2.5 THE SKILLS YOU NEED TO BE A GREAT BOSS: Accounting for Time

(EXTRACTION FROM TEAM MANAGEMENT: Improving Team Effectiveness at http://www.mindtools.com)

 

People’s time costs money.  Employers need to know that their people are at work for the right hours.  They also need to know what their people are working on when they're there.  The few methods of monitoring are:

·        clock in and out

·        fill in timesheets

·        allocate the proportion of the time spent on each project to different project codes

There is a need to have an appropriate time recording system in place.

 

BENEFITS OF ACCOUNTING FOR TIME
For Payroll	·        most basic form ·        using a time card to "clock in" on a machine ·        machine records the hours worked ·        the practice can protect both employees and their supervisors ·        the system will immediately pick up on any overtime payments
For Invoicing	·        need to track and account for time accurately ·        to invoice their clients correctly
To Identify Productivity	·        record how productive each person is ·        measuring the proportion of each day spend on chargeable work ·        relates to when work is sold to the client at a fixed price ·        time recording reveals people's productivity levels ·        allows the firm to analyze how accurate their estimating process is
To Understand Internal Costs	·        need to know what different activities cost ·        applies both to project-based work, and to "business as usual" activities ·        helps organizations identify proportion of the overheads costs and proportion of operational, and how this changes over time ·        can calculate the full cost ·        gives a more accurate picture of efficiency ·        allows you to identify trends ·        better  able to understand and manage your business

 

TYPES OF TIMEKEEPING SYSTEMS
Card clocking	·        Traditional time clocks ·        use punch cards ·        Today it’s electronic and can be tracked very accurately o   portable systems o   biometric devices
Time sheets	·        use to track items like attendance, break time, project time, and billable hours ·        helps evaluate time by worker, task, project, and client ·        very customizable, and can be tailored to meet the exact needs
Computer-based time recording	·        can track hours per project, distinguish between billable and non-billable tasks, manage absences, calculate overtime, and print reports automatically

 

Some organizations have no choice but to use a timekeeping system.  It’s important for timekeeping to outweigh the costs.  Make sure you know why you want to track it, how you'll use the information, and whether the analysis will lead to changes and improvements.