Project management time-tracking toolsare becomingincreasingly popularin organizations working in all manner of industries. In fact, the project management software market isset to reach $9.81 billion by 2026.
But why is project management time tracking so important andhow can Factorial help?
In today’s product spotlight post, we are going to discusswhy accurate project time tracking is essentialand howusing the right time-tracking toolscan have ahuge impact on the profitability of your projects.
We are also going to take a deep dive intoFactorial’s new project management-specific features. We will explain what they are and why we are so excited about them. More importantly, we will explain how these features can help you better manage your projects and drive business growth.
Whether you’re an existing user of Factorial’s comprehensive HRIS, or you’re still shopping around, this post will help you understandwhat you should be looking for when you invest in technology for project management time tracking.
Table of Contents
Table of Contents
What is project time tracking?
Project managers have to keep track of a lot of information. They need to make sure thatbusiness processes are running smoothly,activities are synchronized,deadlines are being met, and team members arehitting performing expectations and being paid correctly. All this takes a great deal of skill, especially in terms of attention to detail and the ability to multitask. And it can be incredibly challenging without the right tools.
So, what isproject time trackingand how does it tie in with all this?
Project management time tracking is the practice of monitoring the time spent on a project. Essentially, it’s about keeping track ofhow long project team members take to complete their assigned tasks. That way, you can make sure thattime is being used productively, expense budgets aren’t being exceeded, employees are being paid the right amount, and your project is generating anticipated levels of profitability. Project time tracking also helps youallocate resources effectivelyand avoidscope creep, which can be costly and negatively impact your company’s reputation.
Ultimately, project time-tracking helps youkeep your finances under controland gainbetter insights into the way you are using your most important resources: your people. And this is crucial for your ongoing projects. It’s also vital for the success of any projects you might launch in the future.
Why use project management time-tracking tools?
Project management is an important element of running a business. So much so that89% of organizations now have at least one project management office. However, effective project management can be tricky. For one thing, you need goodproject management time tracking skills. You also need to be able toevaluate performance and make adjustments where necessary. Plus, you need financial experience so that you can effectivelymanage expenses and calculate profitability. The slightest mistake can have a big impact on the success of your projects.
Most businesses find thatthe best way to ensure that their projects run smoothly is by investing in project management time-tracking tools. The right solution can help you keep on top of project time tracking and improve your business processes. As a result, you canmaximize productivity, profitability, and growth.
Let’s take a look at some of thebenefits of using project management time-tracking toolsin a bit more detail.
Compensate hourly employees correctly
Employee time trackingmakes it much easier to keep track of how many hours each employee is dedicating to each project that they are involved in. You can createdetailed timesheets for each employeeand monitor how many hours they have worked in any given time period. You can also keep track of anytime and a halfthat you might owe if an employee dedicates more time to a project than their contracted hours.
All this makes it much easier toprocess payrollandensure that all employees are compensated as they should be. Moreover, using project management time tracking tools ismuch faster and more accuratethan maintaining manual timesheets that are at risk of human error. Thissaves timefor your managers andcuts your payroll costsconsiderably. You also get more insights intohow your resources are being allocated.
Calculate profitability per project
Project management time tracking makes it much easier for you tocalculate the profitability of all your projects. You can generate reports detailing how many hours employees have spent on different activities so that you cancompare time and cost with billed revenue. You can then determinewhich projects are making you the most money and which might not be so profitable.
Ultimately, time tracking for project management helps you makebetter business decisions, both for your company and your employees. You can find out if you are charging your clients enough and if youhave the right profit margins relative to your business costs. For example, multiplying your time tracking data by your hourly expenses can help you calculatehow much each project is costing you. You can also identifyhow much time your workforce is investing in each projectand then use this data toadjust future project estimates.
Better manage expenses
Underestimating the time required to finish a project causes you tomiss client deadlines. However, it also has an impact on yourproject expenses. For one thing, you have topay employees for the extra timecompared to your original budget. Plus, you might incurlate fees from your clientsfor failing to deliver on time. Not to mention thenegative impactdelivering late can have on yourcompany’s reputation.
That’s whytime and expense trackingis so important.
In order to calculaterealistic deadlines, you need access toaccurate project time tracking data. You need to understand how long each activity takes so that you can provide your clients withdeadlines that you can stick to. After all, you take your expenses into account when you define your prices. Therefore, if you consistently go over budget, then you will beeating into your revenue.
Evaluate performance accurately
Finally, project management time tracking tools can help you evaluateindividual and team performance for each projectthat your business takes on.
Why is this so important?
For one thing, access to project time tracking data can help youidentify high performers. You can see who is going the extra mile and exceeding performance expectations. This can be valuable information that you can use inperformance appraisals, salary reviews, and succession planning.
Secondly, and arguably most importantly, the data you collect from your project management time tracking tools can help you uncovervaluable patterns and insightsrelating to your projects and your teams.
- How much time teams devote to specific project activities.
- Patterns that help you identify strengths and weaknesses so that you can help low performers work more efficiently.
- Real-time insights into team schedules to help you better plan your project workflows.
- Behavior trends, including how long it takes certain employees to complete tasks, and whether there is an issue with procrastination.
How Factorial’s project time tracking tools work
AlthoughFactorialalready offersproject management and time tracking toolsas part of its HRIS, there have been somerecent updates and new features. In fact,these project management time-tracking features are being launched today!
Our new and improved time-tracking project management software features, available through all new Enterprise plans, will help you:
- Manage your projects more efficiently and accurately.
- Improve the project management experience by adding more flexibility to the creation process.
- Assign specific employees to specific projects.
- Create reports with project total hours.
- Create new permissions for different user groups.
Let’s take a look at these new features in a bit more detail. That way, you can see how they can help you better manage your projects.
Streamlined project management process
With our new features, time tracking for project management has never been easier. You can nowcreate, edit and change project statuses directly from the main Projects page. Plus, you can also easily access and filter alist of all projects created within the companyfrom this page. You can seeproject names,employees assigned to each project,inputted hours(per employee and per project), andproject statuses(active or closed). And if you need to make any changes, you can alsoedit and delete projectsat the click of a button.
All this makes it much easier tostreamline the entire project management process.
Employee assignment tools
You can now assign employees to specific projects. Simply click “Assign Employees” when you create a new project, and you can easily add whoever you want from thepop-up listthat appears. Moreover,employees are only able to track the projects that you or your managers assign to them, so there is no risk of confusion.
Every project created through Factorial’s features for project management time tracking is clearly listed on the Projects page. You can also seehow many hours employees have dedicated to assigned projects. You can easily track how many hours each employee has inputted, and clearly see who is (or isn’t)achieving their performance objectives.
Not only that, butemployees can keep track of their own hoursthrough theemployee portal, helping them stay on schedule. They can record the hours they work every day, and the platform then generatesaccurate timesheetsandsends them to their managers for approval.
All this makes it much easier to processpayroll dataandcalculate project expenses and profitability.
Factorial’s project management time tracking tools now also include a feature forexporting detailed reports for all your projects. Simply export the project and select the file format and data range that you want. You will receive an email once the report is ready. You can then download your report straight from the Documents section.Reports include project names, statuses, and inputted hours for each employee working on a project.
Project management permissions
Finally, our new features for project management time tracking enable you toassign project management permissions. Managers can edit and create their own projects, configure separate permissions for each project, andcreate new permissions for different user groups. They can also add projects to shiftswithout needing shift edit permissions. Just activate permissions for the group of users that you want.
Time and people management made simple
Ultimately, a successful project meets its objectives within the established timeframe and budget. The closer you are able to stick toproject deadlines and expense forecasts, the happier your clients will be and the more profit you will generate for your business.
The key to all this ismaintaining control over your time and expenses. With the right tools forproject management time trackingsuch as the new and improved features that we have launched today, you can createstreamlined and efficient project management workflowsthat help your business grow and develop.
This post is also available in: English UK