Time tracking solutions should be considered just like the other tools we can’t operate profitably without. We can’t operate without vehicles and telephones, so we consider them overhead expenses we can’t avoid. For some of us, however, time tracking solutions seem like an expense we can avoid by just doing things the same way we always have.
Technology and the construction industry do have a complicated relationship. But, in modern construction, time tracking with technology is the norm among the most successful builders, contractors, and developers. In other words, time tracking solutions should be considered an overhead expense, not a luxury.
In the construction contracting industry, accurately tracking labor is among the greatest challenges. We can manage a crew ourselves, pay a job foreman to manage them for us or find a better way to track the time we pay for. The first two options are outdated and expensive, so many contractors are turning to a third, more user-friendly solution.
Traditionally, we invest in advertising, insurance, tools, and all of the other overhead expenses we incur without much debate. However, when we have the opportunity to save money on labor, we can be apprehensive to invest because we just don’t understand it.
Today we will discuss why time tracking solutions should be considered an overhead expense, just like building rent and fuel for the trucks. Time tracking solutions are one of the few investments we can make that actually offer a measurable return, so we owe it to ourselves to investigate the possibilities.
We will discuss why some contractors don’t see the value in time tracking solutions until it is too late, while others see the benefits early. We will discuss the various technologies used in modern time tracking solutions and why some applications may be better for some contractors than others.
What is Time Tracking Software, and Why Would I Want It?
Time tracking software solutions take much of the work, and errors, out of calculating labor costs. Instead of using a mechanical time clock to clock employees in, these solutions manage employee time using various technologies, including satellite tracking and artificial intelligence.
Some literally track the employees using a technique called geo-fencing, which uses the employee’s phone to track the user’s location. Some provide passcodes or fobs, and others provide kiosk and smartphone apps for ease of use. The most modern solutions use artificial intelligence to some degree and provide multiple ways to access the system.
Like utility and phone bills, the solution would become an overhead expense we could control. Better yet, it would resolve enough time tracking errors to literally pay for itself, using funds that would have otherwise gone undetected and wasted.
Why Should Time Tracking Solutions Be an Overhead Expense?
The most successful contractors have realized that accurate time keeping is the best way to manage expenses and profitability. We might scoff at spending a few hundred dollars on a time tracking solution, but might consider two workers consistently checking in late or time theft just a cost of doing business. Time is literally money, and uncontrolled costs accumulate.
Consider a crew arriving at a project at different times, each arriving ten minutes early to ten minutes late. However, the foreman is responsible for clocking everyone in, and they don’t want to penalize the early arrivals, so they clock the whole crew in ten minutes early. The extra time may not seem that significant until the end of the week when a surprise awaits the payroll department.
In this case, an easy-to-use time tracking solution would have tracked the actual time spent on a job, not rounded up or down to the next time increment.
Or, consider the same crew taking a 45-minute lunch instead of a 30-minute lunch without clocking in and out. If we’re paying the crew $175.00 per hour with an agreed-upon 30-minute lunch, we just lost $44.00.
If this goes on for a week, we’ll pay over $200.00 in labor we didn’t actually receive. The problem is worsened when “buddy punching” is done, where one employee clocks in two people, or a hand-scribbled time sheet is provided by the foreman on site, who themselves are probably tired and likely to make mistakes.
The solution then is to use a time tracking solution that is accurate, helps prevent fraud, and is robust enough to allow a single manager to manage the time of multiple employees. The obstacle some buyers encounter is the upfront capital investment or the paid training their employees will require to operate the system.
Currently, the most innovative time tracking solution for contractors is SmartBarrel. The Smart Barrel time tracking solution uses very simple kiosks for on-site time tracking and a user-friendly app for companies that prefer to have the foreman clock everyone in.
Take Back Control of Your Time Keeping
How Do Time Tracking Solutions Work?
Time tracking solutions use technology to better track employee whereabouts without needing a human supervisor. Some use the employee’s phone and employ a technique called geo-fencing, while others assign a key fob or passcode for each employee that they use at the physical time clock onsite.
The most advanced use facial recognition software and artificial intelligence to secure the system. For example, Smart Barrel provides a simple molded plastic kiosk you can hang virtually anywhere on the jobsite that has power.
The kiosk communicates with the system and/or with other kiosks and, using the power of artificial intelligence provides security using facial recognition. The user’s face is remembered from the first login, so simply walking up to the kiosk is all that is required. No passcodes to remember, fobs to replace, or buddy punching to be tolerated.
Time Tracking Solutions Are an Overhead Expense
Regardless of which time tracking solution a contractor uses, the investment should be considered an overhead expense, just like advertising and insurance. However, unlike advertising and insurance, time tracking solutions can actually pay for themselves.
If you could be guaranteed a certain number of new, qualified clients by investing in an advertising campaign, you could make an educated decision, right? You could do the math and determine that every dollar you spend in advertising will be returned to you in qualified clients, guaranteed.
However, advertising doesn’t work like that, and neither does insurance or many of the other overhead expenses we routinely approve every day. We don’t usually negotiate with the security guy or wonder if paying for public utilities is a good investment.
Fortunately, time tracking solutions work that way because they accurately record the actual time you are paying for. Buddy punching, malicious intent, or just sloppiness can cause a variety of timekeeping inconsistencies, which eventually cost your company money.
Accurate, Cost-Effective Time Tracking Solutions Are the Solution
When we calculate the cost of the materials for a project, we include all of the elements that will be an expense for the job. We calculate the materials as accurately as possible, keep consumables to a minimum, and stick to the plan we’ve designed.
However, because labor costs account for a large percentage of most jobs, accurately accounting for labor time is critical to profitability. In fact, small inaccuracies are amplified when the project is large, has many employees, and uses sloppy time-keeping methods.
The best time tracking solutions are designed to address the most important concerns potential users have, such as security, ease of use, and very high accuracy of reporting. The trick is to get the employees to reliably use the system, and a robust design that doesn’t break. Or, if a component does break it can be replaced in minutes, not hours.
Companies like SmartBarrel shine in this area because they keep it simple yet effective. The system is leased to the user, so no large capital investments are required. It also requires no expensive installation. Just find a spot near power, plug the kiosk in, and away you go.
To discuss how time tracking solutions can save your company time, effort, and money, just schedule an appointment with a pro. These pros will not only answer your questions, but they’ll even provide a demonstration free of charge. Just get your questions together and these pros will provide every answer you need, and maybe a couple you didn’t know to ask.
