In today’s fast-paced and evolving work environment, time tracking has become a crucial aspect of workforce management. It plays a pivotal role in ensuring efficiency, transparency, and accountability in the workplace. However, despite the advent of advanced technologies, a significant portion of organizations still rely on outdated manual time tracking systems. This article explores the impact of automation on time tracking through time tracking statistics and reveals how it can benefit both employers and employees.
Key takeaways:
- Outdated systems hurt accuracy and compliance: Many U.S. companies still rely on manual data entry and spreadsheets, which increases the chance for mistakes and non-compliance.
- Automation increases productivity levels.
- Different working styles like remote, hybrid, or on-site require flexible time tracking solutions.
Time Tracking Statistics
Here are the most interesting time management statistics. Take a look at them to get a picture of the US time tracking landscape. Does your company use time tracking to keep tabs on employee work hours and productivity? Maybe it’s time to consider it.
1. Over 1/3 of time tracking systems are outdated
According to this collected data, over 1/3 of time tracking systems are outdated. In the United States, a startling 38% of companies still use paper timesheets and punch cards for employee attendance tracking. The situation is even more pronounced in Canada, where a staggering 58% of businesses rely on these archaic methods.
2. Manual data input and data adjustments consume time
Approximately 38% of US employees continue to use paper timesheets and punch cards, leading to a significant drain on productivity. Deloitte reports that 50% of professionals who lack automated time tracking systems find manual data input and data adjustments to be the most time-consuming aspects of the process.
3. Inefficient systems lead to corrections
An alarming 80% of companies that still utilize paper time tracking systems report that they need to correct a staggering 80% of timesheets they receive. This inefficiency can be a costly burden on both time and resources.
4. Working from home levels have stabilized
Recently, it seems as if companies are split down the middle in terms or remote, working from home, and in-office schedules. However, a 2025 research conducted by Standford, finds that working from home levels have stabilized since 2023. The study further details that English-speaking countries have the highest level of WFH with 1.5 to 2 days a week. Whereas, workers in Asia are offered 0.5 to 1 day of WFH per week.
5. Time tracking and productivity
Time tracking data reveals that the US economy loses a staggering 50 million hours of productivity per day due to unrecorded work activities. Activities such as unrecorded emailing alone can cost professionals up to $50,000 annually. This time tracking report highlights importance of accurate recordkeeping and the need to centralize and automate time tracking tasks.
6. The impact of automation on businesses
Automation in time tracking offers numerous benefits to businesses. Up to 93% of US employees report that their paychecks are always delivered on time, thanks to business and productivity tools such as time tracking. Moreover, 31% of businesses have reported a positive increase in their ROI within just six months of implementing automated time tracking systems.
7. Curbing time theft
Time theft and buddy punching affects a significant amount of businesses. Implementing time tracking software can save organizations considerable resources – saving companies more than $22,000 annually. Additionally, utilizing time clock tools with geofencing clock-in can ensure your employees are in their designated sites at the time of clock-in/out to prevent time theft. Choosing the right software can enhance your team’s time tracking productivity, increase timesheet accuracy, and save your company money by preventing time theft.
8. Satisfied with automation
The adoption of automation is met with satisfaction in the corporate world. A notable 73% of organizations express high levels of satisfaction with the returns they gain from automating their business tools and processes. A good time log for employees with automation often comes with more benefits than just satisfaction. It also implies increased efficiency and a reduced workload for your HR team.
9. Unlocking productivity gains
The potential for increased productivity is significant. More than half of companies report payroll penalties in the last 5 years – clean, automated time data reduces downstream errors and compliance risk. This means your team can gain back their time to focus on more strategic tasks, save money, and provide more accurate time sheets to process payroll. This truly allows your team to unlock untapped productivity gains.
10. Employee tracking concerns
Interestingly, despite concerns about employer tracking, a large number of workers admit to using apps such as Google that already track their location. This highlights the need for open and clear communication, education, and transparency between employers and employees regarding tracking policies
11. Factorial Time Tracking features saves companies time and money
Repetitive HR tasks like sending email reminders to employees to fill out their time sheets or requesting and approving PTO manually via email takes up dozens of hours per employee a month. These manual tasks add up to hours of wasted time per week, ultimately, costing your company a considerable amount of money. By implementing a time-tracking software and HR leave management system, you can streamline these processes. The benefits include reducing administrative work, cutting down on manual tasks, and ultimately saving both time and money.
The time management statistics presented here emphasize the critical importance of modernizing time tracking systems in the workplace. Automation not only improves efficiency but also enhances transparency, eliminates time theft, and results in significant cost savings. As the workforce continues to evolve and adapt to new working conditions, investing in automated time tracking systems becomes increasingly essential for businesses to thrive in this dynamic environment.
What time tracking statistics show us
Time tracking software is invaluable just based on the sheer amount of time it can help you save by automating your HR processes. These tasks are necessary to making sure your company functions according to rules and regulations. However, they take up a lot of time that can be spent focusing on employee well-being, productivity and strategic decision-making instead.
What are these HR tasks and how can they be automated?
HR software with time tracking features like Factorial must include time tracking, shift management, and leave management features in order to cover the basic time tracking needs of your company. Let’s take a quick look at these tools.
Time tracking features
Factorial provides all employees with an easy-to-access platform. Employees gain access to a dashboard that shows the time they have worked that day after clocking in, as well as a weekly and monthly view of their hours worked.
Clock in features
Employees can clock in from the platform or even their phone via the mobile app. Managers receive optional notifications via email or mobile app of clock in and clock out activity. Using the clock in and time tracking features allows employees to fill their timesheets automatically.
Managing time off requests
Factorial gives employees the power to submit their time off requests automatically through the platform, and managers the freedom to approve or deny these requests with a few simple clicks. Accumulated PTO is easy to assess via the separate tracking screens.
Shift scheduling features
Shift schedules are easy to create thanks to Factorial’s time tracking features, PTO tracking featues, and pre-set employee work schedule policies. Taking into account the amount of hours employees are required to work, upcoming holidays and requested days off, scheduling becomes a breeze.
Calendar view
Factorial makes it even easier to see who in your team is working and when they have upcoming scheduled leave days. Just switch to the calendar view to see and plan your workload and employee schedule accordingly.
If these statistics peaked your interest and you want to explore time tracking options, Factorial offers a 7-day free trial and even offers a free demo call.
