Memtime Projects if you don’t use such software.

And Memtime’s big on privacy.

With our tool, your employees’ data is stored securely offline, visible only to them, NOT YOU. Their time tracking information is private and under their control. Non-invasive technology. No violation of your employee rights or workplace ethics.

They can even edit their captured activity log by deleting any particular activity or reminding Memtime not to record such activity. I bet your employees would like that. 😉

Memtime is developed to encourage employee accountability, ensuring they feel safe due to their data remaining  locally stored. There’s no external access. So if you want to know how they organize their workdays, you can ask them to download productivity reports and email them to you.

If Memtime is up your alley, sign up for our two-week free trial, without having to type in your credit card details.

And if you end up liking the app and want your team to try it, book a 15-minute demo with us. We’ll run a custom live onboarding for your team. At the end of the trial, we’ll talk again to answer any questions and hear your team’s valuable feedback and results.

Then, you can choose a Memtime package that best suits your business needs and continue tracking time.

Wrapping up

Tracking employee hours isn’t the most enjoyable business activity, but it’s important; someone’s gotta keep the show on the road. You have the obligation to ensure paychecks are accurate and project deadlines are met.

Time tracking matters but sometimes it can feel like you’re trying to measure a marathon track with a ruler.

To avoid this feeling, use a fully automated system like Memtime.

Memtime doesn’t just track hours; it also respects privacy.

Employees can work without feeling like Big Brother is watching, while you get the insights needed to keep the business running. It’s like having a personal assistant who’s never late, always accurate, and never steals your lunch from the office fridge.

So, whether your team is in the office, remote, or hybrid, Memtime can turn tracking hours from chore to charm. Give Memtime’s free trial a go—your team (and probably your accountant) will thank you.