How to Motivate Employees to Track Their Time
by Rainer Stropek
As the owner of a small IT consulting company, I know first-hand how challenging time tracking can be. Timesheets are mission-critical. We invoice consulting hours to clients, plan projects, and must keep an eye on overtime.
But getting people to record their working time accurately and promptly was anything but easy at first. Many knowledge workers see filling out timesheets as annoying bureaucracy or even a sign of mistrust. I’m not alone: one study found that over 40% of employees either don’t track their time at all or only track it inaccurately, which hurts productivity and profitability (Timesheets and Their Challenges in 2024).
In fact, around 80% of submitted timesheets have to be corrected afterwards (25 Time and Attendance Statistics Employers Should Know | Shortlister). This is a warning signal of just how widespread inaccuracy and negligence are in this area.
Many employers and employees view time tracking purely as a control instrument, especially against the backdrop of new legal requirements. But that view is too narrow: when used correctly, time tracking can be a positive management tool. Even a motivational factor that creates fairness and boosts productivity (Arbeit und Arbeitsrecht - Personal | Praxis | Recht).
Why accurate time tracking matters
Before we talk motivation, it has to be clear why time tracking is so important, not only for us as a company, but for employees themselves. Several factors play a role:
Legal compliance and employee protection
Across Europe, time tracking is becoming mandatory. The purpose is to protect employees from excessive workloads (Arbeitszeiterfassung: Ja, sie ist Pflicht und zwar sofort | Management-Blog). When working hours are recorded correctly, overwork can be identified and avoided. That benefits employees because no one should regularly work more than labor law allows. Documentation ensures rest periods are observed and overtime doesn’t disappear. In short: time tracking serves worker protection, not just control.Fairness and transparent recognition of performance
A transparent time tracking system builds trust within the team. No one needs to feel their overtime “vanishes” or goes unnoticed, because every hour is documented.Productivity, project control, and resource planning
For a services business, accurate hour records are the foundation of proper costing. Only when we know how much time we spend on which task can we plan realistically and steer projects efficiently. Inaccurate time distorts key metrics. For example, US employers must correct 80% of timesheets, costing valuable management time (Shortlister).
If time is recorded promptly and precisely, projects can be monitored in real time: Did we spend too many hours on a task? Do we need more resources? Should we adjust the budget? Such decisions depend on reliable time data. Poor time tracking can directly hurt productivity and business performance (Timesheets and Their Challenges in 2024). On the other hand, good time tracking means better control and often higher profitability. Employees benefit too: when projects are profitable, jobs are more secure and bonuses or raises become more feasible.Work–life balance and people development
Surprisingly, time tracking can also help improve employees’ work–life balance. If it becomes clear someone is working too much regularly, employers can respond by redistributing tasks or hire. In our team, for example, we make sure overtime is compensated with time off. Time tracking provides the data to find fair solutions in agreement with employees. Making overtime visible increases satisfaction and recognition and prevents burnout.
It can also create space for training or innovation, because you know exactly where capacity exists. And since mental health is tightly linked to workload, accurate time records help detect overload early.
In short: If time tracking is used properly and the data is applied for employees’ benefit, everyone wins (Arbeit und Arbeitsrecht – Fachartikel).
These points show there are many good reasons for time tracking and they benefit not only the employer but also employees. That’s exactly what managers must communicate if we want to motivate employees to track time. So why do so many still struggle?
Why many employees resist time tracking
Despite the benefits, I regularly encounter objections. Why is conscientious time tracking hard for many? Here are typical challenges:
1. Time tracking is seen as red tape
For some, recording hours feels like unnecessary paperwork that distracts from real work. Developers want to code, consultants want to solve client problems and not fill out forms. This feeling is common: 39% of employees say timesheets are time-consuming and keep them from higher-value work (Timesheets and Their Challenges in 2024). If the tool or process is clunky (e.g., minute-by-minute on paper), frustration rises and people put off entering hours. Instead of quick daily entries, everything gets backfilled at week’s or month’s end with dramatic consequences for accuracy. Those who enter time only once a week achieve about 47% accuracy, versus 66% with daily tracking (Shortlister)). Details get forgotten or guessed, leading to the corrections and inconsistencies mentioned above.
2. Lack of clarity about the purpose
Often employees don’t see the why behind time tracking. If management doesn’t explain what the hours are used for, it’s easy to assume the only goal is control. In my company, acceptance rose as soon as we explained why we track time, namely to plan projects better and to ensure no one constantly racks up overtime. Without context, people fear data could be used against them (e.g., to police breaks or measure performance) rather than to help them. Missing transparency about the purpose lowers engagement (Timesheets and Their Challenges in 2024).
3. Time tracking is perceived as a vote of no confidence
Especially in environments with trust-based working time and remote work, mandatory time tracking can feel patronizing. Over a third of employees see it as micromanagement. They fear every minute will be scrutinized (Timesheets and Their Challenges in 2024). The concern is understandable: where there was freedom, new requirements can feel like a step back to the punch clock. Knowledge workers value autonomy. Research shows employees with more control over working time tend to contribute more—on average 80 minutes per week more—than those with rigid control (University of Basel)). In other words: trust pays off. “The study clearly refutes fears that a lack of working-time control leads to shirking,” summarizes economist Michael Beckmann (University of Basel)). The flip side: if employees feel monitored, it undermines their intrinsic motivation (University of Basel).
4. Weaknesses in the system or rollout
Sometimes the problem is with leadership or process: we provide a time tracking tool and hope it gets used, but never follow up, like providing safety shoes without ensuring they’re worn (Management-Blog). That signals it isn’t really important. Or we demand extreme detail, which overwhelms people. Labor lawyers advise pragmatism: don’t go too granular; at the beginning, start with start and end times, otherwise the effort becomes unreasonable and “won’t be accepted by employees” (Management-Blog).
Given these hurdles, a simple “You must log your time now” won’t cut it. Motivation improves only if we turn several dials. Next, five strategies that have worked in my company.
Motivating employees to track time: 5 practical strategies
1. Clearly communicate the purpose of time tracking
The most important step is to speak openly about the why. “Please enter your hours” earns eye-rolling. Explaining why the data helps everyone creates understanding.
Worker protection and overtime compensation:
We use hour records to make sure no one constantly accumulates overtime. If they do, we discuss solutions (more staff, rebalancing work, time off, etc.). I also point out that this is now a legal requirement! The legislature explicitly introduced time tracking to protect employees from overload (Management-Blog).Fair pay and recognition:
Precise time tracking ensures no pay is lost. Every extra hour is paid or credited. Nothing “disappears.” That motivates those who often go the extra mile, because they know their effort is recorded and honored. It also creates fairness among colleagues: everyone pulls their weight. This builds trust and removes the whiff of arbitrariness.Project transparency and business success:
We use time data to run projects profitably. If a project is profitable, the whole company benefits and so does every job. Time data powers better decisions (e.g., whether we need more resources) and transparent client billing.
These messages must be regular and sincere, not a one-off email. In team meetings I share what we learned from time data (“Project X showed we need another developer—your careful tracking made that clear.”). When people see concrete benefits, willingness rises (Timesheets and Their Challenges in 2024).
2. Lead with trust, not control
As shown above, mistrust kills motivation (University of Basel). The culture around time tracking makes the difference. As a leader I must signal: I trust you. Time tracking isn’t there to police you—it helps all of us. I also don’t turn it into a punch clock 2.0. We track project hours, but I don’t police every minute at the desk—no screenshots or GPS in home offices. Autonomy must be genuine to work.
Crucially, I walk the talk: as CEO I track my time honestly, too. Time tracking isn’t “top vs. bottom.” If someone abuses the system, I address it one-on-one rather than sowing general mistrust.
3. Ensure transparency and fairness
Rules and consequences around working time must be clear, consistent, and understandable. In our company, for example, we clearly regulate how overtime is handled (flex time account that must be reduced regularly). Every employee can view their hours anytime and knows their balance. We also communicate project-level totals (respecting privacy). Transparency raises the sense of fairness, reduces resentment, and strengthens the team.
Define who can access time data and for what purposes (ideally with the works council or team). In our case: only management and accounting; evaluations are mainly at project level, not to rank individuals. Clear rules build trust in the system.
4. Don’t forget recognition and feedback
Motivation thrives on appreciation. That includes something as “banal” as timesheets. If people feel their effort is seen and valued, they’re more willing to participate. Sadly, almost one in three employees feels their work isn’t recognized (EY Job Study 2023). Learn from this: say thank you when someone consistently records time well. Light-touch gamification can help if used sensitively (e.g., a fun quarterly “Golden Time Tracker” trophy).
Equally important: collect feedback. We regularly ask how the team gets on with time tracking. We’ve adjusted categories in our system time cockpit because the team found them unclear. When feedback leads to improvements, motivation rises and people helped shape the system.
Make success visible. If accurate tracking made a project more profitable or helped us detect overload early, share the story. People then feel their contribution matters being one of the strongest motivators; 95% say contributing to company success matters to them (EY Job Study 2023).
Conclusion
Motivating employees to track time takes more than new software or strict rules. It’s about creating an environment where time tracking is seen as a meaningful, fair, and supportive part of work culture. I’ve learned as a business owner: communication is key, because people need to understand why and how their data is used. Equally important are trust and transparency. Practical simplifications, from simple processes to helpful tools, remove friction and make tracking routine. And don’t forget the psychological component: appreciation, involvement, and a positive error culture often do more for motivation than any formal mandate.