6 Reasons Why Salaried Employees Need Timesheets

2024

Written by Asim Qureshi
By Asim Qureshi, CEO di Jibble

Hi, I’m Asim Qureshi, the CEO and co-founder of Jibble, a cloud-based time and attendance software. I have several years of experience in building and scaling software products and teams across various industries and markets. Before I founded Jibble, I worked as a VP at Morgan Stanley for six years. I’m passionate about helping businesses improve their productivity and performance through smart time management practices.

Overview

Salaried employees are compensated with a fixed salary, irrespective of the hours they put in. So why the need to track their hours with a timesheet?

Well, despite this fixed pay structure, tracking salaried employee work hours through timesheets can offer several benefits. While some might view it as unnecessary, accurate time tracking provides insights into productivity levels, helps with project management, and ensures compliance with labor laws.

Let’s take a deeper look at these benefits and how timesheets can be a win-win for salaried employees and their employers.

What are timesheets for, anyway?

Before we head into the reasons why your salaried employees need to use timesheets, let’s first define what timesheets are and what they’re for.

Timesheets are basically tools used to record the amount of time an employee spends on various tasks or projects. They help keep track of when someone starts and finishes work, including any breaks they take in between.  Traditionally, timesheets were paper-based, but today, they are often more sophisticated in the form of timesheet software that allows for more efficient and accurate tracking.

6 Reasons Why Salaried Employees Need Timesheets

1. More accurate project management

Finding the balance between project timelines, tasks, and resource management can be challenging. Every manager knows the struggle. Thankfully, timesheets can provide a solution.

Timesheets can give a clear record of how long specific tasks and projects take, allowing managers to create more realistic project schedules. With detailed insights into time allocation, it’s easier to identify where projects are lagging and which tasks may require additional resources. This leads to better planning and execution, ultimately improving project outcomes.

2. Boost productivity

Using timesheets can significantly boost productivity by highlighting how employees spend their work hours. When employees track their time, they become more aware of how they are allocating their hours, which can encourage more focused and efficient work habits.

Managers can also analyze timesheet data to identify patterns of productivity and areas where improvements can be made. By addressing inefficiencies and optimizing workflows, businesses can enhance overall productivity.

3. Avoid salaried employee burnout

Burnout is a serious problem in the workplace. According to the 2024 Global Talent Trends report, over 80% of employees face a risk of burnout this year. A leading cause of burnout is overwork. Now, you might be asking, how can timesheets help with all of this?

Well, timesheets help ensure that workloads are distributed fairly among team members. By providing a transparent view of who is working on what and for how long, managers can identify if certain employees are consistently overloaded while others have less to do. This visibility enables more equitable task distribution, preventing burnout for overworked employees and ensuring that everyone on the team contributes effectively. It’s a win-win all around.

4. Ensure accurate client billing

In industries where billing clients based on hours worked is common, timesheets provide a transparent and detailed record of the time dedicated to each client’s projects. This transparency helps maintain trust with clients and prevents disputes over invoicing by providing an accurate account of billable hours.

Some timesheet management software, like Jibble, even integrates with accounting software which allows you to export timesheet data straight to your accounting system, streamlining the invoicing and billing process. This integration not only saves time but also reduces the risk of errors in billing and payroll calculations.

5. Manage PTO more easily

Paid time off (PTO) isn’t mandated by US labor laws, but it’s become a standard perk offered by many companies to their salaried employees. And timesheets don’t just help track time, they also help track attendance and PTO.

With timesheets, employees can easily log their PTO requests and track their accrued and remaining leave days. Managers can efficiently review and approve these requests, ensuring smooth scheduling and adequate coverage. Additionally, timesheets provide a comprehensive record of PTO usage, facilitating accurate payroll calculations and compliance with company policies.

6. Ensure compliance with salaried employee labor laws

Timesheets are essential for ensuring compliance with salaried employee labor laws, especially regarding overtime.

Salaried employees generally aren’t entitled to overtime pay but there is a caveat to this rule. And that is if they are classified as non-exempt under the Fair Labor Standards Act (FLSA). To be considered non-exempt, salaried employees must meet a certain salary threshold and hold job duties that don’t fall under the category of administrative, executive, or professional. If they fit this criteria, then they will be entitled to receive overtime pay for any hours worked beyond their standard work week.

So where do timesheets fit into all of this? Well, with timesheets, employers can accurately track the hours worked by their employees, ensuring that non-exempt salaried employees are properly compensated for any overtime hours. This not only helps in compliance with labor laws but also protects the company from potential legal disputes and fines related to unpaid overtime.

Timesheets provide a transparent record that can be used to verify employee work hours, which is particularly important during audits or when responding to employee inquiries about their pay. By maintaining detailed timesheets, employers can demonstrate that they are adhering to FLSA regulations and that they respect their employees’ time and effort.

To Wrap Up

Timesheets prove to be a beneficial tool even for salaried employees. By ensuring compliance with labor laws, providing transparent records, and aiding in workforce management, timesheets offer a multifaceted approach to improving organizational efficiency. The six reasons outlined in this article demonstrate how timesheets not only safeguard legal compliance and prevent potential disputes but also enhance productivity, optimize resource allocation, and ensure accurate payroll processing.

So the next time your salaried employees ask “Why do we need to use timesheets?”, you might want to show them this article!

Learn more about what salaried employees are, salaried employee rights, and why time tracking is necessary for salaried employees through our comprehensive guides.