How to track employee time: options, tips & tools

How you track employee hours can significantly impact your workplace culture and your organization’s bottom line. Done right, time-tracking tools can mean the difference between running a sustainable business and struggling to stay profitable.

However, not all time-tracking systems are created equal. A thoughtful, user-friendly approach to time tracking can help your organization act strategically, allocate resources fairly, and charge clients accurately. On the other hand, overly intrusive solutions risk damaging team morale and exposing your company to risks related to labor, privacy, or data protection laws.

With 85% of HR leaders facing pressure to consolidate tech stacks,* finding a comprehensive time-tracking solution is more critical than ever. The challenge lies in identifying a tool that not only meets your organization’s needs and budget but also supports a people-first approach. After all, effective time tracking isn’t just about numbers — it’s about fostering a balanced, productive workplace.

This guide explains how to track employee hours and discusses the impact that quality time-tracking apps can have. We’ll also briefly introduce top time-tracking platforms.

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*Leapsome’s Workforce Trends Report, 2024
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Why is tracking employee time important for modern, people-centered organizations?

A robust time-tracking system does more than monitor hours — it can support organizational growth and employee well-being. Here’s how:
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Supporting work-life balance

According to our 2024 Workforce Trends Report, workloads have increased for 71% of managers and 63% of individual contributors (ICs) over the past year. More alarming trends include that over half of the managers and ICs we surveyed reported deteriorated well-being, and 34% of the ICs said they wanted to quit their jobs. These statistics paint a troubling picture of workplace burnout.

Accurate time tracking can help managers identify overwork early. For example, if an employee frequently logs 12-hour days, it’s a clear sign they need support.

With this data, managers can adjust workloads, better allocate resources, and hire when necessary — promoting a better work-life balance.
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Boosting payroll accuracy

Accurate time records are essential for one of the most critical HR processes: running payroll, especially for hourly workers.

Modern time-tracking systems help eliminate errors, ensuring employees are compensated accurately and on time.
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Supporting compliance

Most US states and many European countries have labor laws that govern overtime pay and break requirements.

For instance, the United States Fair Labor Standards Act (FLSA) requires businesses to provide time-and-a-half pay for non-exempt employees who work more than 40 hours in a single workweek. To comply with this requirement, the FLSA mandates that companies maintain accurate time-tracking records for their hourly employees. 

Similarly, tracking team members’ working hours supports compliance with the European Union’s Working Time Directive (WTD), which enforces standardized rules on working hours, breaks, and overtime.

Adopting robust time-tracking practices can help organizations adhere to these legal requirements.
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Generating project management insights

Estimating the time it takes to complete different tasks can be challenging. Some require two hours, while others may span two full working days. Time-tracking tools help HR professionals and managers collect accurate data about work hours, enabling better planning and resource allocation.

And when organizations are equipped with this data, it also helps with fair, sustainable pricing. For example, a project manager may notice one team working unusually long hours for a single client. They could then use that information to discuss a higher recurring retainer price.
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five ways to track employee time: finding the best option for you

Time tracking is crucial for compliance, resource allocation, and operational efficiency. But with various methods and tools available, it’s essential to choose what aligns with your organization’s needs.

With that in mind, let’s review five popular time-tracking approaches.

 1. HRIS software with time-tracking capabilities

Comprehensive human resources information systems (HRIS) centralize a wide range of HR processes, such as time tracking, absence management, and payroll. This integration makes HRIS platforms ideal for companies seeking to streamline operations and reduce the complexity (and costs) of managing multiple tools.

In addition, holistic HR platforms like Leapsome are designed with the employee experience in mind. They make it simple for team members to log their hours, request time off, find information, update their personal data, and revise internal updates.

The focus on ease of use is particularly valuable for time tracking, where frequent employee input is necessary. Just think about all the time saved and the reduced stress when missed time entries, punch-ins, and other common tracking issues are no longer part of your work life.
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Pros

• Consolidates time tracking and other HR tasks in one system
• Scales to meet the needs of growing organizations
  Seamlessly integrates with payroll and absence management (depending on the provider)
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Cons

• May be more expensive than a standalone time-tracking tool
• Smaller organizations may not need the full range of features
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Best use case 

An HRIS with time-tracking capabilities is an excellent option for any organization looking to streamline its tech stack and reduce its People team’s workload (allowing the company to do more with less). 

😍 Time tracking and core HR functions in one intuitive space

Leapsome’s comprehensive HRIS can help your team track time and reduce your spend on other HR tools.

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2. Standalone time-tracking tools

Standalone time-tracking tools are designed exclusively for tracking employee hours. These solutions usually don’t offer a wide range of advanced HR features or directly support other HR processes. However, these platforms sometimes come with basic features related to time tracking, like task tracking and analytics. 

While they may excel at their specific function, standalone tools require integration with other systems to manage HR. However, their simplicity can appeal to smaller teams or project-based businesses.
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Pros

• Some platforms come with relevant features, like timesheets and project-tracking
• Usually have intuitive user interfaces (UIs) that require minimal training
• May offer mobile apps for on-the-go access
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Cons

• Other platforms required for full HR functionality
• Subscription costs may add up for larger teams
• Employees often find it frustrating to adopt standalone tools and juggle multiple apps
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Best use case 

Standalone time-tracking tools are best for businesses looking to solve a single problem (time tracking) and don’t need any additional features or capabilities. They may also work well for teams that rely heavily on freelancers.
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3. Timesheets

Timesheets are a cost-effective method for tracking employee hours — but they fall short when it comes to user-friendliness, compliance support, and error reduction.  

These are often digital spreadsheets like Excel or Google Sheets, making them accessible and easy to implement. However, their reliance on manual entry means errors and inconsistencies can quickly add up, creating challenges for accurate payroll and compliance.

Due to their simplicity, timesheets are best used in low-tech work environments. For example, a small bakery with a few part-time workers might benefit from using timesheets instead of sophisticated software. However, timesheets become cumbersome as teams grow or schedules become more complex.
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Pros

• Minimal setup cost and easy implementation
• Straightforward for employees and business owners to use
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Cons

• Prone to errors and inconsistencies due to manual entry
• Heavy administrative workload, especially for larger teams
• Lacks automation or features to support compliance
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Best use case 

Timesheets are ideal for very small businesses with straightforward operations or temporary projects where digital tools are impractical.
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4. Geofencing tools

Geofencing tools use GPS to verify employees’ presence at designated locations, such as worksites or field offices, during logged hours. 

That said, geofencing poses significant challenges to workplace culture. While it may be effective in specific industries (such as delivery services), these tools raise privacy concerns and may feel intrusive to employees. This can impact trust, job satisfaction, and overall well-being.

HR leaders should carefully consider the potential impact of geofencing on team morale and workplace culture; before implementation, companies must ensure transparency, secure employee consent, and limit data collection to work hours and specific zones.
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Pros

• Verifies team presence at designated worksites
• May simplify clocking in and out
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Cons

• Can feel invasive to employees if not implemented thoughtfully
• Requires strict compliance with data privacy regulations
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Best use case 

It may be practical for companies with distributed, location-specific teams, such as those in construction, hospitality, or delivery services.
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5. Manual time tracking

Manual time tracking involves employees recording their hours (or a supervisor recording hours for employees) without software. This approach may work for small, temporary, or low-tech operations but is rarely sustainable for modern businesses.

The labor-intensive nature of manual tracking makes it prone to inaccuracies and inefficiencies, especially as teams grow or workflows become more complex.
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Pros

• No software costs or training required
• Accessible in low-tech environments
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Cons

• Highly error-prone and time-consuming
• Unmanageable for larger teams or long-term projects
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Best use case

Manual time tracking is best for temporary or one-off projects in environments where digital tools are impractical, such as short-term retail events.
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3 people-centered employee time-tracking tools

Choosing the right time-tracking tool can help balance compliance requirements with team productivity and satisfaction.

Here are three leading options:
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1. Leapsome

Top features

• Time tracking with customizable policies — Team members can log their hours and breaks effortlessly, and businesses can support compliance across borders with policies tailored to company standards and local regulations.
  
  
• Time-tracking widget — The employee experience is enhanced with a user-friendly widget that simplifies logging hours and breaks. Its intuitive design ensures that employees spend less time on admin tasks and more time on their work.
  
  
• Absence management —  Time tracking works seamlessly alongside Leapsome’s absence management tool. HR teams can create and review absence management policies and manage PTO workflows, while employees can easily check their leave accruals and request time off.
  
  
• Payroll — Automating working time data collection helps ensure payroll reflects actual working hours, streamlining payroll processing and reducing errors.
  
  
• Additional HRIS & people enablement functionalities — Leapsome’s time-tracking solution is part of an extensive suite of HR and engagement tools, including Core HR, Reviews, Surveys, Learning, and Goals.
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Pros

• Comprehensive HR and employee engagement solution
  
  
• Intuitive, easy-to-use time-tracking feature requiring little training
  
  
• Multiple integrations available
  
  
• Flexible pricing starting at US$3 (user/month)
  
  
• AI Copilot reduces admin workload and empowers HR teams to focus on strategic initiatives
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Cons

• The time-tracking tool is somewhat new, so updates should be expected
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2. Toggl Track

Top features

• Automated time tracking — Users can switch the project for which they’re logging hours by taking predetermined actions (for example, moving from one web browser to another).
  
  
• Work timer — The online timer and time clock app allow employees to log their working hours accurately.
  
  
• Reporting and analytics — Toggl’s reporting dashboard lets managers and other users with permissions review detailed time logs and track project-based performance. It’s also possible to generate timesheets with this feature.
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Pros

• Free plan with basic time-tracking capabilities 
• Well-known time-tracking solution
• Simple, user-friendly interface
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Cons

• Some users mention that Toggl can quickly become expensive 
• Some users report it’s easy to forget to clock in and out with Toggl’s interface
• Fairly narrow range of features when compared with more comprehensive options 
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3. Clockify

Top features

• Timekeeping — Employees can use a timer to track their work hours or manually enter their hours at the end of each working day. Clockify’s kiosk feature also has employee-specific PIN codes.
  
  
• Time management — Users can request PTO and view their approved requests in Clockify’s dashboard.
  
  
• Reporting — Managers can review time entries in several ways, including the Clockify dashboard, custom breakdowns, and charts. Reports can be sorted by project, rate, and location for more granular insights.
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Pros

• Free plan with basic time-tracking features
• Easy-to-use platform
• Popular with small businesses and freelancers
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Cons

• The free plan has limited features
• Some users report lagging and synchronization issues
• Some users have flagged issues with the mobile app and inconsistent experiences across different devices

🕵️ There’s plenty of time-tracking software on the market — but don’t stress. Explore our guide to the best employee time-tracking software of 2025 to help identify solutions that align with your organizational needs and compliance goals.

Top tips for tracking employee time within your organization

Once you’ve chosen your employee time tracking method, another challenge begins — getting team members on board with your new solution. By following the tips below, you can ensure a smooth rollout:

• Prioritize buy-in — When team members contribute to a big decision, they’re much more likely to feel invested in the final result. This applies to everyone, from individual contributors to C-suite executives.
  
  To foster buy-in, involve your team in the decision-making process. Solicit feedback on tools and methods before implementation. This creates a sense of ownership and ensures the chosen solution aligns with the needs of all stakeholders. 

• Communicate your “why” — Why did you decide to adopt a specific time-tracking solution? Transparency about your thought process helps your colleagues understand and support the change. For instance, if your previous system routinely led to inaccurate paychecks, explain that resolving these issues factored heavily into the HR department’s decision to switch.

• Provide dedicated training — New workflows are bound to confuse, but with the right training, your team can adopt the new time-tracking tool swiftly and confidently. Consider using a platform like Leapsome Learning to build training materials; this ensures everyone has the resources they need to succeed
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Put your people first with meaningful time-tracking software

As much as half of HR leaders plan to upgrade their tech stack by 2026. The top drivers behind this trend include:

• A need for greater HR efficiency (indicated by 89% of survey respondents)
• An increased focus on compliance (51%)
• More support for the organization’s People strategy (47%)

A robust time-tracking system can contribute to each of these objectives. With an effective time-tracking platform, People teams can save time, access accurate data, and better comply with internal policies and local labor regulations.

Comprehensive, people-first time-tracking solutions like Leapsome offer additional advantages, such as enabling managers to make informed decisions about workloads and resource allocation. This helps improve workplace morale and employee well-being by ensuring fair distribution of tasks. 

Above all, remember: Time-tracking solutions should work with your team, not against it. Prioritize tools that align with a people-first approach, and you’ll set your organization up for success.

⏰ Make time tracking a great experience 

Looking for an intuitive, user-friendly time-tracking interface? It’s time to give Leapsome a try.

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Disclaimer: This article is for informational purposes only and doesn’t offer legal, tax, or financial advice. While we’ve done our best to ensure accuracy and completeness, we can’t guarantee everything is up-to-date or error-free. For tailored advice, we recommend consulting a qualified lawyer or tax advisor.