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Based on reports by the US Bureau of Labor, almost 12 million people were employed in the construction industry in 2022. No matter how big your team is, tracking time accurately and efficiently is crucial—and can be challenging when done manually. 

While some construction business owners question whether automated time tracking is really worth the time and investment required to integrate, there are several key reasons why your company should highly consider adopting a dedicated construction time tracking software. 

Automating Time Tracking for Construction Can Save You Time, and Money  

 The most basic expectations in payroll are accuracy and efficiency. However, manually collecting, entering, organizing, and processing payroll is time-consuming and stressful. These factors can cause major problems, as highlighted by a GNSA report that revealed manual payroll entry accounts for 35% of payroll errors. 

In addition, using traditional construction time clocks and time cards can make it harder to track issues like time fraud. For example: buddy punching” costs US businesses hundreds of millions of dollars in payroll expenses per year. Automating time tracking for construction can help encourage compliance. 

Data entry errors can also put an entire organization at risk, according to Cybersecurity statistics. reports that a cyber attack happens every 39 seconds on average, with crime-related data breaches costing US businesses an average of $9.44M.  

While it’s understandable that some business owners remain skeptical about injecting more technology into their daily processes, adaptation is one of the key factors to lasting success–and technology is paving the way for better efficiency and security. 

The relationship between construction and technology  

Construction and technology go hand-in-hand. As new inventions hit the market, this industry looks for ways to transform it into brick and mortar value. From Augmented Reality (AR) that generates virtual designs in real environments, to software that lowers manual admin labor by 70% (in some cases)–construction has one foot in the digital world and shows no sign of slowing down. 

Check out this article to learn about some exciting hardware and software helping construction companies of every size maximize productivity and get ahead of the competition. 

The Benefits of Digitized Construction Timesheets 

Digitizing construction timesheet entry and time punching makes it easy to track every team (regardless of their job site), and turns hours of manual data entry into just a few seconds of work. Here are four reasons to use construction time tracking software instead of traditional time sheets and construction punch clocks. 

Increases efficiency 

The first and most apparent benefit of payroll software is how much time it saves. A survey by Bloomberg Tax reported that (of those participating in the survey) manual payroll takes the average HR manager 21 days per year (5 hours a week.) When companies eliminate manual payroll processes, it gives HR (and often the business owner themself) more time to focus on other high-priority tasks. 

Improves accuracy 

Payroll impacts every person, at every level, in a construction company. Using automated payroll software can drastically help lower errors that cost your business and employees money. It also makes record-keeping more organized, so staying compliant is much easier. 

Improves field and back-office communication 

Using one platform, with one standard procedure, makes it much easier to keep everyone on the same page. As everyone signs into the same time tracking system, it’s easier for HR and field project managers to monitor and address discrepancies, and catch issues before they end up in (or out) of a paycheck. 

Improves visibility into labor and project costs 

It’s easy for work days to fly by, but time tracking software offers more features than just punch cards and automated payroll. The right software can help your organization scope out where time (and money) is being spent using tools and features that help you categorize projects, maintain updated employee info, and more. 

3 Key Features to Look for in Time Tracking Software 

Not all payroll software is created equal. With such a saturated market of technology to research, here are three important features to look for when choosing software for your construction time tracking needs. 

Feature 1: Is it designed for the construction industry? 

Tracking payroll in the construction industry is a unique task thanks to the stringent guidelines for compliance, and making sure employee time is lining up with the accurate project they’re working on. Workers in the construction industry require certifications to make sure employees on the job are in compliance.  

It’s important to look into software that is designed specifically for these use cases that make construction such a dynamic and challenging industry. 

Feature 2: Does it integrate with your current software stack? 

If you’ve been in business awhile, you’ll likely have a pre-existing Enterprise Resource Planning (ERP) software like Sage or Spectrum. To avoid bottlenecks in productivity, look for time tracking software that integrates with your current software stack.  

Not only will this make implementation easier, but it can actually create a more collaborative and efficient workflow because it helps eliminate information silos. 

Feature 3: Is it user-friendly, and does it offer a trial period? 

This may seem like a no-brainer, but what may work for one company may not work for another. Trying to learn and implement a new system that impacts every single member of a company is challenging on its own, but if the software ends up being overly-complex or uses a frustrating user interface (UI), it can cause even more resistance.  

While investing resources into training staff on the new processes is non-negotiable, it’s also important to look for software that offers demos or trial periods so you can find out quickly if this tool is right for your team. 

Is Time Tracking Software Really Affordable? 

If you are feeling tempted to stick with manual entry because it's all you’ve ever known— you’re not alone. A report by Clutch revealed that 25% of small businesses still use old-fashioned pen and paper to track finances. 

However, as this article also revealed, there are many hidden costs and consequences to leaving time tracking strictly to humans. From security risks, to inaccurate pay checks that can cause unnecessary conflict with great employees (49% of US workers will leave a company after two paycheck issue experiences, according to 2021 insight from ASAP Payroll Service), your team deserves more than what traditional data entry can offer.   

No matter the size of your construction company, it’s never too late (or too early) to make improvements to payroll management processes.  

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