Top 9 KPIs a Time Tracking Software Helps to Monitor

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Top 9 KPIs a Time Tracking Software Helps to
Monitor
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Time is Money
Time management within a business is the key to
efficiency, growth, revenue, and
profits. Establishing key performance indicators
(KPIs) enables a business to monitor and achieve
progress. In the recent past, the growth in the
development and adoption of time tracking
software has simplified business management to a
large extent. If youre thinking about getting
time tracking software for your business, here
are our handpicked KPIs that the time tracking
software will help to monitor.
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Here they are
Top 9 KPIs to Monitor with a Time Tracking
Software
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1 Daily Productive Time
Time tracking software enables you to track the
amount of time team members spend working every
day. Such software gives you access to every
team members historical productivity data,
allowing you to understand their performance
consistency over time.
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2 Absenteeism Overtime
Theres a close link between absenteeism and job
satisfaction. One team member not showing up for
work is an issue for the business and everyone
else on the team. If a team member is falling
behind, the productivity of the entire team will
suffer. A feature-rice employee monitoring
software enables you to track absenteeism
easily. Quality Time Tracking Software also
makes it easy for you to see if a team member is
working more hours than stipulated. Working
overtime can be an indicator of employee health,
workload, and additional workforce requirement.
But, it should never be used as an indicator of
employee dedication.
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3 Revenue Per Employee
Revenue per employee gives you an estimate of how
much one team member brings in for the business.
While the metric can be used during the yearly
performance appraisal of the team member, it can
also be used to benchmark the entire
business. In his book Exponential Organizations,
Salim Ismail explains that linear organizations
have a linear function of employees and
profit. In contrast, organizations with an
exponential function of employees and profit grow
much faster. With this metric, you can measure
where your business stands. Again, the business
needs to measure whether the contribution of
every employee can be quantified in terms of the
revenue they are bringing or not. The decision
depends on the business vertical and
organizational role.
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4 Human Capital ROI

• The human capital ROI is not as straightforward
  as other metrics. The use of this KPI originates
  from the book The ROI of Human Capital by Jac
  Fitz-enz.
• It assesses the value of human capital, such as
  knowledge, habits, and attributes.
• Human Capital ROI
• Company revenue-operating expenses-compensation-be
  nefit cost / Total compensationbenefit cost

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5 Number of Sales
The number of sales a team member makes is one of
the easiest ways to measure the members
performance. If your business requires simple
sales, counting the number of sales is the most
straightforward way to measure team members
performance. However, if your business has a
longer sales cycle, measuring a team members
performance becomes more complicated. You will
need to use process metrics things like the
number of calls made to customers and active
leads to monitor performance against the time
spent in sales conversion.
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6 Managers Subjective Appraisal

• Employee performance appraisal typically happens
  twice a year. Quality of work is the most common
  metric by which performance is evaluated.
• Managers often use the 9-box grid to evaluate a
  team members performance better. The 33 table
  plots the performance on one axis and potential
  on another. Team members that showcase high
  performance and low potential are perfect for the
  role.
• If both performance and potential are high, then
  they are ready to move on to another role.

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7 Utilization Rate per Employee

• The utilization rate is the ratio of the billable
  hours and total hours logged by a team member.
  This performance indicator gives you a clear idea
  about the profitable work that a team member has
  done with respect to their internal cost.
• However, to use this metric to evaluate employee
  performance, you will need to use time tracking
  software that can distinguish between billable
  and non-billable hours.

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8 Profit per Person

• The profit per person indicator enables you to
  calculate the average profit that a team member
  makes for the company. You can calculate it by
  dividing the businesss total profit by the
  number of team members.
• This KPI is most effective for businesses
  outsourcing work to freelancers or hiring remote
  workers who dont have many in-house costs.
• Correlate this with the time spent completing the
  task, and you have the profit ratio per person
  employee, freelancer, or contractor.

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8 Profit per Person

• The profit per person indicator enables you to
  calculate the average profit that a team member
  makes for the company. You can calculate it by
  dividing the businesss total profit by the
  number of team members.
• This KPI is most effective for businesses
  outsourcing work to freelancers or hiring remote
  workers who dont have many in-house costs.
• Correlate this with the time spent completing the
  task, and you have the profit ratio per person
  employee, freelancer, or contractor.

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9 Average Task Completion Time
The KPI gives you insight into your teams
efficiency and helps you estimate how long the
different parts of a project will take to be
completed.
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Endnote
Quality time tracking software that allows you to
measure team performance with all of these KPIs
can be challenging to find. With DeskTrack,
youll be able to track all of these metrics and
more.