Timecard vs Timeclock Timekeeping for Construction Companies

May 17, 2023

Efficient timekeeping is crucial for the success of any construction company. Accurate tracking of employee hours not only ensures fair compensation but also helps with project management, cost estimation, and compliance with labor regulations. Traditionally, construction companies have relied on timecards to record employee hours because before the smartphone era, having a timeclock timekeeping system was just not realistic since employees can be on multiple different jobs at different locations during any given day or week. Today, since virtually all employees will have a cell phone, implementing a timeclock timekeeping system is very much possible, and may even be easier for your employees to work with.

Timecard Timekeeping

Timecards have long been a staple in the construction industry. With this method, employees manually record their time on physical or electronic timecards. In the most simple systems they’ll only enter the hours, while in more advanced systems they may enter start and end times as well as breaks. With an electronic timecard system, employees can select which job or job stage they are entering their time to, for future job costing and data analysis.

One of the primary advantages of timecards is their simplicity. They require minimal investment in technology (physical timecards just require a sheet of paper, and an electronic system will be easier and less expensive to build and maintain than a timeclock system) and can be easily understood by employees. Additionally, timecards allow for flexibility, as workers can record their hours for various locations and job sites either as they complete them or at the end of the day (or the end of the pay period).

However, timecards are not without their limitations. They are prone to errors, whether intentional or accidental, such as rounding up hours, or just ballparking hours when time is entered well after the work is performed (I remember many times filling out two weeks worth of time on the day my timecard was due!).  If you use physical timecards, the manual processing of timecards can be time-consuming and may lead to delays in payroll. Also with physical timecards, retrieving data from timecards for analysis or reporting purposes can be challenging, requiring manual data entry or scanning.  It should be noted that these challenges with physical timecards are easily resolved with an electronic timecard system.

Timeclock Timekeeping

Timeclock systems have gained popularity in recent years because they offer the potential to get more accurate results, and the fact that everyone has a smartphone makes these systems much more realistic.

One of the significant advantages of timeclock systems is their accuracy. Ideally, employees should be clocking in when they get on a job, and clocking out at the end of the day, meaning all their hours are assigned to the correct jobs. Another feature of a timeclock system is the ability to put checks in place such as geotagging or geofencing to ensure employees are actually on location when they clock in.

Timeclock timekeeping systems are not without drawbacks, however. If an employee forgets to clock in or clock out, you’ll either need to have your system set up to allow them to change their times - which in some ways defeats the purpose of a timeclock system - or you will need to have a process in place for office staff to make the necessary changes which is not a great use of your back office time!

Which method is Right for My Company?

When deciding between timecard and timeclock timekeeping methods, you should consider how your company operates. If your employees are on multiple jobs in a day, asking them to enter their hours for each job at the end of the day might make more sense than asking them to clock in and out of each job. If your people are only on one or two jobs in a day, or if you think your people will be fine with clocking into each job, you’ll potentially be able to get more accurate results using timeclock timekeeping.

Ultimately, construction companies should evaluate their specific requirements and weigh the benefits and drawbacks of each method before choosing the most suitable timekeeping solution.