Many consultancy and IT companies notice that employees do not always register their hours. This happens at all levels, from junior consultant to project manager. Sometimes time is forgotten, sometimes people postpone it.
The cause of this resistance is often practical: systems are cumbersome, the usefulness 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 registration and how this affects consulting firms' margins.
Resistance to time registration costs consultancy margins
Dutch service providers lose an average of 10-15% of their billable hours due to incomplete time registration. This means that a consultant who works 40 hours a week may not bill for 4-6 hours.
Missed billable hours
Incomplete time registration means that not all hours worked are invoiced. For a consultancy company with 20 employees, this can cost thousands of euros per month.
Common situations where hours are not recorded:
- Working hours outside office hours are forgotten to register
- Short customer questions remain unregistered
- Employees don't fill in their entire week until Friday and forget 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 customer work and project control. Chasing timesheets often becomes a weekly frustration for team leaders.
Why employees don't fill in hours
The reasons why employees avoid their time registration are usually practical. We see five main causes among consultancy and IT companies.
Red tape
Time registration feels like extra administration when the process consists of many steps. A complicated system ensures that employees delay filling in.
Characteristics of cumbersome processes:
- Lots of clicks: Go through multiple screens for one hour booking
- Search for codes: Search for project codes or activity codes
- Fill in manually: Type all data yourself without automatic filling
Inconvenient time registration software
Users experience frustration when time registration systems don't work easily. This mainly happens with outdated software that is not adapted to modern practices.
Problems with time tracking software:
- Slow loading times: Software that takes a long time to start
- No mobile access: Only work via desktop computers
- Unclear interface: Menus that are not logically structured
- No integrations: No link 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, there is a feeling that it is “for the administration”.
The question “why do we do this?” remains unanswered when there is no explanation about the importance of time recording. This reduces the motivation to fill in hours consistently.
Privacy concerns when it comes to time registration
Some employees are concerned about monitoring and control. These concerns are increased when it is not clear what data is stored and who can view it.
Privacy concerns are mainly about:
- Constant monitoring: Fear that all activities are being monitored
- Access to data: Uncertainty about who can view time registration
- Retention period: How long is time data stored
Financial consequences of missed time registration
Incomplete time registration has direct financial consequences for consultancy companies. These costs are often greater than expected.
Less cash flow due to late billing
Invoices can only be sent when all hours worked are known. Delay in time registration means delay in payment. For project-based companies, this can lead to cash flow problems.
Unreliable project margin calculations
Without a full picture of hours worked, it is difficult to calculate project profitability. This makes it difficult to make good decisions about new projects or pricing.
Delay in billing processes
Incomplete time data causes bottlenecks when creating invoices. Administrators must first identify missing hours before invoices can be sent.
Five mistakes that block adoption
We regularly see the same errors with Dutch service providers who have problems with time registration. These mistakes are easy to avoid.
Using old-fashioned Excel sheets
Excel is often used because it is familiar. Nevertheless, it causes resistance because employees have to keep track of everything manually. Excel files are difficult to link to other systems.
No integrations with Exact or AFAS
Dutch companies often work with Exactly whether APHAS for their bookkeeping. Without integrations, double entries occur, which increases the risk of errors.
Improper overtime processing
Overtime is sometimes not registered correctly. This happens when systems make no distinction between normal hours and overtime, or when agreements about this are unclear.
Insufficient contractual clarity
Employment contracts do not always clearly describe what is expected with regard to time registration. This ambiguity causes different interpretations within the team.
No real-time approval of hours
In the absence of direct approval, timesheets remain open for weeks. At the end of the month, this leads to extra work and confusion.
How to make time registration frictionless
The solution lies in removing practical barriers. Three adjustments make the biggest difference.
Enter mobile first registration
Employees are increasingly working in a hybrid way or at different locations. A mobile app makes it possible to register the time immediately after a customer visit or meeting.
Use automatic timers
Automatic time recording reduces manual work. A timer can be started at the start of a task and is automatically linked to the correct project.
Set smart reminders
Soft reminders help employees remember time and attendance. These notifications come at fixed times, such as at the end of the working day, 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 with a smooth transition to better time registration.
Step 1: Set goals and communicate why
Start with clear time registration goals. Explain to the team why time tracking is important for project success and fair billing.
Important messages:
- Workload insight: Time registration helps distribute projects
- Correct billing: Full registration allows for timely payment
- Fair rules: Everyone works according to the same agreements
Step 2: Choose software with integrations
Select a time registration tool that can link to existing systems such as Exact or AFAS. This prevents duplication of work and reduces errors.
Step 3: Train team in short sessions
Keep training sessions short and practical. Let employees practice with the new system immediately instead of giving 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 Time 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 AVG 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 companies can test all functions for 14 days. TimeChimp works seamlessly with Exact, AFAS and other Dutch accounting systems.
FAQs
Mobile apps and automatic reminders make time tracking easier for remote employees. A clear explanation of the importance of accurate recording helps create understanding for the process.
Share progress reports and summaries per project instead of individual timesheets. Focus on overviews by phase or milestone that show value to customers.
Start with clear communication about the reasons for time recording. Involve employees in the choice of software and provide user-friendly tools that make work easier.
Automatic reminders and making time registration part of the daily routine help against forgetfulness. Also investigate why employees don't fill in their hours to solve underlying problems.