Whether you’re tackling timesheets via the pen-and-paper route or going digital with your data, there’s a lot to keep track of. Timesheet templates are useful to track time worked, time off, breaks, shift swaps, and labor laws—just to name a few.

The good news? There’s an easier way to do it all, and do it right.

What’s a timesheet?

A timesheet is a tool used by an employer to track how much time an employee spends on their work. Sometimes referred to as “time cards”, a timesheet is like a record of clock ins and clock outs for hourly employees. It’s used to track employees hours and time entries and calculate payroll for employees based on the time they’ve worked. 

Traditionally, hours are tracked within a table on a sheet of paper. But since it’s 2023, smart businesses use a more modern approach to turn timesheets into digital spreadsheets or documents with real-time functionality. Digital timesheets can save you hours by automating calculations that are necessary for payroll based on billable time. This means less manual data entry and easier payroll prep. 

The pros and cons of using timesheets in the workplace

Timesheets can be a tedious part of a workplace, but they’re a critical part of running a business—and paying your employees, of course. Here are the pros and cons of dealing with time sheets. 

Pro: Timesheets keep you organized

There’s a lot that goes into running a business, and tracking time for every employee is one of those things. Although it can be time consuming, timesheets are a great tool for keeping you and your team organized. This is especially true when it’s time to plan the next schedule or complete payroll.

Do you have hourly employees? Then you’ll find digital timesheet templates particularly useful. Timesheets and other time tracking tools are often used to break down working days and monitor how much time employees spend on specific tasks and various projects.

Knowing specifics around these pieces can help you plan ahead and pay your team quickly and accurately.

Pro: Timesheets keep you compliant

Timesheets can help keep you compliant by accurately tracking hours. This way, you can be sure that breaks and overtimes are compliant with city, state, and federal labor laws. Depending on the timesheet template or tool you’re using, you can even store your time cards and all edits to comply with the Fair Labor Standards Act’s record-keeping rules.

If you’re using Homebase, your timesheets act as a compliance tool. You’ll get a text message when an employee is about to hit overtime, save hundreds of dollars a month by preventing early clock-ins (otherwise known as time theft), forecast your labor costs as you schedule, and track overtime across multiple locations. You can also track time off accruals, set different policies per regulation or different paid time off policies per employee, and manage all of your time off requests in one place. 

Pro: Timesheets keep you in control of labor costs

You might think that the cost of labor is simply about how much an employee makes. The actual definition offers a bit more clarity on what you’re really paying for. 

The cost of labor is the sum of all employee wages paid, plus how much it costs to provide benefits, like health insurance and paid time off, as well as how much needs to be paid in federal and state payroll taxes. 

Timesheets can help you understand the full price of your labor costs, and how to keep them in line with your budget. If you’re using a timesheet tool like Homebase, you can prevent labor leakage, reduce time theft, prevent overtime, and set labor to sales targets.

How? An automatic time clock works with your timesheets to calculate total hours, paid and unpaid breaks, and overtime. It also tracks salaried employees and calculates non-exempt salaried overtime, so you can get back in control of labor costs. 

Con: Timesheets can get messy

Timesheets are a helpful tool to getting organized. But because there’s so much that goes into them, they can get messy and complicated.

If you’re using a paper-and-pen method or a spreadsheet, your timesheets can become filled with errors. And those errors can add up and cost you time and money.

Without an accurate way to track hours worked, managers might miss essential information like breaks taken, paid time off, sick days, or even late clock ins-and-outs. In fact, 20% of every dollar earned by a U.S. company is lost to time theft. Time theft is the act of employees taking unauthorized company time without using paid time off or paid sick leave, whether intentionally or unintentionally. 

This mess can be easily prevented with the proper tools and software that focus on managing hourly workers—so you don’t have to. 

Con: Timesheets take time

It might seem a little backwards, but it’s true. Though timesheets help you stay organized and compliant, they take a lot of time to collect, complete, and review. Emphasis on “a lot,” especially if you’re using the paper method of tracking time.

Timesheets require everybody to stay up-to-date and on track of their schedule. That means employees need to be actively tracking when they’re clocking in, when they’re taking breaks, when they need time off, and when they leave their shift. It also requires you to make sure that all time is being tracked properly.

After collecting timesheets—which is a job on its own—managers and owners need to ensure that the times recorded are correct. This involves a lot of due diligence and organization, not to mention coordination and communication with your team.

Feeling overwhelmed already? Don’t worry: there’s an easier way. 

Your free timesheet template

A timesheet template is a document with a predefined page layout that allows you to record employee working hours, breaks, and time off a bit more easily. It includes elements like:

• Employee name
• Date 
• Number of hours worked
• Hourly pay rate
• Task or shift 
• Clock in and clock out times
• Overtime 
• Paid and unpaid breaks 
• Paid or unpaid time off 
• Estimated wages per employee

Timesheet templates give you the basics of what you need to keep work on track and stay compliant with state and federal labor laws. Plus, with a timesheet template, you don’t need to create your own from scratch. Crisis averted.

The best news? Homebase gives you free timesheet templates so you know exactly how much your employees should get paid, how many hours they’ve worked, and whether or not they’ve accrued any overtime. 

Homebase’s timesheet templates are specifically designed for how you do business. Our templates don’t include any wage rate information, so your managers who don’t have access to wage rates can still fill out the timesheets. We also get that your employees can work a bunch of various roles with different wages for each, and our template takes these differences into account so you can calculate various rates with ease. 

How to effectively use timesheets at your business

If you’re looking for the how-to of effectively using timesheets at your business, you’ve come to the right place. The first way to effectively use timesheets is to simply use them to keep an accurate record of the hours your employees work. This practice ensures that employers pay their team the right amount, which means neither you nor your employees end up out of pocket.

Most businesses use some kind of timesheet system to track employee time, but there’s a range of different ways to do so. For example, some employers still use paper timesheets and online documents like Excel and Microsoft spreadsheets, while others use a less modern-way, like a check-in binder.

But if you’re using either of those timesheet options, it’s time for a change. 

Go automated with your time tracking

Consider joining thousands of small businesses who’ve found an alternative, and easier way, to do timesheets. By using a digital time tracking software, like timesheet apps, you’re choosing a more robust time-tracking solution that lets you eliminate repetitive tasks like entering hours worked, and do so without the cost and commitment of hiring a dedicated human resources manager.

Automatic employee time tracking will also save you hours on payroll every pay period. With a free integrated time clock, you can easily track employee work hours and transfer the data to your preferred payroll integration.

These solutions to timesheet troubles also offer ways to ease your scheduling woes and prevent time theft, like buddy punching. This is when an employee asks their coworkers to clock them in for them before they’ve arrived to work, and is usually done to avoid getting reprimanded for being late or to prevent the loss of wages.  

A time clock app, like Homebase, for example, assigns unique PIN codes to employees so they can clock themselves in on a mobile device. It also alerts you when an employee is late signing into their shift and takes photos of the worker when they clock in, so you can rest assured the right individual is logging the time. 

By implementing a more modern approach to timesheets at your business, you’re not just saving yourself or your employees time, but also saving money and building trust through accountability with your team. 

Ready to go paperless? Use Homebase’s automated online timesheet templates

Let’s cut the sheet—timesheets can be a nightmare. Especially the pen-and-paper kind, or their still-not-great rival: the Excel/Google spreadsheet

And because we know small business so well, including the pain you feel when it comes to dealing with timesheets, we’ve made it better than just digital. With Homebase, timesheets are automatic.

Homebase’s mobile timesheet app is an all-in-one solution to traditional and digital timesheets. It makes tracking employee time and labor costs instant and paper-free, and payroll prep faster and easier with the ability to run payroll from anywhere.

And when we say “easy”, we really mean it. 

“Before Homebase, we were printing out timesheets and manually calculating the hours,” says Ashley Ortiz, Owner at Antique Taco. “To keep up with the times, we’ve switched to Homebase, and it has made our lives so much more efficient.”

Timesheets, time clocks, and more

Paired with the Homebase time clock tool, your employees have a way to clock in-and-out of their shifts from their smart phone, tablets, computers, or POS devices. The time clock connects with your online timesheet to calculate hours and create payroll reports and wages for each team member.

Homebase’s mobile timesheet app even takes care of tallying up paid and unpaid breaks and overtime to help you stay compliant with local, state, and federal labor laws. Worried about labor leakage and time theft? Don’t be. The Homebase Timesheet app lets you stay on top of your labor costs by hour, department, and role, so you’re always in control of what and who you’re paying, without spending the hours tracking down timesheets and correcting them. 

Speaking of tracking down timesheets, all of your timesheets can be found on the “timesheet” tab on Homebase’s main menu. If your business is using the Essentials plan, you can store employee time cards securely in the cloud for four years, so you’ll be able to check them and access their full edit history at any time. Your employees can also verify their hours worked, report any errors, and track their pay—all for free. 

Timesheet templates FAQS

What is a timesheet?

A timesheet is a tool used by an employer to track how much time an employee spends on their work. They’re a record of clock ins and clock outs for hourly employees. Timesheets track team’s hours and time entries, and calculate payroll for employees based on the time they’ve worked. 

How can you use a timesheet template in your workplace?

A timesheet template is a document with a predefined page layout that allows businesses to record employee working hours, breaks, and time off more easily.

When you’re using a timesheet template in your workplace, you have the foundational systems you need to keep track of hours worked and stay compliant with state and federal labor laws.

Once your timesheet template is ready to go, you or your managers can fill it out. This lets your team know exactly how much they should get paid, how many hours they worked, and whether or not they accrued any overtime.

How can you make timesheets more efficient for employees and employers using timesheet templates? 

Timesheets don’t have to be tedious and time consuming. To make them more efficient for employees and employers, digitize them or make them automatic with a timesheet app.

Look for timesheets that allow for remote clocks ins-and-outs, so field employees don’t have to go to a central office or wait in line at your point of service (POS) terminal to start their shift. For those managing timesheets, use a tool that automatically notifies your team when they have a shift coming up or if they forget to clock in.

To make timesheets more efficient for employers, use one that offers automated payroll calculations. This can reduce typical problems with manual payroll, like human error and the amount of time it can take.

With an efficient online timesheet app, you’re doing more than totalling the hours worked, but also subtracting unpaid breaks, tallying and recording tips, and instantly calculating overtime.

Why do employees value a modern approach to timesheets?

Timesheets aren’t just a chore for managers, but for employees too. Employees have to remember to clock in-and-out on time, and without gentle reminders if they haven’t done so, they can miss out on wages or have their boss assume they’re not at work.

With a modern approach to timesheets, you can simplify the whole process for the team. And that includes getting paid. With the right tools, you can bring timesheets and payroll all in one place, instantly converting timesheets into hours and wages. Once you run payroll, you can even send direct deposits to your team—all from one app.

Not only that, your employees see what they’re getting paid and track their hours as they go. Report any corrections in the app, and coordinate and track shift swaps—in the same place.

A win-win for you—and your hourly team.

Is your business struggling with timesheets? Get Homebase for easy scheduling, time clocks, payroll, messaging, HR, compliance, and more—all in one app. Get started for free.

The post Timesheet templates: what every business needs to know appeared first on Homebase.

No matter what you decide is best for your business, there are tools that can help make scheduling the easiest part of your day. 

What’s a work schedule?

You might think that a work schedule is a few shifts laid out for the week, but it’s a bit more complex than that.

A work schedule is more like a plan. It determines an employee’s working hours, days on and off, and depending on the business, it outlines the tasks they’ll perform. It works with the schedules of other teammates so that all needed shifts are covered as required.

Work schedules are commonly made for both full-time or part-time work, and can include flexible work hours, rotating shifts, fixed or split schedules. It’s important to create work schedules that actually, you know, work: not just for your scheduling apps, but for your employees and your customer flow.

What’s the most common work schedule?

There’s a reason why Dolly’s 9 to 5 song was so popular—it’s the most common type of work schedule for employees in North America.

The 9 to 5 job is the traditional schedule that people think of when they hear the words “full time job”. These work schedules can be paired with images of corporate life, a pension, and hour-long commutes.

But although it’s popular, it doesn’t mean it’s the only way to work. In fact, there are many different alternatives to working the 9 to 5, and businesses are taking note. Even in 2019—also known as pre-pandemic times—50% of employees globally were working outside of their main office headquarters at least 2.5 days a week.

“Our bodies also would benefit from more flexibility,” says Emily Laber-Warren in this opinion piece from the New York Times.

Ms. Warren leads the health and science reporting program at the Craig Newmark Graduate School of Journalism at the City University of New York.

“Each of us has a personalized rhythm known as a chronotype — an internal timer that governs when we naturally fall asleep and when we are most alert. For more than half of adults, biological bedtime falls after midnight, which means that a typical 9-to-5 work schedule throws many of us out of sync.”

It’s evident that our minds need time to decompress and disassociate from work, no matter what our jobs are. And for busy people who also need to walk the dog, feed the kids, or in some cases, work a second job, finding that time can be difficult.

So, maybe Dolly was onto something when she said “there’s a better life”.

Let’s see how different work schedules might help us get there. 

The 5 most common work-schedule types that aren’t 9 to 5

Not every schedule is a 9 to 5, and that’s perfectly fine. Here are 5 common work-schedule types that might work for your business. 

1. Shift work schedules

Shift work is defined as any work schedule that falls outside of the hours of 7am and 6pm. It can include evenings, nights, and morning shifts, and fixed or rotating schedules.

An example of shift work schedules could be a bike mechanic working Tuesday and Wednesday from 8 am to 2 pm, and on Saturday from 12pm to 8pm. They could be scheduled for these hours due to the amount of bikes in the shop that need to be fixed, or in anticipation of a rush on the weekend.

Shift work schedules can be beneficial for any business that has customers or clients outside of “regular business hours”. This includes restaurants, hotels, retail, manufacturing, tourist spots, galleries, and more.

When it comes to scheduling shift workers, business owners need to be aware of the rules and regulations that support the health and safety of workers.

For instance, the Fair Labor Standards Act (FLSA) requires that if an employee is working more than 40 hours in a 168 hour period, it should be counted as overtime. This is because the average American work week is 40 hours, which equals 8 hours per day for five days a week.

Businesses and organizations are required to schedule a minimum of 8 hours in between shifts, and in some states, like New York, employees must receive a 24-hour break between shifts at least once a week, and employers must offer a minimum of 4 hour shifts.

2. Flex work schedules

Flex work schedules are when employees work a full shift but in varying hours. It gives employees a bit more control over when they work and is an alternative to the 9 to 5, offering staff more autonomy in their day. That said, some employers do require a “core time” that staff should be online or at the job. 

According to a 2019 study by the International Workplace Group, 80% of workers would turn down a job that didn’t offer a flexible work schedule for one that did.

Employees with flex work schedules can create compressed work weeks or break up their days. For example, one employee might decide to work an extra 30 minutes every day of the week in exchange for every other Friday off, while others might break up their days into halves, working 7am to 11am and jumping back on from 2pm to 6pm.

While flex work schedules may seem like the answer to the work/life balance conundrum workers find themselves in, it’s not always an option for every business.

Flex work schedules can work for creative industries, like design or photography studios, for example, but not for businesses with strict hours of operation or busy times dictated by customer flows.

3. On-call work schedules 

On-call work schedules refer to a schedule where employees are available to work outside of their regular hours if necessary.

These types of schedules are common in retail and hospitality, and can be used to cut a business’s labor cost. On-call work schedules can mean that staff members don’t need to be on-site at the business premises all the time but are available to come in on short notice if necessary, like in a rush or if someone calls in sick.

There are currently no laws or regulations around on-call shifts, but even though they can be convenient for managers and business owners, employees might find on-call schedules challenging.

One challenge is a lack of security in pay. On-call work schedules mean that employees don’t have any guarantee of work, which means there’s no guarantee of getting paid.

Another challenge is lack of work/life balance. On-call work schedules don’t always offer the flexibility employees need in their personal lives. If a manager calls, they might have to reschedule commitments or find alternatives for child care with limited notice. The result? Low employee satisfaction, higher levels of stress, and a lack of security in their role. 

4. Rotating schedules

Rotating work schedules are implemented by businesses to cover various shifts for their weekly schedules or monthly schedules. If a business decides to go this route, you’ll see employees working a variety of shifts, whether they’re 12-hour shifts or less,  like the day shift, night shift, or any other type of shift for a certain number of consecutive days.

Once those days are up, it’s time to rotate. Employees will now work the second shift—the type of shift they didn’t previously work—for another set period of time.

For example, an employee might work the day shift for 6 weeks, and then in the following 6 weeks, they would switch to the night shift.

There can be a number of perks to rotating work schedules, all depending on the type of business you run. For example, in a retail environment that’s based on commission, weekday mornings may be very slow, and some workers might not appreciate only getting these shifts. With a rotating work schedule, the manager can switch up employees from mornings to the busier evenings every few weeks, so every staff member can get a fair chance at making commissions. 

5. Split shift schedules

Split shift work schedules are when a work schedule breaks a single day into separate shifts for an employee. The break in between shifts is normally a minimum of 2 hours. For example, a server might work the brunch shift at a restaurant, then return at 3pm to prepare for the evening’s dinner service.

Split shifts come with various rules and regulations depending on the state you’re working in. For example, in California, it’s stated that “workers who earn the minimum wage per hour are entitled to additional pay known as a “split shift premium” when their schedule includes a split shift. The premium is equal to one hour of pay at the rate of the minimum wage”.

If you’re a business owner exploring split shift work schedules, make sure you know the regulations for your local area.

What are the advantages of alternative work schedules for employees?

Working outside of the traditional 9 to 5 can have its advantages. Employees who have the autonomy to work flex work schedules or shift schedules can have more freedom in their day or night. They might be able to take advantage of down-times in traditional industries, like enjoying a quiet Main Street on a Tuesday morning shopping trip, or being able to find some me-time at the coffee shop while the world works away on a Wednesday afternoon.

Exploring different work schedules can also support your creativity, work habits, and help you develop healthy working habits—something that every employee should have, no matter their schedule type.

A 2023 study focused on work-life balance reported that “a substantial portion of the global workforce are working either long or short hours when compared to a standard 8-hour day/40 hour working week”. The study found that longer hours of work were “generally associated with lower unit labor productivity” and shorter hours were linked with a boost in productivity. 

What are the disadvantages of alternative work schedules for employees?

Although alternative work schedules can offer advantages like more flexibility and the potential for extra pay, they can also come with their disadvantages. 

These can include issues with work/life balance, especially for on-call workers and those working split shifts. Employees who are working rotating shifts might also suffer from health issues, like stress and mental health issues. Consider a worker on night shifts for 6 consecutive weeks. Until their body gets used to the schedule, they might feel overworked or even disconnected from their surroundings, family, and friends. This can not only decrease their job satisfaction, but it can also prove unsafe.

From the employer’s perspective, alternative work schedules can be a bit of a headache.

Without the proper tools, there may be tracking issues, scheduling conflicts, unhappy employees, and difficulty coordinating with teams. 

3 ways to manage shift schedules for employees

Here are three tips that you can implement now to manage shift schedules with ease.

1. Manage work schedules with a scheduling app

Scheduling work schedules can be tough, especially when they’re outside of the typical 9 to 5, but it can be done—and done easily.

By using smart employee scheduling software, you can automate the process of scheduling your staff, no matter their working schedule. Depending on the software, you can organize your labor data and keep it all in one place and even try to try a timesheet template to help with payroll, too. 

2. Manage work schedules with time tracking

Time tracking is an important part of any work scheduling. You’ll want to make sure your employees are showing up on time, leaving on time, and taking the appropriate breaks.

Using a manual system can make it hard to do this, but software can help. With some software, you can even set up your break and overtime rules to comply with federal, state, or city laws, which is important for staff who are working outside of the common 9 to 5 schedule.  

3. Manage employee satisfaction with transparency

If you don’t have happy employees, you’ll probably have a hard time making sure they show up for their scheduled shifts. Without transparency and open communication, employees might feel like their schedules are unfair compared to others, leading to decreased morale or a toxic workplace.

On the opposite side, you’ll want to know when employees are feeling their best and what works for their life. By collecting feedback from employees, you can schedule to suit the needs of their life, and of course, your business.

No matter which work schedule is best for your business, Homebase can help.

Time, energy, planning, tracking, and communication. Let’s face it: scheduling is a process.

Homebase helps you get through it all with tools to support the needs of your business and your team.

Let’s start with scheduling. Homebase’s schedule-maker sends your hourly workers calendar notifications about their work schedule, and alerts them when their shift is coming up. Our online scheduling feature means that managers and business owners can build and update the schedule from anywhere for any number of employees, and know that their team will always have the latest schedule in their pocket.

Homebase also offers a connected time clock that makes it easy to have a full picture of your labor costs. Think of it like a punch clock app or time tracker, but on their phone, a tablet, computer, or POS at work. It’s a modern, digital way for employees to clock in and out of their shifts. The time clock connects with your online timesheet or time tracking software to calculate hours and create payroll reports and wages for each team member. 

Check in on your employees

Looking to see how employees are doing? Track and store employee performance so you can make better scheduling decisions. Our scheduling app can show you which employees show up late most often, so you can schedule accordingly and take action. Or, check out info like which time periods have the highest sales (and need the most staff scheduled).

Lastly, let’s talk about communication. With Homebase, your team gets our free mobile app, meaning they’ll always have access to their up-to-date schedule, hours worked, and earnings. Employees also have the autonomy to track and manage their time-off requests and availability, and can communicate with each other on the app to coordinate and request shift trades or covers, tracking everything so you don’t have to.

Remember, when work schedules aren’t the typical 9 to 5, you need tools that are as agile and on-the-go as your employees. By taking a modern approach to scheduling and time tracking, your team gets the transparency and simplicity they need, and you get hours back in your pocket—and because time is money, some dollars, too. 

Work schedule FAQS 

What is a work schedule?

A work schedule is a plan that determines an employee’s working hours, days on and off, and sometimes, and depending on the business, it outlines the tasks they’ll perform. It works with the schedules of other teammates so that all needed shifts are covered as required.

Which work schedule is right for my business?

Figuring out which work schedule is best for your business first starts with understanding the needs and nature of your business, the people you serve, and the employees that you’ve hired.

Once you’ve determined that, you can try a variety of work schedules if it makes sense for your business. For example, you might know that a 9 to 5 won’t work for your restaurant, but you’re not sure if split shifts in combination with rotating shifts will. To find out, solicit feedback. Ask your employees what they want, and test both.

Track your findings then make a plan—just don’t forget to communicate it. 

How can a work scheduling app help me?

A work scheduling app can help to automate the work schedule process. It can help you organize your labor data, provide timesheet templates, digital time clocks, and notify you about what’s happening at your workplace.

Should I use an hours tracker to track my employee hours? 

If you’re creating work schedules, you probably need to use an hours tracker to track your employee hours. This can help you stay on-top of what’s happening at work, like when employees are late for shifts or approaching overtime.

Tracking employee hours is also necessary for taxes. With a time tracking app, you can store time cards—including all edits—in one space, helping you comply with FLSA record-keeping rules.

Want to end your scheduling chaos? Get Homebase to build, share, and optimize your work schedules to keep your team on track—no matter their shift. Get started for free with our easy scheduling app.

The post 5 types of work schedules for your business to consider appeared first on Homebase.

And as a small business owner, you likely don’t have the luxury of punting the task to a payroll specialist

Fortunately, paying your hourly shift workers doesn’t have to be a major headache. We’ve put together this step-by-step guide for how to pay your employees, so you can finally stop feeling like you want to break the bank every pay period.

What is employee payroll?

Employee payroll is the process of paying everyone who works for your company. 

But payroll isn’t just handing a check to your employees. From tracking employee hours and calculating wages to withholding taxes, there’s a lot that happens behind the scenes before your team can get paid.

Taking care of payroll accurately and on time is a key part of running a successful business. Otherwise, you might find yourself saddled with some unhappy employees and some pretty hefty payroll tax fines.

What’s the difference between salary pay vs hourly pay?

When it comes to paying your employees, there are usually two options: salary pay or hourly pay.

How to pay employees: salaried

When an employee is paid a salary, you pay them a fixed amount for a specific period of time. Typically a salary is expressed in an annual amount, but you may also see monthly salaries from time to time. 

Salaried employees are paid their full salary regardless of how many hours they work. This means that they typically receive the same amount every pay period. This can make managing payroll a bit simpler since every paycheck should look very similar.

Here’s an example of a salary pay:

Consider an employee who earns a $48,000 salary per year and is paid monthly—or 12x a year. Before taxes and deductions, this employee will be paid $4,000 every month, regardless of how many hours they work.

Because salary pay is fixed, you’ll find it’s more common in roles that work a 9-5. Think corporate or office jobs where weekly hours are relatively steady. However, some roles in non 9-5 businesses can see salaried employees as well, like with assistant managers, franchise owners, or roles that have specific specialties, like a window dresser or chef.

How to pay employees: hourly

On the other hand, hourly pay compensates an employee based on the total number of hours worked. The hourly pay rate is agreed upon when they join your team. But, the total compensation can vary each pay period depending on how many hours they actually worked—sometimes by a lot.

Managing payroll for hourly employees can be a bit trickier since there are so multiple factors at play. 

Here’s an example of hourly pay:

Consider an employee who earns $15 an hour and is paid weekly. 

• In week 1, they work 20 hours. They’ll get paid $300 before taxes and deductions.
• In week 2, they work 40 hours. They’ll get paid $600 before taxes and deductions.

Since hourly employees are paid for their time on the clock, getting an accurate timesheet of hours worked is critical.

Another thing to keep in mind with hourly employees is that they’re typically eligible for overtime pay. Overtime pay is applied anytime an employee works over a set number of hours a week. 

The U.S. Fair Labor Standards Act considers any working hours over 40 hours a week to be overtime. As an employer, you’re required to pay at least 1.5x an employee’s standard hourly rate for any hours worked overtime.

Hourly pay is common for shift workers where the weekly hours and schedule can fluctuate based on business needs. You’ll often see hourly pay in restaurants, retail, and other service businesses. In 2020, 55.5% of all workers in the US were paid at hourly rates.

What is the minimum hourly pay rate?

In the United States the federal minimum wage is $7.25 per hour. 

Each state also has its own minimum wage requirements. There are 29 states with minimum wages that are higher than the federal rate, with California being the highest at $15.50 per hour. 

If your company operates in a state with minimum wage requirements that are higher than the federal minimum, you must follow the minimum wage in your state.

This easy-to-use map from the U.S. Department of Labor breaks down all the minimum wage requirements for each state.

Minimum wage is the lowest amount you can legally compensate your team for their work. But when it comes to paying your team, less isn’t always more.

There are lots of benefits to offering more competitive wages and benefits. In fact, it can even save you money in the long run. Employees who feel they’re compensated for their time tend to be more productive and happier. And happier, more productive employees stick around longer, reducing turnover and improving your operational efficiency.

Of course, money isn’t the only motivating factor for employees. There are many other benefits you can offer to help retain your employees and keep them happy at work. Even offering perks like early access to wages can make a huge difference in attracting top talent to your team.

A step-by-step guide to paying your employees

If the thought of running payroll feels daunting to you, you’re not alone. 

And we won’t sugarcoat it, there’s a lot to consider when it comes to paying your team.

But with a little practice and patience, you’ll be running payroll like a pro in no time. To help you on your way, let’s take a look at a step-by-step guide for how to pay your employees.

1. Collect payroll forms during employee onboarding

Paying your employees isn’t something you can leave to the last minute. Payroll prep starts long before payday. 

One of the first steps is to get the right payroll forms and tax documents from your employee from the day they join your team. 

Some common forms that you’ll want to collect during employee onboarding include:

• Form W-4 so you can withhold the right amount of federal income tax. Depending on your state, you may also require a state-specific Form W-4.
• Form I-9 to check for employment eligibility.
• Direct deposit form or banking information if you intend to pay your employees via direct deposit.

If you happen to be missing any of these documents from your existing team, don’t fret. Just make sure you collect them as soon as you can, so you don’t miss anything going forward.

2. Calculate hours worked through time tracking

Next, you’ll want to get an accurate pre-tax pay amount—commonly known as gross pay. This is typically calculated by multiplying your employee’s hourly rate by the number of hours worked. 

In order to pay your team for the hours they’ve worked, you need proper time tracking in place. You should be tracking everything from start time, end time, and any breaks in between. You’ll also want to account for any additional hours, including vacation time, overtime, sick days, or any shifts they may have picked up along the way.

3. Calculate employee taxes and deductions

Remember the documents and paperwork you collected from your team in the first step? It’s time to pull those out because they hold the answer to how much you need to deduct from your employees’ paychecks for taxes.

In general, you should expect to withhold the following amounts:

• Income taxes, including federal, state, and local taxes.
• Payroll taxes, including Social Security and Medicare taxes.
• Benefit deductions, including health insurance and retirement benefits.

Once you’ve subtracted taxes and other deductions out of your employees’ pre-tax pay, you’re left with their net pay. This is the amount that they’ll take home at the end of the day.

Let’s look at an example.

An employee who works 40 hours at $15 an hour receives $600 in gross pay. 

Let’s say you need to withhold $100 for taxes. This means the employee’s net pay is $500. 

Your employee will receive $500 on their paycheck on payday.

4. Pay your employees on payday

It’s officially payday! Time for the fun part—you get to pay and reward your team for their hard work.

How you distribute paychecks will depend on your payroll process. Some businesses opt to pay their employees with physical checks. However, direct deposit is quickly becoming the norm, even among small businesses.

Everything up until this step needs to happen before payday. Otherwise, you run the risk of paying your employees late. Paying your employees late is illegal and it can cost you. For example, in California, you can be fined $100 for every employee that is paid late.

5. File payroll taxes 

When you deduct taxes from your employees’ paychecks, you’re simply withholding them on behalf of the local, state, or federal tax agencies. We hate to be the bearer of bad news, but you don’t get to keep it.

You’re simply responsible for distributing them to the right agencies. Any federal tax you’ve withheld will go to the IRS, state taxes will go to your state’s tax agency, and so forth.

There are also some payroll taxes like FUTA and SUI that are paid exclusively by you, the employer. So you’ll need to make sure that these are paid out appropriately as well.

6. Maintain employee payroll documents and records

Once you’ve closed out a payroll period, you need to keep all your payroll records and documents organized and easily accessible. This way, if an employee ever has questions about their paycheck or you need to look back on your records, you’ll have everything you need. 

But holding on to payroll records isn’t a nice-to-have, it’s the law. The FLSA requires that you keep records on hand for at least three years, including time cards, schedules, as well as any pay additions or deductions. You’ll need everything on hand if you’re ever audited.

What are some struggles businesses face with hourly payroll?

Hourly payroll is extremely common among small businesses. But it’s not without challenges. In fact, pesky payroll errors can sneak up on even the most diligent business owners. According to the IRS, 33% of employers make payroll errors that can cost a pretty penny.

Here are some common challenges that businesses face when it comes to hourly payroll.

Time constraints

As a small business owner, you likely wear a lot of hats. Payroll is just one of many to-do’s on your list, so it can be hard to carve out a dedicated amount of time for running payroll.  

There’s a lot of prep work that goes into ensuring payroll is completed accurately, including calculating hourly pay rates and working hours. Skipping the prep work can create tax discrepancies and in the worst-case scenario, you might find yourself in legal hot water.

Homebase Payroll was recognized as the best payroll for small businesses with hourly workers in 2022. By using Homebase you can save up to 30 minutes every time you pay your team—and trust us, that adds up.

Inaccurate employee pay time sheets

Unlike salaried employees, hourly employees are paid based on the number of hours they’ve worked. If your timesheets aren’t accurate, your team isn’t going to be paid properly. Employee hours can be incorrect for several reasons including:

• Employees forget to clock in and out
• Time theft
• Shift swaps
• Sick days and vacation days

You can minimize timesheet errors by using a free time clock app, as well as creating policies around clocking in and out. 

Missing overtime

Hourly pay nonexempt employees are entitled to overtime—it’s the law. This means that you need to be in the know anytime an employee goes into overtime, so they can be paid accordingly.

With manual tracking, it’s easy to miss when an employee slips into overtime. So it’s important to pay extra attention to your team’s working hours, so nothing is missed.

Fortunately, Homebase makes overtime and labor law compliance easier than ever. From setting up breaks and overtime for your state, we’ll make sure your team is paid every penny that they deserve.

Incorrect tax deductions and withholdings 

Hourly employee payroll is complicated enough. Throw in all the tax deductions and compliance requirements, and it’s enough to make anyone feel a little dizzy.

Save yourself the headache with Homebase. We’ll do the heavy lifting and help you calculate, pay, and file your payroll taxes. You’ll save time and feel confident that all your money is going to the right place.

Struggling to master payroll?

Get Homebase for the ultimate payroll solution. With time clocks, automated payroll, and compliance guidance, you can pay your employees in just a few clicks. Get started for free with a better payroll system on how to pay your employees.

How to pay employees FAQS 

How do I pay my employees?

Paying your hourly employees is simple. Follow these basic steps when it comes to running payroll for your team:

1. Collect employee information and payroll forms
2. Calculate gross pay based on their hourly rate and hours worked
3. Determine employee net pay by deducting the required taxes
4. Pay your employees by check or direct deposit
5. File payroll taxes
6. Document and maintain your payroll records

What’s the difference between salary pay vs hourly pay?

Salary pay is a fixed amount that an employee is paid over a period of time—typically monthly or annually. The amount a salaried employee is paid doesn’t change based on their working hours. Hourly pay is the amount an employee is paid per hour. Their total pay for each pay period can vary depending on the number of hours worked.

What’s the biggest struggle small businesses face with paying their employees? 

The biggest challenges small businesses face around paying their employees include errors and the time commitment it takes to make sure everyone is paid properly. Businesses can avoid common errors and reduce the amount of time it takes to prep for payroll by taking advantage of a full-service payroll software like Homebase.

The post How to pay employees as a small business: A complete guide appeared first on Homebase.

In this article, we’re going to take a deep dive into marketing channels and marketing tools small businesses can use to grow their company—all for free. 

Learn how to bring more eyes to your business without breaking the bank. Plus, keep your eyes peeled for one of the most overlooked free marketing tools your small business has.

What is marketing for a small business?

If you run a small business, marketing needs to be at the top of the list. But what is marketing for a small business?

Simply put, marketing is letting people know that your business exists.

It’s getting your brand in front of as many potential customers as possible. 

Even though the definition’s pretty simple, marketing your small business can be overwhelming and confusing. There’s a lot of noise out there on the best ways to get the word out. With more and more tools coming out every day that you can use to market your business—think TikTok and Snapchat as two newer options—how do you know which ones to use? 

What are free marketing channel examples?

Marketing channels are tools that help businesses market themselves to potential customers. Let’s take a look at the top three free marketing channels that small businesses can use to grow their business. This isn’t an exhaustive list, but it’s a pretty great start.

Build your business a website

In the digital age, you need a website. Period. The easiest way for you to communicate to potential customers all of the information they could ever possibly need to know about your business is through a website. Websites are accessible to most people since smartphones are in everyone’s back pocket. Think of it as a digital business card.

Hubspot has the data. “There are over 4.5 billion active internet users worldwide, and over 90% of them accessed the Internet via mobile devices.”

Some other pluses? A website as a primary marketing channel increases your credibility, makes your business more visible—and as an extra bonus for location-specific businesses like restaurants and salons—allows Google to recommend you to local customers.

In terms of search intent, these statistics really drive home how important a website is for a local business:

• 46% of searches on Google include local intent
• 97% of users use search to find local businesses
• 28% of users purchased an item after a local search
• 70% of users will visit a store because of what they found online

Those are some pretty convincing numbers to get you started on building that website today.

Don’t sleep on email marketing

In the age of social media, email marketing has become the forgotten middle child of marketing. But did you know that email marketing has the highest return on investment (ROI) of any marketing channel? New data says that for every $1 spent on email marketing, $36 is returned on investment. That’s an ROI of 3600%! 

But you don’t need to invest in a full email marketing campaign right off the bat. Sending out a weekly or monthly newsletter to keep your customers up-to-date on specials and offerings is enough to see more customer loyalty and more money in your business.

Social media is where your customers are

Social media is one of the most utilized free marketing tools. 4.76 billion internet users—or 59.4% of the world’s population—are social media users.

The term ‘social media’ is pretty broad. It encompasses Facebook, Instagram, LinkedIn, TikTok, Twitter, What’s App, and Snapchat—just to name a few. More and more social media channels are being invented all the time (and in Elon’s case, sometimes taking a dive). Small businesses are at the forefront of using social media for creative free marketing.

It’s easy to get overwhelmed using social media as a free marketing tool though. There are so many options it can be hard to narrow in on what one(s) are right for your business without getting overwhelmed.

Knowing your customers and where they hang out online is your first step to successfully marketing your business on social media. If you’re a salon that loves to do vibrant colors, TikTok’s the place to showcase your stylist’s skills. If you’re a restaurant in the financial district of a big city, LinkedIn’s where your clients are most likely hanging out.

Pick your social media channel and go all in, and don’t get wrapped up in trying every single one.

Why should small businesses use marketing tools?

The days of word of mouth and paper flyers are over. It’s a digital world, and we’re just living in it. People reach for their phones to ask their friends for their opinions on where to go, where to shop, and where to eat. 

The next thing they’re going to do? Google your business or look you up on socials. So you better be ready for it.

The advantage of using these marketing tools is that they’re widespread. They can reach people who otherwise wouldn’t have known your small business exists. 

They can also relay a ton of information about your business quickly. As we mentioned above, a strong online presence means future customers can quickly and easily see your hours and location, saving them from having to call your store to see if you’re open (and thus, saving you from spending time and labor to answer these phone calls). Customers and clients can also see your menu, a list of your offerings or products, your pricing, an assortment of testimonials, what deals you may be running, any special events, new offerings, and on and on. All of this at their fingertips.

Ignoring free marketing channels and free marketing tools can really put a dent in your bottom line as a business. The math’s simple. More eyes on your business = more sales.

This is why every small business needs to be using marketing tools.

Best marketing tools for small businesses (and they’re free!)

Now that we know the ‘what’ and the ‘why’ of marketing tools for small businesses, let’s look at the ‘how’. Here’s a list of the best free marketing tools for small businesses.

1. Use Wix to build a simple free website for your small business

If you need a basic website, Wix is the way to go. It’s one of the only website builders that offers a completely free option. While you can add customizations, the free version doesn’t have any bells and whistles, which could suit you just fine. You can literally build a website that acts as a business card with simple information all your customers need to know in a day.

If you do want to start adding things, like a custom domain, the monthly plans start at an affordable $7.50 per month.

2. Mailchimp is your free email marketing best friend

Mailchimp has been known as the best free email marketing tool for years because it’s so easy to use. It has the added bonus of being free for up to 500 subscribers. You can easily create sign-up forms for your website, landing pages to build your list, and drag-and-drop email designs.

Mailchimp will make your email marketing a simple task. That’s the goal when marketing your small business.

3. Mailerlite is the new email marketing kid on the block

If you want to research your options for email marketing, Mailerlite is the new kid on the block. It offers all of the same benefits of Mailchimp like landing pages, sign-up forms, and easy-to-use email design. Where Mailerlite has Mailchimp beat is its subscriber numbers. Mailerlite allows up to 1000 free subscribers, doubling the quantity you’d get with Mailchimp. 

If volume is a big part of your business, then Mailerlite may be the better option for free email marketing.

4. Canva can make your marketing pretty

Canva’s the free marketing tool that makes every small business owner a designer. It can help you create graphics for your website, a header and blocks for your emails, and your posts for socials to stand out. All on brand.

With Canva you can upload your brand colors, your fonts, and logo. They offer hundreds of templates you can easily alter with your uploaded colors and fonts so everything’s in line with your small business branding. 

Canva really is a no-brainer for marketing. Not only is it a money saver, it’s a time saver. That’s a big win for small businesses.

5. Use Buffer to save time scheduling your socials

You can’t be on social media all day: you’ve got a business to run. Save time scheduling your socials by using Buffer. You can create a whole month’s worth of social posts for a variety of channels, plug them into Buffer, and have them go out on a schedule. Just set it and forget it.

Buffer offers free scheduling on three social media channels. Find out where your customers are hanging out online, create those posts in Canva, and then use Buffer to send them out. Voila!

Free tools to market yourself as an employer 

When people think of small business marketing, they think of marketing to customers. But one of the most overlooked marketing tools for a small business is its employees.

Employees are your first line in word-of-mouth marketing. They tell customers what it’s like to work for you. They encourage their friends to apply to work for you, bringing in more great talent.

Harvard Business Review did a massive study of Glassdoor data. Happier employees give better customer service. Better customer service leads to happier customers. Happier customers tell their friends and family about your business.

Yes, marketing brings in more customers, but your employees retain those customers.

Let’s explore two free marketing tools that can help make your small business an amazing place to work.

1. Foster meaningful workplace relationships with team communication

Studies have shown that friendships in workplaces create strong teams. Outside of scheduling people who actually like each other on the same shifts, offer them a work-appropriate (and monitored) place to communicate.

Homebase has a free built-in messenger tool that allows for easy team communication. You can communicate with your employees and employees can message to help each other at work, communicate important information, or organize a team outing.

2. Offer flexible pay options when your employees need it

There are many ways to work on employee happiness, but getting paid well and on time is at the top of most employee’s priority list. 

Homebase has Cash Out, a free tool that provides your team with early access to up to $300 of their paycheck. No liability and no cost to you. 

Having flexibility around their pay dates and not having to worry about payday loans or interest charges can really boost employee morale.

We know it may be a new marketing concept, but don’t underestimate the power of your employees being one of the best marketing tools for your business. Using free Homebase tools can help you prioritize their happiness while simplifying things for you.

Marketing tools for small business FAQS 

What are marketing tools for small businesses?

Marketing tools for small businesses are tools you can use to spread the word about your business. They’re tools you would use to get more potential customers to discover your business.

What are marketing channels?

Marketing channels are tools that help businesses market themselves to potential customers. They’re ways to get more eyes on your business. Free marketing channels include websites, social media, email marketing, and SEO traffic. There are also paid marketing channels like PPC ads, Facebook and Instagram ads, influencer marketing, and mass marketing with print or television ads.

Is it expensive to use marketing tools for my small business?

It doesn’t have to be expensive to market your business. You don’t need costly ad campaigns and mass media marketing if you’re just starting out, and they’re definitely not required. There are tons of free marketing tools on the Internet. Explore free options like Wix to build a free website to advertise your business. Or, explore free email marketing tools and social media marketing tools, like Canva and Mailchimp. Start small with free tools and as your business grows, you can move on to more expensive marketing tools.

Why do I need to market my business?

There’s no way around it: you need to market your business. Personal referrals are great—and they can go a long way—but if you want sustainability in your small business, you need more eyes on your business on the regular. The more people who know you exist, the more people will walk through your doors.

Want to scale up your small business?

Get Homebase and spend less time managing your team and have more time to grow your business. Get started with Homebase’s marketing tools for free.

The post The best free marketing tools for small business appeared first on Homebase.

PTO doesn’t only serve your employees, it also benefits you. A study by the American Psychological Association found that employees who took paid time off from work were more productive and produced higher-quality work. 

But PTO and PTO policies can be confusing for small business owners. There are many moving parts, not to mention laws and regulations you need to follow. Throw in that you’re creating a policy for hourly shift workers, and it can all be a bit overwhelming. 

We’re breaking down everything you need to know if you’re building a PTO policy for hourly workers. We’ll cover the following:

• The definition of a PTO policy
• The benefits a PTO policy offers your business and your employees
• The best way to calculate PTO for hourly workers
• What you need to include in your PTO policy

What is paid time off (PTO)?

Some employers offer PTO, or paid time off, a benefit that allows team members to take time off work while still getting paid. PTO can be given to salaried or hourly employees and can cover a range of reasons. Vacation, personal time, and sick days are all considered PTO.

With PTO, employers offer a total amount of time off from work that employees can use for any of the above reasons, no questions asked. PTO is different in every business, so creating a PTO policy for your small business is essential.

What is a PTO policy?

A PTO policy is exactly what it sounds like—a written guideline on your rules and regulations surrounding paid time off. 

Your policy should outline how much time employees have for a given period, how to request time off, the details of the policy, and any other information your employees may need to know about paid time off in your workplace. It’s important to have a PTO policy in place so that you and your employees are on the same page when taking time off work. 

PTO policies for hourly workers will look different than those for salaried workers. It’s unlikely that hourly workers will have unlimited PTO. However, it’s becoming more and more common for salaried employees to have unlimited PTO policies. 

While no federal or state law says you must offer your hourly employees PTO, it benefits your business and employees and is a great way to show you appreciate your employees. If you choose to provide PTO, having a written policy will make sure that everyone understands how PTO works and can help ensure your employees are taking their time off. 

The benefits of having a PTO policy for your hourly workers

Is the thought of spending an extended amount of time without your best employees sending you into a tailspin? Though it might seem like creating a PTO policy is setting you up to “lose” your employees, there are a lot of benefits to your business and your hourly employees. 

1. A PTO policy will help reduce unscheduled absences 

Lots of different reasons can keep employees from making it to work on a particular day—some can be scheduled in advance, while others, like sickness, can’t be planned. And while there isn’t much that can be done about illnesses that pop up unexpectedly, a PTO policy can help you avoid unscheduled absences for other reasons. 

Giving your hourly employees a clear PTO policy will give them the freedom and flexibility to schedule their days off. Dealing with a scheduled absence is much easier from an owner’s perspective. You can find the staff and resources needed to cover the absence in advance, meaning no late-night calls to try and cover or swap a shift.

2. Offering hourly workers PTO gives you a competitive advantage

Because the FLSA doesn’t require you to offer hourly employees PTO, having any PTO policy in place is a great way to give your business a competitive advantage when hiring and retaining the best employees.   

And when the average turnover rate in the US is at 45.1%, it’s always worthwhile to find ways to bring in high-quality employees and give them a good reason to stick around! This can greatly reduce turnover on your team, as well as boosting employee happiness and morale.

3. PTO can lower your administrative workload

When your employees are entitled to a certain number of sick, personal, and vacation days, it’s up to you to monitor how many days from each category are used by each employee. That can create a real headache for you when it comes to managing your administrative work.

With a PTO policy, your employees won’t have to categorize their requests, and you’ll no longer have to worry about making sure they’ve filled in their requests correctly—all time off requests are treated the same. 

4. PTO can help to improve employee work-life balance

Did you know that 68% of employees say they’re happier at work because their employers encourage taking PTO? Having a PTO policy in place encourages employees to take their PTO, which can help them maintain their work-life balance. And when your employees have a good work-life balance, they’re more likely to be successful in the workplace.

Think of your PTO policy as a way to allow your employees to accomplish everything they need inside and outside the workplace. 

5. PTO policies offer greater flexibility to your employees

With a PTO policy, your employees can take time off when they need it without having to provide a reason for why they need the time. Creating a PTO policy for your staff is you saying to your employees, “I trust you to take time off as you need it”. This also helps to build mutual trust between you and your employees. Make sure you effectively communicate your PTO policy to all your team members, ideally in a digital onboarding package. 

3 kinds of paid time off policies

There are different kinds of PTO policies. Each has its benefits and comes with a different level of trust between you and your employees. Only you’ll know which is best for your small business. Your company culture will help you determine which is best for you. 

Within the three main categories of PTO policies, some are better for hourly employees than salaried ones. 

1. Banked PTO policies

A banked PTO policy means an employee’s paid time off is taken from a single “bank” covering sick leave, personal days, and vacation. Employees aren’t required to give a reason for why they’re taking time off. They put in a request to withdraw time from the “bank”, and their time off is approved or declined (with reason). 

2. Open/unlimited PTO policies

Rarely associated with hourly shift workers, open or unlimited PTO policies mean that employees have no limit on how many days off they take as long as their work gets done. This isn’t often seen as an effective policy for hourly employees because of the nature of hourly work vs. salaried work.

A retail employee, for example, may help customers close their cash and restock the shelves during their shift. But when they clock in for their next shift, those same tasks must be completed again. 

3. Accrued PTO policies

An accrued PTO policy is when PTO is determined by how long an employee has worked for you. This can be calculated based on years of service or how many hours they’ve worked. 

The accrued type can define the accrual period (when PTO is accrued) and the accrual rate (how much PTO is accrued). An accrued PTO policy is the most common policy type for hourly workers. They can build PTO based on how many hours they work during a defined period. 

What to consider when creating a PTO policy for hourly and shift workers 

Creating a PTO policy for hourly workers is very different from creating one for salaried workers. This is mainly because salaried workers have a set number of hours, whereas hourly workers often fluctuate on the hours they work each month. 

When you set out to create a PTO policy for your hourly workers, it’s important to keep that in mind. That’s why you’ll most likely want to use an accrued PTO policy to calculate paid time off for your employees. You’ll also want to include an unpaid time off policy and understand the implication of labor laws regarding time off. 

How do labor laws affect your PTO policy?

As with everything in your business, your PTO policy should comply with state and federal laws and regulations. Here’s a breakdown of how to make your PTO policy compliant with laws such as the Family and Medical Leave Act (FMLA):

• Offer a minimum amount of PTO: In some states and municipalities, some laws require you to offer a minimum amount of PTO to your employees. For example, California requires you to provide at least 24 hours of paid sick leave annually. Look up your state’s requirements and create a policy that reflects those minimums.
• Protect their position: Both the FMLA and the Americans with Disabilities Act (ADA) require you to protect the job of workers who take leave. This means employees can feel secure in their employment when they take leave. When an employee returns to work, they’ll be reinstated to their previous or equivalent position.
• Provide notice: You must inform employees about their rights under state and federal laws and the company’s PTO policies—including the process for requesting leave. 
• Include unpaid time off (UTO) in your policy: Under the FMLA, you must provide up to 12 weeks of unpaid time off for certain family and medical reasons.

What’s unpaid time off all about?

Unpaid time off (UTO) is time away from work that an employee can take without receiving pay. Employees can use UTO much like they do PTO—when they’re sick, want to take a vacation, or have other personal obligations. 

Some medical and family reasons require you to offer up to 12 weeks of unpaid time off—be sure to include these in your PTO/UTO policy. But, you can also offer additional UTO so if employees haven’t accrued enough paid time off, they can still take the necessary time. 

When you’re deciding how you will include UTO in your PTO policy, ask yourself the following questions:

• Which employees will have access to unpaid time off, and for what reasons?
• How many days of unpaid time off can employees take in any given period?
• How will employees request UTO versus PTO?

Once you’ve answered these questions, include all this information in your PTO policy. 

What to include in your PTO policy for hourly workers

Now you’re ready to sit down and write your PTO policy. Include the below key things in your policy to keep you compliant and your employees informed. Let’s look at the five must-haves for your PTO policy for hourly workers.

• A deadline for requesting PTO: This can be defined however you’d like—7 days before, a month in advance, etc. Clearly define your deadline in your PTO policy and confirm workers know the deadline.
• How PTO is accrued or designated: Whether you’re using the accrual method or another method to calculate PTO, this should be clearly outlined in your policy. 
• What PTO can (and can’t) be used for: Again, this is up to your discretion. But it’s important to outline how employees are expected to use their PTO—think sick days, vacation time, personal days, etc.
• How will you handle unused PTO: Will PTO rollover? Will you pay it out? Decide what will happen to unused PTO and clearly define it in your policy.
• Your UTO policy: Include your UTO policy (which should include all of the above!) in your PTO policy. 

To make sure that all of your staff are aware of your PTO policy, it’s best practice to include it in your employee handbook—that way, you can feel confident knowing that every employee has a copy. 

Track and calculate PTO easily with Homebase

Set time off limits, blackout periods, and get help with labor law compliance — all in one place. Get started for free.

PTO policy FAQS 

What is a PTO policy?

A paid time off of PTO policy is a written guideline that outlines the rules and regulations surrounding paid time off at your business. Your policy should include how employees accrue PTO, how much time employees have for a given period, how to request time off, the details of the policy, and any other information your employees may need to know about paid time off in your workplace.

How does paid time off work for hourly employees?

Paid time off for hourly employees is most often calculated by the accrual method. For every hour they work, they accrue a certain amount of PTO. For example, if they work a 40 hour week and are entitled to 1 week of PTO, they can expect to receive approximately 0.02 hours of PTO for every hour they work. 

How can you track and calculate PTO for hourly employees?

Using Homebase, you can easily track and calculate PTO for your hourly workers. When your team clocks in and out in Homebase, we instantly calculate hours, breaks, overtime, and PTO—and sync it all to payroll to help you avoid mistakes. This makes it simple to track and calculate PTO in one centralized location. 

The post How to create a PTO policy for hourly workers appeared first on Homebase.

And since hey, we’re here to help, we’ll also share how your business can prevent it. 

What is time theft?

Time theft can be a result of many things. It comes down to an employee not working for all the time they’re supposed to, but being paid for it.

Time theft is considered an abuse of time in the workplace and can happen unintentionally or on purpose.

But sometimes, the reasons for time theft can be blurry. For example, you might have an employee who invites their friend to the coffee shop for a visit during their shifts. When it’s slow—and even when it’s not— they spend a chunk of their time behind the counter chatting. They get a gossip update, but counters don’t get wiped, and floors don’t get mopped.

Is this act of socialization considered time theft? Yes. But is it intentional time theft? That depends.

How was your employee was trained? What are the expectations set out by their manager? And does the team member recognize that they should be working instead of socializing, even in slow times?

This is why it’s so important for every team member to understand your work policies around what to do during slow shifts, why clocking in accurately is important, and how it impacts the success of the business. They need to know what can happen when time theft occurs—whether they mean for it to, or not.  

Time theft statistics 

Time theft adds up. Your team might think that 5 minutes here and there, or a late lunch every now-and-then doesn’t really matter. However, it can make a big dent on your budget and the morale of your employees.

According to website TotalRetail.com, 75% of companies in the United States lose money from a form of time theft called “buddy punching”. This is when a team member has a coworker clock in or out for them. It’s quite common, and not always done maliciously. Some employees do it to avoid reprimand, while others may believe they’re looking out for a friend.

Time theft can also be committed by the employer, but in a different form. This is called wage theft, and it’s when a business doesn’t pay an employee for things like overtime, working through their breaks, or when an employer asks a team member to come in early or stay a bit late.

Just like employee time theft, wage theft can be both unrealized and undocumented. Employees might not track the extra time they’re working, and without a proper way to do so, businesses might not either. In fact, the Economic Policy Institute, a nonprofit think tank, estimates that unreported wage theft could amount to as much as $50 billion per year owed to workers.

Any type of time theft can leave employees feeling a drop in morale. If a team member witnesses a coworker frequently showing up late, but still getting paid without reprimand because they’re “buddy punching”, they might feel resentment toward their teammates or the business itself, setting the foundation for a toxic workplace.

This is just one reason why time theft should be prevented at all costs.

4 types of time theft you can prevent

Time theft doesn’t always look like a villain running away with a bag full of money. In reality, it can look like an employee scrolling on their phone a little too often, or a team member clocking in for their friend who’s “just running 5 minutes late!”. 

Here are 4 common types of time theft that you can start preventing today. 

1. Buddy punching

Buddy punching is when a coworker is running late or doesn’t make their shift and asks a coworker to clock in for them. It can be done for a variety of reasons, but mainly to avoid losing wages or to avoid being reprimanded by a manager. 

2. Inflated time

When an employee says that they’ve worked longer than they have and gets paid for it, that’s considered inflated time. In a recent report, 43% of hourly workers who were surveyed admitted to exaggerating the amount of time they worked during their shifts. This type of time theft can be easier for offsite workers who don’t have to show up to a workplace or who are less accountable for their hours. 

3. Using the Internet

We know what you might be thinking. Isn’t the Internet a normal part of many jobs these days? Yes, but that doesn’t mean employees should be using it to do anything other than the role they were hired to do. Whiling away the hours on the Internet can include things like scrolling through social media, accessing personal email, online shopping, or just reading the news.

Make sure Internet and phone usage rules are clear for employees. They need to know the expectations of the business and what they can and can’t do on their shifts. For example, if you’re noticing that your employees have been texting instead of helping customers, you could implement a no-phone-on-the-floor policy

4. Taking longer or extra breaks

In a busy workplace, or one that doesn’t actively monitor an employee’s time, it can be difficult to know how many breaks employees are taking, and for how long they’re taking them. Even without actively monitoring team members, employers should always communicate expectations around breaks.

Explain what’s considered a break, how long they should be, what’s paid, and what’s not. The more you can clearly communicate your policies, the better employees can follow them. 

No matter your break policy, stick to it. If you talk about having hard and fast rules for breaks, your employees will notice if others are sliding by. Not only can that be bad for team interactions, but it has an effect on you as well. Your team won’t know when you’re serious about guidelines and policies and when you’re lax. Or worse—they’ll think you’re playing favorites.

Is time theft a crime?

We know about the different types of time theft, but is time theft actually illegal? Is it a crime?

The short answer is yes—time theft is considered a crime.

Time theft can be categorized as payroll fraud, which occurs when an employee steals funds from a business by falsifying timesheets. Examples could be:

• An employee clocking in too early or clocking out later than they’ve actually worked
• An employee not working during their scheduled shift
• An employee who takes too long of breaks or extra breaks
• An employee who has a has a friend punch in for them if they’re running or late or not showing up
  

According to Samfiru Tumarkin Law Firm, in Canada, non-unionized workers can be punished by their employer for committing time theft. Results include a team member being put on paid or unpaid leave and potentially terminated. 

From the employer’s side, committing wage theft carries a different penalty. If a business owner refuses to pay an employee for unauthorized overtime, they could be violating local and federal laws, like the United States Fair Labor Standards Act (FLSA). 

How to prevent time theft

There are many ways to prevent this, and not all require someone monitoring the break room 24/7. With the proper tools and rules you can make sure your employees are showing up when they should, and spending the shift actually working. 

Implement time theft policies

Implementing strong policies can start with communication. Talk to employees about the value of their time. Explain what happens when they’re on shift but not actually working, and what’s lost when team members have their coworkers clock in-and-out for them.

Ensure that employees know that these policies do more than prevent the loss of money, but that they’re there to build trust and transparency. Team members should feel open to communicating with their boss about any issues, including running late or missing a shift so they can get support, not reprimanded. 

Establish time theft repercussions

Once you’ve communicated time theft policies, explain to employees what happens if they don’t follow them. Document a formal write-up in their file, or consider assigning them less shifts for a set period of time. If it’s their first offense, try a direct conversation (but ensure it’s still documented).

Clearly communicate any repercussions, document them, and have your employees verify that they understand them. Including this feature in your onboarding package for new team members is a great way to ensure everyone has read the policy and digitally signed off.

Use tools to identify and prevent time theft

The best way to take control and prevent time theft is to use modern software solutions. This includes implementing tools like a GPS digital time clock, digital timesheets to prevent fraud, and messaging apps for teams so you can check in with employees if you notice they are clocking out late or showing up too early.

Homebase: your partner in preventing time theft

We know that it’s easier to push the idea of time theft out of your head. But as a business owner, it’s something that you need to be aware of and on top of. And because we know that you’ve got other things on your mind and on your plate, Homebase is here to help.

Sure, you could post signs reminding employees of how to correctly log time or provide a copy of the company’s policies as a reference. However, if you’re ready to go one step further, consider online business tools that are designed to prevent time theft. Even better: look for a tool that also supports team communication and workplace transparency. 

At Homebase, we’ve got exactly that.

Smart automated tools

Small business owners can partner with us for time tracking, automating timesheets and employee scheduling.

Our free time clock app can be downloaded to smartphones, iPads, computers, POS devices, and more. That way you can effectively track hours, breaks, overtime, and paid time off. 

Employees can use a unique PIN to log in. And if you need to, our time clock software can take a photo of the person clocking in so you know that the correct employee is signing in. That’s right: no buddy punching on our clock. 

On top of the prevention perks for you, employees get to save time since they won’t have to manually input their shift start or end times. It also helps prevent unintentional time theft for employees that clock in early by accident, or forget to clock out.

If you need help setting up prevention policies, Homebase has just the thing.

Skip the worry and set up your break and overtime rules to comply with federal, state, or city laws.  We’ll store all your time cards—including all edits—to help you comply with FLSA record-keeping rules. We’ll even send alerts when labor laws change at the state or federal level.

Need a bit more support? We’re here for you. That’s why we have certified HR Pros to review your policies.

Time theft FAQs

What is time theft?

Time theft is when an employee is being paid for moments during a shift that they didn’t actually work. It’s an abuse of time and can happen unintentionally or on purpose. Examples include an employee socializing too much, using the Internet for too long, or having another coworker clock them in if they’re running late or unable to show up for their shift.

Employees might not know that they’re committing time theft. In that case, they should know your expectations for the role, and how their contribution during their shift impacts the work they’re doing. It also affects the success of your business, and therefore their job.

Is time theft illegal?

Yes, time theft is illegal. It’s considered a type of payroll fraud. However, there aren’t federal rules in place to regulate how a company should deal with it, which means employers can decide how to take action.

That might mean a business gives an employee a warning, puts them on leave or terminates their employment.

What are some examples of misuse of company time?

Unfortunately, there are a number of ways to run the company’s clock that can be considered as time theft.

Buddy punching is an example, where coworkers clock in and out for each other to make up time or to prevent being reprimanded by their superior.

Other examples include over-socializing, which can happen when two or more employees talk or hang out on the job instead of working. Using the Internet for purposes other than work is also considered time theft, even though it can be unintentional.

How can companies prevent time theft?

Use modern solutions like digital time clocks, timesheets, and messaging apps to prevent time theft. This helps keep track of attendance, while letting you check in with employees who may be clocking in and out late or early, or unintentionally committing time theft.

By setting and communicating time theft policies with your employees, you can ensure they understand the value of their role, their time, and the impact they have on the business.

Team members should know how time theft is defined in your workplace, and the consequences of committing it. Employees should also know how their time is being tracked and monitored. Train your team properly on whatever time clock you are using in your business. 

Time theft is common, but doesn’t have to happen on your watch. With modern technology that’s easy to use for both you and your employees, you can take back control of the hours in your day, while letting your team do the same.

Is your business struggling with time theft? Get Homebase for easy scheduling, time clocks, payroll, messaging, HR, compliance, and more — all in one app. Get started for free.

The post How time theft is impacting your business (and how to fix it) appeared first on Homebase.

What is payroll management?

Payroll management is a lot more than making sure your staff is getting paid. While, yes, that is a core function of the job, payroll management is more like a process rather than a singular task. 

Payroll management is about managing employee salaries, benefits and taxes, and involves the tracking of employee hours, time off, benefits, and deductions, all before the final pay is calculated and distributed.

And that’s just the beginning. 

For shift workers, payroll management can be a little more complex. For instance, shift workers don’t always work the typical Monday to Friday, 9 to 5. Their shifts can fluctuate, and are often traded between team  members to better suit personal needs or scheduling conflicts.

Shift workers may also be subject to different laws and regulations, or policies by the business. In fact, U.S. federal law doesn’t mandate any employee vacation time for shift workers, which means that it can be up to the business owner to decide how employees  get paid, and what they’re covered for. This means that if it makes financial sense for your business to only pay full-time employees for vacation, it’s your decision.

No matter your choice, it all has to be managed effectively so your team  can get paid what they’ve rightfully earned.

Why is managing payroll important?

Managing payroll is important for a number of reasons. The first is team morale.

Without a properly managed payroll and a paycheck that’s on time, employees  may be left wondering when they’ll get paid, if their time is being tracked properly, or if your business is in financial trouble. When these questions arise, morale can drop. This can cause reduced productivity, decreased trust in the business, and less engagement from staff. Workers may even begin to look for another job.

The next reason why managing  payroll is so important is because it’s the law. As a business owner, you’re legally entitled to pay your staff on time. There can be different consequences for paying late depending on where your business resides. For example: 

• In California, employers are subject to a $100 penalty if they pay their employees’ regular pay late. 
• In Florida, employees can bring a civil theft claim against an employer when the employer hasn’t paid wages due. Before they file an action in court, they must provide the employer written notice of the claim and give them 30 days to pay the amount due.  

In addition to the legalities, managing payroll effectively is important because it helps with budget management. Depending on the size and scope of your business, paying your team  can be one of the biggest financial parts of what you do. With proper payroll management, you can track hours, time off, vacation, and more, and keep it all aligned with your overall budget.

The important role of the payroll manager

The payroll manager has an important role in a business. This role can often be assumed by the business owner, operations manager, accountant, or human resources specialist. No matter who takes on this important task, the overall objective remains the same: make sure all employees are paid accurately, paid on time, and that the business complies with all of the rules and regulations deemed necessary by their state. 

How to manage payroll

If you’re a business wondering how to manage payroll, we’ve got some good news and some bad news. First, the bad news: it can be a headache with a few too many steps. That is, if you take it on manually. 

If you plan to manage and run payroll manually, whether it’s restaurant payroll or payroll for salaried or hourly employees in another industry, you’ll need to know some important details before sending that check. Here are a few steps to get what you need in order. 

Collect employee data

Aside from collecting employee names, addresses, social security numbers, and tax withholding information, you’ll need to collect their hourly rate, gross pay, pay frequency, filing status, withholding information, and other deductions. 

Track hours

To manage payroll, you’ll need to have an accurate report of time worked in your employee’s  pay period. This includes breaks, vacation time, overtime, any sick days, and shift swaps with other employees.

Calculate employee pay

Once you’ve got your information and hours tracked, you can start with the math. Here’s how you’d figure out something like gross pay. 

First, figure out their hours worked during the semi-monthly pay period. Then multiply that by their hourly pay. For example, if your employee makes $10 an hour and worked 80 hours over 2 weeks, their gross pay would be $800.
From the gross pay, you’d subtract payroll taxes and other deductions, like benefits. It’s important to make sure you are deducting the right amount of taxes from each employee’s gross pay or you could face an audit from the IRS.

Issue the paycheck

The fun part! After you’ve calculated each employee’s pay, you’ll want to issue printed paychecks or direct deposit into their banks. According to the Society for Human Resource Management, about 18% of small businesses with revenue between $10 million and $20 million don’t use direct deposit. If you still like a good ol’ fashioned paycheck, you’re not alone. 

File taxes

The not so fun part. As a small business, you’ll have to file taxes based on your payroll. For example, at the end of the year, employers have to complete Form W-2, Wage and Tax Statement. This government form is so you can report wages, tips and other types of compensation paid to an employee. 

Common payroll management challenges

There are a number of common payroll management challenges that businesses might face as they work to pay their staff. Here are 3 reasons why it can be such a challenge to do on your own. 

1. Information overload

There are many factors on both the federal and state level you need to remember when preparing your payroll, especially for hourly employees.

Part of this role is to keep track of and calculate a lot of changing information, like hours worked, breaks, overtime, and PTO. Depending on how these are tracked originally, this could be done a number of ways like Google Sheets or Excel, or even pen and paper. Either way, you’ll need to make sure employee hours are verified and approved by their manager.

2. Not enough time

You know the saying, “You have the same amount of hours in the day as Beyoncé”? We’re going to be honest: nobody has the same amount of hours as Queen B. Especially business owners who are managing payroll on their own.

If you’re managing payroll with manual tools like Google Sheets, Excel, or pen and paper, you’ll have even less time on your plate to do everything you need to run your business.

3. Uncertainty about documentation and taxes

Once you’ve gathered all of the information you need, it’s time to organize and store it. This step involves a lot of admin work. You’ll need to coordinate information about Employment Insurance (EI) along with withdrawals and deductions that need to go to various government and insurance companies.

After that’s covered, you’ll need to provide each employee with a detailed overview of their payroll. This includes the hours they’re getting paid for, their hourly wage, a breakdown of benefits and subsequent withdrawals.

The role of a payroll management system

A payment management system, sometimes called a PMS, is software that can help your business manage payroll efficiently and effectively. Its primary role is to process and track payments without errors, making your day a lot simpler.

It might sound like an easy job, but there’s a lot that goes into it.

Like organization, for example. A good payroll management system should set up your roster and store employee information, including emergency contacts, certifications, birthdays, and start dates. It should organize all employee e-sign forms, and safely store their documents online. Depending on your software, you might even use it to share schedules, send messages, and get your team in sync.  

Some payment management systems are designed to give your employees a bit more autonomy. For example, the Homebase app gives your team on-demand access to their hours, schedules, earnings, pay stubs, and W-2s. Employees can receive payday notifications, so they know when they’ve been paid, and they’re able to submit and track time-off requests, and work with each other to trade and cover shifts.

Homebase for payroll management

Okay, we’ll admit it. There are a lot of complicated steps to successfully running payroll while staying compliant and paying everyone accurately. But remember when we said there was good news? Here it is.

You don’t have to do payroll management on your own. There are online payroll solutions that offer full-service payroll features out there… like Homebase.

“I love the simplicity, the time tracking, and the payroll system itself,” says Homebase customer Rob Graft, Owner of Nemesis Industries in Colorado. “It’s so much easier than anything I’ve used in the past… it’s worth every penny, and it’s super simple. I’ve run payroll from literally sitting on a horse, moving cattle, and submitted my payroll.”

Homebase payroll automates the entire payroll process for you, reducing the hours you spend doing things manually. We’ll even run payroll summary reports for you, which can be tedious on their own.

When it comes to the nitty gritty stuff, Homebase helps you set up breaks and overtime based on  your state to calculate hours and wages correctly.  You can even calculate, pay, and file your payroll taxes in a just few clicks.

With Homebase, you can also  automatically submit any new hire reporting and files, and distribute W-2s and 1099s. Plus, Homebase stores your time card records to help you stay compliant with FLSA record-keeping rules.

Our payroll services can also help prevent payroll fraud among your team members by catching any manipulations or mistakes they may have made to increase their pay. Hey, it happens. 

Payroll management FAQs 

What is payroll management?

Payroll management is a process that requires a lot of steps, tracking and documentation. It’s about managing staff salaries, benefits and taxes, and involves the tracking of employee hours, time off, benefits and deductions, all before the final pay is calculated and distributed.

What is the role of a payroll manager?

A payroll manager has the role of making sure all employees are paid accurately, on time, and while complying with all of the rules and regulations deemed necessary by their state. In a small business, the payroll manager may be the owner, manager or accountant. 

What are the steps in the payroll process?

If you’re managing payroll, there are a few key steps you’ll need to consider. First, you’ll want to collect all employee data. This includes names, addresses, social security numbers, and tax withholding information. You’ll also need employee hourly rates, gross pay, pay frequency, filing status, and other deductions for things like insurance.

The next step is tracking hours, and doing so accurately. This part includes tracking breaks, vacation time, overtime, sick days, and shift swaps. You’ll want to make sure these times are verified by managers, too.

Once this information is collected, the payroll calculations can begin and employees can get paid, either with a paycheck or direct deposit.

You’ll need to remember to document everything for tax time. For small businesses, filing taxes based on payroll is a must-do. This means completing tasks like filling out Form W-2 at the end of the year to report wages, tips, and other compensation paid to employees.

What’s the difference between HR and payroll?

Human resources (HR) and payroll are two separate things. HR is responsible for business operations like recruiting and hiring employees, managing and coordinating benefits, employee compensation, and developing policies that support the success of a business.

Payroll is a little different. It makes sure that employees are paid accurately and on time. It also takes care of taxes, manages the deductions, and ensures that procedures are compliant with all laws, including local, state, and federal. 

You don’t have to be an HR professional or an accountant to run payroll, but as a small business, you might be wearing many hats and taking on many different tasks. If that’s the case, take a break with an app that does that hard stuff for you.

Ready to modernize your payroll? Get started with Homebase today.

The post Payroll management: What every business needs to know appeared first on Homebase.

Time management can have a profound impact on our productivity, especially in the workplace. And we’ve got some surprising stats to prove it.

Keep reading as we cover the basics around time management and why it matters for your business. And of course, we’ll share some of our favorite tips and tools to elevate your team’s time management skills in no time.

What is time management?

Put simply, time management is the art of optimizing your time to achieve your goals. 

We all have a limited number of hours in a day—24 to be exact. And there’s only so much time we can dedicate to work and other activities. While we can’t make more hours in the day, we can take steps toward making the most of that time. 

Time management uses careful planning and prioritization to help divide your time between all the different things on your to-do list.

While we all like to believe that we manage our time well, the truth is that most of us don’t. Especially when it comes to the workplace. According to Forbes, between social media and other distractions, employees can waste as much as two hours a day at work.

Poor time management often slips through the cracks—especially when it seems like work is still generally getting done. But with a few time management improvements, just imagine what your team could accomplish if you leveled up your business’s time management skills.

Why is time management important?

Time management helps us work better and smarter. But when businesses don’t prioritize time management, it can have a significant impact on employee productivity and overall business operations. 

When time management isn’t a priority, it can create:

• High levels of stress and burnout: When employees and teams don’t manage their time well, productivity takes a hit. This means goals can take much longer to reach than expected. A growing to-do list and the stress of not meeting expectations is the perfect storm for creating employee stress and burnout. 
• Inefficient employee scheduling: When time isn’t being managed properly, you can’t get an accurate grasp on the time it takes to complete tasks. This makes creating optimal schedules difficult, often resulting in over or understaffing shifts.
• Increased operating costs: It’s true what they say—time is money. Wasted time and resources can cost you a pretty penny. When employees aren’t producing what’s expected of them during their scheduled hours, it can cost businesses in overtime and extra working hours. 

Fortunately, investing time into time management can help your team get ahead.

The benefits of good time management

When there are 100 things on the go, it can be difficult to carve out the time for time management. It can often feel counterproductive—like it’s eating up precious time that you don’t have.

But the time you take to plan and re-prioritize can be game-changing and help you get more done faster. 

Here are some ways small businesses can benefit from practicing good time management skills.

• • Saved labor costs: Making better use of time means that businesses can achieve more in less time. According to a Homebase customer survey, 1 in 8 small business owners have cut down costs to save over the last six months. Many have opted to limit inventory, services, or hours of operation to account for inflation and other rising costs. These types of cuts can impact revenue. But if you can get more done with the same or less labor, you’ll save without impacting your customers.
  • Better job satisfaction: Most employees want to put their best foot forward at work. Proper time management can help them do better work. Employees are also happier and more content with their role if they feel that sense of accomplishment—which can also cut down on employee turnover.
  • Improved customer experience: Efficient teams can respond to customers quickly and more effectively. This helps build better relationships with current and future customers.
  • Stronger team culture: When teams collectively believe in working smarter, not harder, employees are less likely to feel burnt out. It also builds a culture where employees work together toward a common goal, which can cut down on toxic workplaces. When employers prioritize time management, it shows that they’re looking for ways to reduce unnecessary work for their employees.

8 time management stats to help you improve your time management

Time management helps build winning teams and grow successful businesses. 

Don’t believe us? These stats about time management make it clear that time management is a must for every small business.

Labor is the number one cost for businesses, accounting for 70% of spending

Labor costs are what you pay for your employees’ time. With labor being one of the highest costs for small businesses—it can account for up to 70% of spending—time is one of your most valuable assets. That’s why it’s so important that it doesn’t go to waste. And yet…

The average worker spends 51% of every workday on low to no-value tasks

Low or no-value tasks are things that don’t contribute in a meaningful way to your overall business goals. These tasks can often be repetitive or redundant, yet take up over half of the average employee’s workday.

For example, a restaurant employee who’s taking inventory of takeout containers for the sixth time today is performing what could probably be considered a low-value task. 

Overstaffing and lack of direction can often lead employees to spend their time on low-value work.

Imagine how much more your team could accomplish if that time were reallocated to things that could actually propel your business forward.

82% of people don’t have a time management system

Most of us recognize the importance of time management, but few of us put the systems in place to make it happen. 82% of individuals don’t have a structured time management system in place.

A time management system is a process or approach to managing your time. It’s a proven method of helping you divvy up tasks and prioritize them based on your goals. Some common examples of time management systems include the Eisenhower matrix and the Pomodoro method. 

Have we piqued your interest? We’ll cover both of these in detail below.

The average person checks their phone 96 times a day 

We all love to roll our eyes at those pesky screen time reminders. But this number shows that we probably need them. Whether we’re checking our emails or social media, this equates to us reaching for our phones approximately every 10 minutes. 

Our phones provide so much value and can help us be productive. But they can also be a major source of distraction. If employees are spending hours of their work day scrolling through Instagram or texting their friends, that’s a lot of time lost on your company’s dime.

Meetings cost companies of all sizes millions of dollars a year

We’ve all had those meetings, you know, the ones that could have been an email. Turns out those meetings are pretty expensive—costing small companies up to $2.5 million a year.

Of course, there are situations where meetings can be valuable. But as a general rule of thumb, meetings can be extremely inefficient. This is especially true in businesses with hourly and shift workers where gathering the entire team can get pretty tricky.

Instead, use a team communication platform to easily get critical information to the right people without gathering everyone in a meeting.

The average employee spends up to 9% of their year switching between different apps

Yikes—that’s almost 200 hours a year dedicated to navigating between platforms at work. This doesn’t even account for the time that our brains spend context-switching during the day.

Taking advantage of app integrations and other solutions can help your team reduce the amount of time spent going back and forth between different tasks and apps.

20% of workers say they waste time at work because they’re bored or aren’t interested in their jobs

If employees are bored and unstimulated, they probably aren’t making the most of their time at work. Boredom can happen because they aren’t engaged in their work or they simply don’t have enough work to do.

Bored employees might spend time on their phones or chatting with other employees during their shifts to pass the time. And as you can probably guess, these employees are typically less productive and produce lower-quality work. With 20% of employees wasting time out of boredom, it can cost a pretty penny.

1 in 4 businesses want to invest in operational efficiency in 2023

We love to see small businesses investing strategically to help set themselves up for future success. According to a recent Homebase survey, improving operational efficiency is an important growth strategy for small businesses this year.

When a company uses its resources efficiently, it can reduce waste and save money. A large part of operational efficiency is making sure that their team and resources ) are being used effectively—without affecting the quality of output.

Investing in time management is just one way that businesses can get closer to achieving operational efficiency.

How you can improve time management in your business

The numbers don’t lie: time management is a common struggle among businesses of all sizes. But the good news is that it’s a problem that can easily be solved with the right time management strategies and tools.

Unlock more time for your team with these tips for improving time management skills within your business.

1. Define your business goals

You can’t properly prioritize your time if you don’t know what you’re working toward. Effective time management requires you and your employees to have a solid understanding of your objectives.

Business goals can range from improving revenue, raising customer satisfaction rates, or even building brand recognition. 

Understanding how their day-to-day tasks ladder up to overarching business goals can also build a sense of purpose among employees. Clarity around business objectives can also lead to higher rates of job satisfaction and employee happiness.

2. Conduct regular time audits

A lot of teams fall into the trap of not really knowing what they’re spending their time on. And as a business owner, you deserve to know where your money is going.

Regular time audits can give you insight into what your team is working on within a given period of time. With a time audit, you use time tracking to get a detailed log of what everyone is doing.

The goal here isn’t to micromanage your team—and trust us when we say that won’t help improve productivity. Rather it’s to get a better understanding of work habits and how you can better use your employee’s time. 

Time audits can answer questions like:

• What tasks are taking up most of your team’s time?
• How long does it take to complete a specific task? And are you allocating too much or too little time for it?
• Are there projects that aren’t worth spending time on?
• Are there higher-value tasks or projects your team could be working on?
• Are there any time trends and patterns that need attention?

By regularly performing time audits, you can also track efficiency improvements over time.

Time-tracking tools like Homebase make it easy to track the hours your team works and conduct audits. With Homebase’s free time clock app, employees can easily clock in and out, right from their phones. A more accurate time tracking system gives you better control over the time your team spends at work and the associated labor costs. 

3. Implement time management techniques and systems

For most folks, time management doesn’t come naturally. It can take a bit of time and practice to get to a point where you’re using your time well.

Of course, you theoretically could manage your time in your head. But time management systems are structured processes that are proven to improve your productivity. They’re tools that make the task decision-making process easier and help you stay productive.

Time management systems also foster a sense of transparency among teams. It makes it clear who’s doing what and why, which contributes to a sense of belonging and a culture of teamwork.

Not sure where to start? Here are some popular time management systems you can try with your team.

Eisenhower Matrix

This system divides your tasks into 4 quadrants that help you determine what tasks to prioritize. 

Depending on which quadrant your tasks fall in, you can either tackle them now, delegate, or push them to a later date.

Pomodoro method

The Pomodoro technique helps minimize distractions and keep employees focused. The system prioritizes scheduled, intermittent breaks.

For example, an employee will focus on work for 25 minutes, then take a 5-minute break.

By scheduling breaks, it’s easier to avoid employees checking their phones every 10 minutes. If they know they’ll have 5 minutes to do it later, it can help them stay focused on the task at hand.

Time blocking

Especially in fast-paced environments, like restaurants or retail, a lot is going on at once. It’s easy to find yourself pulled in 100 different directions. Time blocking helps your team focus on one thing at a time.

With time blocking you start with a list of tasks. Then you estimate how long each task will take and assign a block of time where you’ll work on that specific task.

Time blocking creates a concrete schedule. This reduces the need for context switching and makes it easier to avoid distractions and interruptions, like emails or other minor tasks.

Employers with hourly employees can build the concept of time blocking directly into employee schedules. By assigning specific tasks and roles ahead of time, employees can stay focused on higher-value tasks during their shifts.

4. Prioritize effective scheduling

To an extent, you can empower your employees to manage their time while on shift. But how you schedule your employees is critical for setting them on the path to success at work. Otherwise, you might find yourself with a bunch of employees sitting around twiddling their thumbs—and no one wants that.

Here are some things that you can do to effectively schedule your employees.

• Factor in sales and customer volumes. Make sure that you’re scheduling the right number of employees based on the expected work. Overstaffing often creates situations where employees are stuck working on low-value tasks. On the other hand, understaffing can cause employees to go into avoidable overtime and result in a lower quality of work.
• Provide clear shift details, including start time, end time, and scheduled breaks. This can help employees show up on time and better manage their time during their shifts. Advanced notice and flexible scheduling can also help improve employee morale and satisfaction, which in turn impacts productivity.

5. Automate tedious and repetitive tasks

Business owners and employees often find themselves working on tedious and time-consuming tasks. Where possible, consider implementing tools and technology to free up that time for more important tasks.

For example, payroll and time tracking can be something that takes up a lot of time for business owners. Instead, say goodbye to manual tracking and use an all-in-one automated employee management platform. Built-in automations and integrations will save you time, and reduce the need for constantly moving between a bunch of different platforms.

The same principles apply to your employees as well. Use technology and tools to make it easier for them to spend their time on higher-value work. For example, sending out communications using a team communication app is an easy way to save on unnecessary meeting hours.

6. Minimize distractions

We live in a world of distractions, particularly those of a digital nature.

Getting distracted is normal—we’re only human after all. But when we’re interrupted, we tend to lose our focus. It can take a lot of energy for distracted employees to return to their work.

By minimizing distractions in the work environment, it’s easier for employees to stay on track with the task at hand. 

Some ways to minimize employee distractions include:

• Limiting personal phone use while on the clock
• Providing regular breaks to help employees stay focused
• Setting shift goals to give employees something to work towards
• Keeping workspaces clean and organized

Simplify time management with Homebase  

If time management feels a bit daunting—we get it. But we promise that the time and energy you invest in time management for your team is worth its weight in gold.

Plus, we’ve got a not-so-secret weapon that will make managing your employees’ time a breeze: Homebase.

Homebase is trusted by over 100,000 small businesses to better manage their employees.

Make scheduling hassle-free by creating employee work schedules in just a few minutes. Assign roles and schedule based on sales forecasts, so you’re making the best use of your employees’ time while they’re on the clock.

And when it’s time for their shifts, our time clocks give you the confidence of knowing exactly who’s clocking in, when, and where. You can also track sales against hours worked so you can get the insights you need to optimize your labor costs.

And of course, we’re here to help you empower your employees to take control of their own time management from day one. Documentation, including time management resources, can be sent directly to employees in their digital welcome packets.

Need help with time management?

Get Homebase, and start optimizing your time with top-rated scheduling, time clocks, messaging, payroll, HR, and more. Get started for free

Time management FAQS 

What is time management?

Time management is a combination of planning and prioritization that helps you make the most of your time. The goal is to achieve your goals as efficiently and effectively as possible. Typically, time management includes balancing urgency and impact to help prioritize all the things that need to get done.

Why is time management important to businesses with shift workers?

Time management is important for shift workers and hourly employees because they’re paid based on their time spent at work. So if time is being wasted or used inefficiently due to poor time management, businesses can quickly incur additional costs to make up for the additional work.

How can you improve your time management?

To improve time management, it’s essential to start by understanding your overall business goals. After which, you can implement time management systems to help you and your employees prioritize tasks and activities that will help you achieve those goals.

Better employee scheduling, more automation, and regular time audits are all ways businesses can improve time management skills within their teams.

Can an app help you make time management easy for your employees?

Yes—an app can help you make time management easier for your team! Incorporating apps and technology are some of the best ways to improve how your team uses their time. You don’t need to figure out time management all on your own. Businesses love apps like Homebase that help streamline employee scheduling and time tracking. It helps save on labor costs and frees up time for tasks that bring more value to the business.

The post 8 time management statistics every business should know in 2023 appeared first on Homebase.

A shift trade app can help employees manage schedule changes directly — and make things more organized and efficient in the process. How? Supervisors start by setting custom rules to make sure all changes follow the policy. Then, employees coordinate shift trades with their teammates and submit their swaps for approval, which managers approve or deny with a click. And the best part? The tool is usually built into your scheduling or team management platform, so you don’t need to spend money on more software. 

It’s the kind of tool managers can’t live without once they try it. But with so many shift trading platforms available, where do you begin? To save you from an overwhelming Google search, we’ve put together a list of our top six picks for 2023, comparing each based on best use case, top features, pros and cons, and pricing. 

Key features to look for in shift trade apps

Unlike other types of software, shift trade tools don’t usually come as standalone apps. They most often belong to a suite of products that are included within a scheduling platform. Still, some solutions stand out when compared with others. Besides shift swapping capabilities, the best software includes: 

• Open shift posting — A great shift trade app should let you share open shifts when you publish your main team schedule. That way, employees can claim available shifts, saving you from assigning them to employees who can’t or don’t want to work.
• Built-in chat — Finding a replacement usually means tracking down phone numbers and emails so teammates can reach out and coordinate the changes they need. Built-in messaging helps the team communicate in one spot and allows managers to make announcements, coordinate tasks, and keep staff on the same page throughout the day.
• Interconnected staff management tools — The more features your app has, like time tracking, payroll, scheduling, employee happiness, and HR and compliance, the more versatile it is. When all the tools you need to manage your team are in one place, it also prevents you from having to pay for separate platforms that don’t cooperate with each other.
• Alerts and notifications — You don’t want shift trade requests to get lost in the shuffle, so be sure your app of choice sends notifications when employees submit swaps for your approval. Another plus is when the platform alerts your entire team about schedule updates and changes so everyone stays up to speed.
• Easy to use and intuitive — You probably don’t want to add to your to-do list with training, so the easier the tool is to start using, the better. It’s ideal when it only takes a day (or less) for team members to get comfortable with an app. You should also prioritize a system that makes it easy for managers to approve or deny trade requests and keeps their involvement to a minimum.
• A wide range of integrations — You might be using software for point of sale (POS) transactions, e-commerce, accounting, budgeting, and reporting. Avoid repeated data entry and costly errors by checking that your shift trade app integrates smoothly with the tools you already rely on and trust.
• A mobile app — You’ll want your team to be able to check the schedule and get important shift updates — whether they’re at work, in transit, or on the go. An ideal shift trade tool should have a dedicated mobile app that has the same functionalities as the desktop version, so your team can use it from anywhere.
• Free or affordable plans — The app that’ll work best for you depends on your budget, business needs, and team size. But ideal platforms include a free plan. Homebase’s free account includes basic scheduling and time tracking tools for up to 20 employees at one business location. We also offer per-location pricing, so your subscription won’t become unmanageable as your team grows.

Our top shift trade app pick for 2023 (+ the rest compared)

Homebase isn’t just a shift trade app — our platform has all the tools you need to run a small business team in 2023. That’s why it’s our top pick.

With our app, administrators can post open shifts at the top of every schedule and find cover quickly. Employees can also ask for substitutes directly from their schedules on the mobile app. And there’s no need for team members to text coworkers or shift supervisors when they’re sick or have an unexpected conflict.

On top of that, Homebase has built-in features for time tracking, full-service payroll, team chat, hiring and onboarding, and HR and compliance — all available with our per-location paid plans.

Still, other apps may have specific features that will be more useful to you. For example, tools like 7shifts are designed specifically for managing restaurants. There are also apps like Coast, which is a solid option for business owners who need dedicated task management and checklists.

That’s why we’ve broken down our list based on best use case:

1. Homebase: Best all-in-one solution
2. Deputy: Best for labor compliance
3. Connecteam: Best for remote or moving teams
4. ZoomShift: Best for team accountability
5. 7shifts: Best for the restaurant industry
6. Coast: Best for assigning tasks with shifts

Comparison chart: Top 6 shift trade apps in 2023

Software	Pricing	Free plan	Mobile app	Shift trading	Scheduling	Time tracking	Payroll
	Plans range from free to $99.95 per location per month.   Save 20% on all plans if you sign up for annual billing.	✓	✓	✓	✓	✓	✓
	$3.50 for Scheduling, $3.50 for Time and Attendance, and $4.90 for Premium.	✗	✓	✓	✓	✓	✗
	Plans range from free to $119/month.	✓	✓	✓	✓	✓	✗
	Plans range from $2.50/month per user and $5/month per user.	✗	✓	✓	✓	✓	✗
	Plans range from free to $99.99/month per location.	✓	✓	✓	✓	✓	✗
	Plans range from free to $38/month per user.	✓	✓	✓	✓	✓	✗

A breakdown of the 6 best shift trade apps

1. Best all-in-one solution: Homebase

Homebase is an all-in-one staff management and HR app designed for hourly teams. We know how chaotic coordinating shift trades can be, which is why we’ve made our app super easy to use from anywhere.  Plus, it’s customizable so you can set up controls to avoid overtime and ensure the right roles are staffed, even with trades. 

In addition to shift swapping, Homebase makes small business management more streamlined with tools for scheduling, time tracking, payroll, hiring and onboarding, team communication, and HR and compliance. 

Top features

• Easy-to-use shift swapping features
• Customizable shift trading rules
• Open shift posting
• Built-in team messaging so staff can coordinate trades and get in touch with each other
• Automatic employee notifications when schedules are published
• No show, late clock in, and late clock out alerts for managers
• User-friendly schedule builder with auto-scheduling and template tools
• Mobile time tracking, complete with geofencing tools
• Hiring and onboarding templates, dashboards, and workflows
• An extensive library of HR templates, guides, and training materials
• Built-in, full-service payroll

Pros and cons

Homebase users find our platform user-friendly, which is great for teams with different levels of tech-savvy. Managers get notified when employees request a change, which means less time spent as the middleman. They simply have to deny or approve all requests, and when they make changes to the schedule, their team automatically gets alerted via text, email, and the Homebase app. 

And although it lacks task management tools, Homebase makes up for that with built-in chat features.

Managers can use the messaging tool to get in touch with individual staff members, specific groups, or the whole team with announcements and updates. But employees can also message each other and coordinate swaps without having to track down contact information — allowing for more efficiency (and privacy!).

Pricing

Homebase’s basic scheduling and time tracking tools are completely free. But, if you want to maximize efficiency and get the most out of our platform, we offer the following paid plan options:

• Basic — Free for one location and up to 20 employees. It includes basic scheduling and time tracking, employee management tools like messaging, point-of-sale integrations, and access to email support. 
• Essentials — $24.95 per month per location. Everything in Basic, plus payroll integrations, team communication, performance tracking, advanced time tracking and scheduling, and access to live support.
• Plus — $59.95 per month per location. Everything in Essentials, plus hiring tools, retention and performance tracking, time off controls, and departments and permissions.
• All-in-one — $99.95 per month per location. Everything in Plus, with HR and compliance, new hire onboarding, labor cost controls, and business insights.

Users can also save 20% on their overall cost when they sign up for an annual plan.

2. Best for labor compliance: Deputy

Deputy combines features for scheduling, time tracking, and compliance in one platform. Its shift trading features give managers the option to send employees open slots based on the app’s recommendations. Or, they can let staff arrange coverage on their own.

Top features

• Shift swapping tools
• Time tracking
• Schedule builder
• AI-powered auto-scheduling capabilities
• Employee profiles
• Mobile time clock app
• Labor cost dashboards
• Compliance tools

Pros and cons

Deputy uses AI capabilities to help managers plan schedules based on predicted sales, upcoming delivery orders, and foot traffic data, which allows them to avoid overstaffing or understaffing. It also lets administrators set compliance rules for all shift swaps so that team members can’t make trades that’ll result in overtime, for example.

However, Deputy isn’t a comprehensive team management platform. Committing to a paid plan means you’ll still need integrations for communication and payroll. 

Pricing

Deputy has a Scheduling plan and a Time & Attendance plan for $3.50 per user per month. Its Premium plan lets you combine both Scheduling and Time & Attendance for $4.90 per user per month. 

3. Best for remote or moving teams: Connecteam

Connecteam’s platform is ideal for any team that’s always on the go. It offers tools for scheduling, time tracking, communication, and labor compliance and is designed so you can use all of its features from your mobile device. 

Top features

• Shift reminders and self-service shift swapping features
• Schedule builder with shift duplication and template tools
• Task management with forms and checklists
• GPS-enabled time tracking
• Team messaging
• Labor and compliance tools
• Employee surveys

Pros and cons

While some platforms have hard-to-find shift swapping tools, Connecteam shift trading is easy to navigate. Users just have to go to their shift details, click Find Replacement, and a list of possible options will appear in a drop-down menu. Then, they simply click on an employee’s name to request a trade — there’s no need to send a mass text asking for a substitute.

However, Connecteam’s pricing model isn’t straightforward. Rather than offering simple tiered plans or per-feature pricing, it groups its packages into “hubs,” making it hard to get everything you need.

Pricing

Connecteam offers three “hub” packages: Operations, Communications, and HR & Skills. Connecteam’s Operations hub comes with scheduling, time tracking, and task management features, and the plans include:

• Small Business — Free for up to ten users.
• Basic — $29 per month for up to 30 users. Extra users are $0.50 per month.
• Advanced — Everything in Basic, plus extra features like time tracking tasks. $49 per month for 30 users. Extra users are $1.50 per month. 
• Expert — Everything in Advanced, plus GPS features and automation. $99 per month for 30 users. Extra users are $3 per month.

4. Best for team accountability: ZoomShift

ZoomShift is a shift planning, scheduling, and time clock software that makes tracking employee time more efficient. And because it also has timesheet tools, ZoomShift makes the payroll process faster, too.

Top features

• Open shift posting
• Shift swapping
• Time tracking with geofencing
• Scheduling with reusable templates
• Time off management
• Timesheets for payroll

Pros and cons

Although it doesn’t have an in-app chat, ZoomShift allows employees to leave notes explaining why they need to trade shifts. This increases transparency though your employees will still need to text or call their teammates to coordinate the logistics of the trade. 

The platform also tracks employee time, turns it into timesheets, and takes care of your wage calculations before payday. Then, you can simply export the data to a third-party payroll platform.

Unfortunately, some users say ZoomShift’s customer service has declined in the last few years, so it might not be the best option for a small business owner who needs extra support.

Pricing

You can try any ZoomShift plan for free for 14 days. Otherwise, paid options include:

• Starter — Scheduling, time tracking, and PTO management for $2.50 per user per month.

• Premium — Overtime management, advanced scheduling tools, geofencing, timesheets, and advanced reporting for $5 per user per month.

5. Best for the restaurant industry: 7shifts

It’s not just 7shifts’ branding that makes it a good fit for the restaurant industry — the platform also caters to industry-specific needs with features for scheduling, time tracking, team messaging, hiring and onboarding, training, and tip management. 

Top features

• Shift trading
• Staff scheduling
• Time tracking
• Team communication
• Hiring and onboarding tools
• Document storage
• Training and task management
• Payroll integrations
• Tip management and payout tools

Pros and cons

Shift trading is a frequent occurrence in the restaurant industry, and 7shifts makes it easy for managers to stay on top of it. With the shift pool dashboard, administrators can view, approve, or deny all swap requests. 

The platform is also handy for businesses with multiple locations, roles, and levels of management because it prevents team members from trading shifts with anyone outside of their position, department, or job site.

Additionally, 7shifts users appreciate how well it integrates with top POS systems, an essential feature for today’s small restaurants and cafes. However, 7shifts doesn’t have a built-in payroll product, although it integrates with popular software like Gusto and QuickBooks.

Pricing

7shifts has a free plan for single-location restaurants and offers basic scheduling and time tracking features. Otherwise, paid plans include: 

• Entrée — Labor costing and performance management for $34.99 per location per month.

• The Works — Shift feedback, geofencing, buddy punch prevention, and payroll integrations for $76.99 per location per month.

• Chef’s Choice — Labor compliance tools for $99.99 per location per month.

• Gourmet — Advanced customization and dedicated support for $150 per location per month.

6. Best for assigning tasks with shifts: Coast

With dedicated display widgets for quick access to tools, Coast is designed to help keep staff on task. Besides features for shift swapping, scheduling, time tracking, and chat, Coast provides tools for delegating assignments to any kind of team.

Top features

• Shift swapping tools
• Employee scheduling
• Time tracking
• Recurring tasks and checklists
• Team chat
• Inventory management
• Maintenance tracking and tasks

Pros and cons

Coast’s shift swapping features work similarly to other options on this list, making the platform another viable option for small business owners. One advantage of Coast, however, is its recurring task tool, which lets you assign smaller jobs along with shifts. And when employees use Coast’s mobile app, they get alerts when tasks are pending, so nothing is ever left unfinished.

Like 7shifts, Coast is also a fit for the restaurant industry, particularly those with busy kitchens that need more maintenance management tools. For example, the app lets managers schedule and delegate tasks in the form of work orders to their maintenance or repair crews with built-in notifications and due-date reminders.

The downside is Coast’s maintenance and work tools are costly, so it may not be accessible for small businesses with limited budgets who don’t want to pay on a per-employee basis.

Pricing

Coast offers two kinds of plans (and each one has a free option with limited tools): 

• The Basic plan for team scheduling and chat features
• The Premium plan for maintenance work orders

The Basic tiers include:

• Starter — Team collaboration tools for $2 per user per month.
• Pro — Reports and productivity dashboards for $4 per user per month.

The Premium tiers include:

• Starter — Team collaboration, maintenance, and work order tools for $22 per user per month.
• Pro — Everything included in Basic Pro, plus maintenance management for $38 per user per month.

Revolutionize your team scheduling with Homebase 

Shift trade apps are essential for any business owner who has ever panicked about scheduling. And they make the work experience easier for shift workers as they can rest easy knowing there’s always a plan B if they need to reschedule. 

But out of all the options out there, Homebase is a clear frontrunner. Our free plan has basic scheduling, time tracking, and messaging features for up to 20 employees at one business location. And for larger teams, our per-location pricing will keep costs low as you hire more staff.

Homebase is also the most comprehensive option on this list — we offer hiring and onboarding, team communication, employee happiness, payroll, and HR and compliance tools, making our platform the best choice for independent small business owners who rely on hourly teams to move their company forward. 

**The information above is based on our research on shift trade apps. All user feedback referenced in the text has been sourced from independent software review platforms, such as G2 and Capterra, in April 2023.

The post The 6 best shift trade apps for 2023 appeared first on Homebase.

To be efficient, your company needs to know when and how teams are working so you can eliminate time theft, set goals, and ensure you don’t go over your labor budget. You also want to make sure you pay staff accurately and can pinpoint inefficiencies or wasted time.

And it’s essential to be able to do this whether employees are in the office, spread across sites, working remotely, or clocking in and out at different times. Each business needs a timesheet app that works for them, and in today’s hyper-connected world, it makes sense to find one that works on mobile devices.

But finding one can feel like a full-time job in itself. Comparing tools and figuring out if they’re any good, how much they cost, and whether they’ll actually work for you is a time-waster many can’t afford.

That’s why we’ve done the legwork for you. In this post, we cover:

• The key features to look for in mobile timesheet apps
• Our top mobile timesheet app pick in 2023
• What each option is best for in terms of business use cases and features
• A rundown of each platform’s key features and pricing

We’ve also compared the software solutions on our list in a handy table, so you can determine which will work best for your business at a glance.

Key features to look for in mobile timesheet apps

When looking for the right mobile timesheet app for your business, we recommend checking for the following functions: 

• A mobile app that has the same features as the desktop version — The best apps translate across devices and let managers and workers track time wherever, whenever.

• Works for both salaried and hourly employees — Many small businesses have salaried and hourly staff. If this applies to you, be sure to check that your chosen tool can handle both.
• Labor cost control features — This is crucial to maximize efficiency and stick to your budget. Look for tools like early clock in prevention, automatic clock outs, and alerts when staff approach overtime. You might also want cost tracking by hour, department, and role.
• Overtime rules and compliance — Check your app will help you keep track of working laws, so you’ll automatically comply with applicable labor regulations, receive alerts when labor laws change, and store your data as the Fair Labor Standards Act (FLSA) requires.
• Overtime alerts and break reminders — Avoid staff burnout and resentment and prevent expensive overtime by sending workers reminders to take breaks and alerting managers when overtime is approaching.
• Automatic wage calculations — Check your chosen app can automatically calculate wages based on its time tracking data, even if hours differ by worker or shift type. Make sure it factors in breaks, PTO, and tips and ensures payroll will be accurate.
• An interconnected suite of tools — The best platforms will include timesheets and time tracking as part of their wider toolbox, so everything syncs well and works together effortlessly. Keep an eye out for tools like payroll, team communication, and HR and compliance.
• Free or affordable plans — Evaluate your budget and make sure your chosen tool is affordable and includes the timesheet features you need. Homebase’s basic time tracking tools are free for one business location and up to 20 employees, and its advanced features are just $24.95 per month per location for unlimited employees.

Our top pick for mobile timesheet apps in 2023 (+ the rest compared)

Of course, we believe Homebase is the best mobile timesheet app available. Our platform has a free plan, it’s easy to use, and you can easily connect our time tracking features with all the must-have team management functions you might need, including payroll, HR and compliance, time off, and staff happiness tools. 

However, we get that responsible business owners and managers may want to check what else is available before making a final decision.

So, we’ve compared Homebase with five other top time tracking tools to help you decide. They are:

1. Homebase: Best all-in-one solution
2. QuickBooks Time: Best for QuickBooks integrations
3. actiTIME: Best for teams that work on client projects
4. Timely: Best for desk-based teams
5. Tick: Best for simplicity
6. Time Doctor: Best for data insights

Comparison chart: Top 6 mobile timesheet apps in 2023

Software	Mobile app with similar function to desktop?	Suite of other features in same tool?	Labor cost planning?	Break and overtime alerts and reminders?	Calculates wages and runs payroll?	Free plan or trial?	Pricing
	✓	✓	✓	✓	✓	✓	Plans range from free to $99.95 per location per month. Homebase payroll costs $39 per month base fee plus $6 per month per employee. You can save 20% if you sign up annually.
	✓	✓	✓	✓	✓	✓	From $8-10 per user per month, plus a $20 or $40 base fee depending on the plan.
	✓	X	X	✓	X	✓	Free for 1-3 users per month. Starts at $7 per user per month for 1 to 40 users.
	✓	X	✓	X	X	X	Starts at $11 per user per month for 50 projects and three teams.
	✓	X	✓	X	X	✓	Free for one project a month. Starts at $19 per month for ten projects and unlimited users.
	✓ — Android only	X	✓	X	✓	✓	From $7 to 20 per user per month.

A breakdown of the 6 best mobile timesheet apps

 1. Homebase: Best all-in-one solution

Homebase is an all-in-one team management solution for small businesses that rely on hourly workers. Our timesheets tool is just one of our wider suite of features that save time and hassle by automating breaks, overtime, pay, and labor cost calculations. It also seamlessly integrates with our other products for payroll, hiring, team communication, and employee happiness.

Top features

• Calculates hours, breaks, overtime, and wages
• Time tracking features work for both salaried and hourly workers
• Has a mobile app for on-the-go staff, as well as a desktop version for desk-based managers
• Saves time with daily, weekly, and monthly timesheet templates
• Sends alerts and reminders for breaks and overtime
• Fills in online timesheets automatically based on employee clock ins and outs
• Works together with the payroll feature to translate timesheets into automatic, accurate wage calculations
• Automatically calculates tax payments based on time tracking and wage payments
• Lets users manage labor costs by limiting early clock ins and enabling auto-clock outs
• Allows users to set data-guided sales and labor goals
• Ensures businesses stay on the right side of state, city, or federal labor laws with compliance tools

Pros and cons

Users praise Homebase for being “easy to use,” particularly the app. They also like how “everything is in one place.” However, if you’re looking for a timesheet-specific tool that doesn’t have many other features, then our platform may be more than you need.

Pricing

Homebase’s basic time tracking features are free. Here’s a breakdown of all our plan options, both paid and free:

• Basic. Free for one location and up to 20 employees. It includes basic time tracking features, like the ability to build your own weekly schedule, clock in and out on tablets, POS devices, and computers, and manage and store timesheets for up to 90 days.

• Essentials. $24.95 per month per location. Everything in Basic, plus advanced time tracking features like custom overtime and break preferences, availability and time off management tools, shift trade, cover, and claim features, photo clock ins and outs, real-time reminders and notifications for employees, the ability to manage and store timesheets for 4+ years.

• Plus. $59.95 per month per location. Everything in Essentials, plus hiring tools, retention and performance tracking, time off controls, and departments and permissions.
• All-in-one. $99.95 per month per location. Everything in Plus, with HR and compliance, new hire onboarding, labor cost controls, and business insights.

Users can add Homebase payroll as an add-on for a $39/month base fee plus $6/month per active employee. They can also save 20% on their monthly payments when they sign up for an annual plan.

2. QuickBooks Time: Best for QuickBooks integrations

From Intuit and the QuickBooks suite of products, QuickBooks Time was designed with on-the-go time tracking in mind. It aims to boost productivity and reduce the time necessary to manage payroll while integrating seamlessly with the rest of the QuickBooks offerings.

Top features

• Possible to manage several timesheets at the same time
• Mobile app for iOS and Android
• Option to use an on-site tablet that acts as a clock in and clock out kiosk
• Tracks workers and projects to show who’s working, on what, and when
• Generates customizable reports that help predict job costs and plan for payroll
• Syncs with geofencing tools and alerts to remind staff to sign in or out when arriving at and leaving work
• Sends alerts for scheduling changes, overtime, and timesheet approval deadlines
• Creates schedules and sends them to staff to plan and manage overall hours
• Integrates with the wider suite of QuickBooks tools, including payroll and invoicing

Pros and cons

Users say they like QuickBooks Time’s “flexibility” and how “no matter where you are, you can open the app and clock in and keep accurate time.” However, if you don’t need or want to use the rest of QuickBooks’ software (and therefore won’t take advantage of the direct integrations), it may not be worth choosing QuickBooks Time over other options. In addition, you may need to pay more to benefit from the full suite of QuickBooks products and functionality.

Pricing

• Premium: $8 per user per month, plus a $20 base fee per month. Unlimited users.
• Elite: $10 per user per month, plus a $40 base fee per month. Unlimited users. Includes everything in Premium, plus project estimates, timesheet signatures, and geofencing.

QuickBooks Time offers a free 30-day trial.

3. actiTIME: Best for teams that work on client projects

Designed to make monitoring projects and client work easier and quicker, actiTIME lets users manage projects and teams while also connecting with billing and invoicing tools. In addition, actiTIME offers reporting and data analysis, plus task management and assignment.

Top features

• Offers weekly timesheets with manual management
• Has a calendar view to see hours at a glance
• Calculates overtime to comply with company, state, and federal rules
• Lets managers review and approve timesheets
• Sends automatic reminders for overtime and timesheets submission
• Has a mobile app
• Integrates with other tools for reporting and task and team management

Pros and cons

Reviews praise how actiTIME helps with their workplace “organization” and say it’s “easy to navigate and great for people working at different sites.” However, you may need to sign up for multiple plans to get full functionality, which may prove complicated or take you over budget. For example, actiTEAMS, the company’s team management tool, is sold separately.

Pricing

• Free: For one to three users per month. Limited functionality.
• 1-40 users: $7 per user per month for one to 40 users.
• 41-200 users: $6 per user per month for 41 to 200 users.
• 200+ users: Fixed cost per month for 200+ to unlimited users.

4. Timely: Best for desk-based teams

Timely uses AI to automate as much time tracking as possible to ensure accuracy, boost productivity, and make the whole process more efficient. It’s best for desk-based teams who need to track billable hours because it monitors background apps and activity while team members are working. It also has features that are designed to ensure no one is over or underworked. 

Top features

• Records time spent in different apps automatically
• Tracks time automatically to reduce errors and interruptions
• Monitors employee activity while retaining privacy, with no keystrokes monitoring or secret screenshots
• Creates time tracking reports for data-driven insights

Pros and cons

Users say they like how “simple” Timely is and praise its “machine learning” that helps track time accurately. However, the platform is designed primarily for desk-based employees that use apps and work on the same computer all day, which may not work well if your team is mobile or non-desk based.

Pricing

• Starter: From $11 per user per month. Up to 50 projects and three teams.
• Premium: From $20 per user per month. Unlimited projects and teams.
• Unlimited: From $28 per user per month. Unlimited projects, teams, features, and capacity.
• Unlimited +: Custom pricing and tailored features. Available on request.

5. Tick: Best for simplicity

Tick is a straightforward tool that enables simple time tracking and easy communication, and it’s popular with businesses on a budget. Despite being light in terms of its own features, it does offer integrations with more than 750 web apps, particularly task management tools like Asana and Trello.

Top features

• A timecard tracker that includes just three steps (project, task, and time)
• Timesheet recording to get budget feedback and control costs simply
• A mobile app for iOS and Android, plus a Chrome browser extension, an Apple Watch app, and a desktop app for Macs. Also works on tablets
• In-app timers that automatically switch as employees move between tasks
• Project and task budgets
• Budgets can be set for individual tasks or overall projects
• Reports that are ready for third-party accounting and payroll software

Pros and cons

Reviews say Tick is “flexible, trustworthy, intuitive and user-friendly,” as well as “simple” to use and install. However, it doesn’t include built-in functionality for tasks like running payroll and it’s more focused on computer-based tasks. That means it may not work for hourly staff that clock in and out at a physical location.

Pricing

• One project per month: Free. Unlimited people. Basecamp integration.
• Ten projects: $19 per month. Unlimited people. Basecamp integration.
• 30 projects: $49 per month. Unlimited people. Basecamp integration. Recurring projects.
• 60 projects: $79 per month. Unlimited people. Basecamp integration. Recurring projects.
• Unlimited projects: $149 per month. Unlimited people. Basecamp integration. Recurring projects.

Tick offers a 30-day free trial.

6. Time Doctor: Best for productivity insights

Time Doctor empowers teams to track time and gain insights into improving performance and boosting productivity. It’s packed full of features to help managers get the most out of timekeeping, reduce distractions, and offer actionable data for more efficient work.

Top features

• Tracks staff time per task or project
• Automatic distraction reminders if no activity is detected
• Works on computers, tablets, and mobile devices (Android only)
• Accurately tracks time and translates it into timesheets for correct client billing
• Automatic activity monitoring
• Designed for both remote teams and in-office staff
• Works when offline
• Integrates with key project management, payroll, and communication tools like Asana, Avaza, Monday.com, ClickUp, Gusto, Slack, and JIRA

Pros and cons

Users like Time Doctor’s effectiveness and how the desktop and smartphone apps are “intuitive.” However, it’s designed for desk-based staff working on client projects, so it may not be ideal for you if your team doesn’t work in that way.

Pricing

• Basic: $7 per user per month. Includes time tracking, tasks and projects, and activity tracking.
• Standard: $10 per user per month. Includes everything in Basic, plus payroll, integrations, and email notifications. 
• Premium: $20 per user per month. Includes everything in Standard, plus VIP support, extra reporting, and unlimited data history.

Time Doctor offers a 14-day trial.

The best timesheet apps are efficient, simple, and powerful

Keeping accurate timesheets is key to smooth, efficient operations. 

Any of the apps we’ve discussed in this article might be the best option for you as each has a different focus and works best for different workplaces.

For example, Timely uses AI for automatic desk-based tracking, while actiTIME is great for team projects and Tick is simple and to the point for basic tracking.

However, if you’re looking for an all-in-one solution that makes time tracking for both hourly and salaried employees as simple as possible, Homebase is your best bet. Our platform also makes sure your timesheets are accurate and useful and sync seamlessly with the rest of your tasks, like payroll and compliance.

Time may be money, but there’s no reason to accidentally waste either of them with these apps.

**The information above is based on our research on mobile timesheet apps. All user feedback referenced in the text has been sourced from independent software review platforms, such as G2 and Capterra, in April 2023.

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