Time registration issues: why employees resist and how to help

Many consultancy and IT firms notice that employees don't always log their hours. This happens at all levels, from junior consultants to project managers. Sometimes time is forgotten, and sometimes people put it off.

The cause of this resistance is often practical: systems are cumbersome, the value is unclear, or there is a sense of distrust. Nevertheless, this resistance has direct consequences for the company.

In this series, we explain why employees avoid time tracking and how this affects consulting firms' margins.

Resistance to time tracking costs consultancy margins

Dutch service providers lose an average of 10-15% of their billable hours due to incomplete time tracking. This means that a consultant working 40 hours a week may fail to bill for 4-6 hours.

Missed billable hours

Incomplete time tracking means that not all hours worked are invoiced. For a consultancy with 20 employees, this can cost thousands of euros per month.

Common situations where hours go unrecorded:

• Hours worked outside office hours are forgotten
• Short client questions remain unrecorded
• Employees wait until Friday to fill in their entire week and forget the details

Weekly time lost chasing timesheets

Managers spend an average of 3-5 hours per week chasing missing timesheets. This time comes at the expense of client work and project management. Chasing timesheets often becomes a weekly frustration for team leaders.

Why employees don't log their hours

The reasons why employees avoid time tracking are usually practical. We see five main causes among consultancy and IT firms.

Red tape

Time tracking feels like extra admin when the process involves too many steps. A complicated system ensures that employees put off filling it out.

Characteristics of cumbersome processes:

• Too many clicks: Navigating through multiple screens to book a single hour
• Searching for codes: Searching for project or activity codes
• Manual entry: Typing all data yourself without any auto-fill features

Inconvenient time tracking software

Users get frustrated when time tracking systems aren't user-friendly. This is especially common with outdated software that hasn't kept up with modern workflows.

Common issues with time tracking software:

• Slow loading times: Software that takes a long time to launch
• No mobile access: Only accessible via desktop computers
• Unclear interface: Menus that aren't logically structured
• No integrations: No connection to calendars or other tools

Lack of transparency

Employees often don't know why they need to register their hours. When the goal is unclear, it feels like it’s just “for the administration.”

The question “why are we doing this?” remains unanswered when there is no explanation about the importance of time tracking. This reduces the motivation to log hours consistently.

Privacy concerns regarding time tracking

Some employees are concerned about monitoring and control. These concerns are amplified when it is unclear what data is stored and who can view it.

Privacy concerns mainly involve:

• Constant monitoring: Fear that all activities are being tracked
• Access to data: Uncertainty about who can view time logs
• Retention period: How long time data is stored

Financial consequences of missed time tracking

Incomplete time tracking has direct financial consequences for consultancy firms. These costs are often higher than expected.

Reduced cash flow due to late billing

Invoices can only be sent once all hours worked are accounted for. Delays in time tracking mean delays in payment. For project-based companies, this can lead to cash flow problems.

Unreliable project margin calculations

Without a complete picture of hours worked, it is difficult to calculate project profitability. This makes it hard to make informed decisions about new projects or pricing.

Delays in billing processes

Incomplete time data creates bottlenecks when generating invoices. Administrators must first identify missing hours before invoices can be sent.

Five mistakes that block adoption

We regularly see the same errors among service providers struggling with time tracking. These mistakes are easy to avoid.

Using outdated Excel sheets

Excel is often used because it is familiar. However, it creates resistance because employees have to track everything manually. Excel files are also difficult to integrate with other systems.

No integrations with Exact or AFAS

Companies often work with Exact or APHAS for their bookkeeping. Without integrations, double entry is inevitable, which increases the risk of errors.

Improper overtime processing

Overtime is sometimes not registered correctly. This happens when systems fail to distinguish between regular hours and overtime, or when agreements regarding this are unclear.

Insufficient contractual clarity

Employment contracts do not always clearly define expectations regarding time tracking. This ambiguity leads to different interpretations within the team.

No real-time approval of hours

In the absence of immediate approval, timesheets remain open for weeks. At the end of the month, this leads to extra work and confusion.

How to make time tracking frictionless

The solution lies in removing practical barriers. Three adjustments make the biggest difference.

Prioritize mobile-first registration

Employees are increasingly working in a hybrid way or at different locations. A mobile app makes it possible to log time immediately after a client visit or meeting.

Use automatic timers

Automatic time tracking reduces manual work. A timer can be started at the beginning of a task and is automatically linked to the correct project.

Set smart reminders

Gentle reminders help employees keep track of their time and attendance. These notifications arrive at set times, such as at the end of the workday, without being intrusive.

Step-by-step plan for rapid implementation

A phased approach works better than changing everything at once. This step-by-step plan helps ensure a smooth transition to better time tracking.

Step 1: Set goals and communicate the "why"

Start with clear goals for time tracking. Explain to the team why tracking time is important for project success and accurate billing.

Key messages:

• Workload insight: Time tracking helps distribute projects
• Accurate billing: Complete records allow for timely payment
• Fair rules: Everyone works according to the same agreements

Step 2: Choose software with integrations

Select a time tracking tool that integrates with existing systems like Exact or AFAS. This prevents duplicate work and reduces errors.

Step 3: Train the team in short sessions

Keep training sessions short and practical. Let employees practice with the new system immediately instead of providing lengthy explanations.

Step 4: Start with pilot projects

Start with one or more projects where employees are open to change. Their positive experiences help convince other team members.

Legal obligations for Dutch service providers

Dutch companies have legal obligations regarding time registration. It's important to know these rules.

Working Time and Compliance Act

The Working Hours Act requires employers to record hours worked and rest periods. This applies to all employees, including flex workers.

GDPR and privacy in time tracking

Time recording data falls under the GDPR because they can be traced back to individual employees. Employees have the right to know what data is recorded and by whom it can be viewed.

Try TimeChimp for free for better time tracking

TimeChimp was developed for Dutch consultancy and IT companies. The platform offers integrations with over 25 business tools. Through a free trial free trial, companies can test all functions for 14 days. TimeChimp works seamlessly with Exact, AFAS and other Dutch accounting systems.