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How to Choose the Right Time Tracking System for Your Business

By EasyHours | April 10, 2025

A guide to selecting the optimal time tracking system that suits your business needs

Time Tracking System

Tags: time tracking system, work time registration, digitalization, SME

Choosing the right time tracking system for your business can be crucial for both efficiency, employee satisfaction, and compliance with legal requirements. However, with the many options on the market, it can be difficult to navigate and find exactly the solution that fits your needs.

In this article, we guide you through the process of choosing the optimal time tracking system. We look at the key criteria you should consider, typical pitfalls to avoid, and how to find the balance between simplicity and functionality. Whether you are a small business starting with time tracking for the first time or a larger organization looking to upgrade your current system, here you will find concrete advice to make the right choice.

Table of Contents

Why is it important to choose the right system from the start?

Choosing the right time tracking system from the start is crucial for several reasons. Firstly, work time registration is no longer an option but a legal requirement: Since July 1, 2024, all employers must register employees' working hours. The right system helps your business comply with the law without unnecessary hassle, as it ensures reliable recording and storage of data.

Secondly, it's about long-term efficiency. If you invest in a good system now, you avoid having to switch later on – a process that can be time-consuming and costly. A well-functioning system quickly gives you an overview of hours, makes payroll processing easier, and frees up time for more important tasks.

Finally, user-friendliness is a huge factor: If you choose a system that your employees can easily use (preferably simple time tracking via an app or web), you increase the chances that everyone records their time correctly. This leads to better data and less frustration. In short, making the right choice from the start gives you peace of mind, because you are both in compliance and get a solution that works in everyday life.

Tip: If you are completely new to digital time tracking, you can read our guide on 5 steps to get started with time tracking to get a plan for implementation. Here you will get help to get off to a good start with your new system.

7 central criteria when choosing a time tracking system

When your company needs to choose a new time tracking system, there are a number of important criteria to consider. Here we go through seven central points that can help you make the right choice:

  1. User-friendliness: The system must be easy to use for all employees – regardless of technical level. An intuitive solution with a simple design ensures that time tracking becomes an easy part of everyday life and not a time thief. Consider whether the system is available in your local language, whether the menus are clear, and whether it is easy to learn. The more user-friendly, the greater the likelihood that everyone actually uses it correctly every day.

  2. Price: Consider both the acquisition cost and ongoing expenses. For an SME, the budget may be limited, so it's important to find a solution that meets your needs without breaking the bank. Remember that the cheapest solution is not always the best – if a cheap system lacks important features or is difficult to use, it may end up costing more in wasted time and frustration. Compare prices on different solutions, and be aware of whether the price is per user, per month, or possibly a one-time license.

  3. Mobile access: Today, much work takes place on the go or outside the office. Make sure to choose a system with a time tracking app or a mobile-friendly website, so employees can record time from their smartphone or tablet. Mobile access makes it easy for staff to "clock in and out" whether they are at the office, at home, or visiting clients. This increases the chances that time is recorded in real time and correctly, rather than having to remember it later.

  4. Data Storage and Security: A time tracking system must store your data securely. According to legal requirements, information about working hours must be stored for several years, so the system should be able to handle long-term data storage. Investigate where the data is stored – is it in the cloud on a secure server? – and whether the provider complies with GDPR and other security standards. You want a reliable system that does not lose data and protects employees' personal information.

  5. Reporting: Good reporting capabilities are a must. You should be able to easily generate reports on working hours for a given period, both to check compliance (e.g., adherence to the 48-hour rule) and to use data for payroll, billing, or productivity analysis. Choose a system where you can generate clear reports on employees' hours, overtime, vacation, etc., with just a few clicks. A bonus is if you can customize the reports or export data to Excel/PDF as needed.

  6. Support and help: Technology should ideally work, but it's important to have help at hand if questions or problems arise. Check what support is offered: Is there local language support? Phone support, chat, or email? How quickly do they respond? Especially in the beginning, you might need a little extra help with setting up or using the system. A provider with good customer service can make all the difference in whether the implementation is a positive experience. Consider reading reviews from other customers about their support experience.

  7. Integration with other systems: Time tracking rarely functions in isolation. It can save you a lot of manual work if the system can integrate with your other systems – for example, payroll systems, financial systems, or project management tools. With good integration, recorded hours can be automatically transferred to payroll or invoicing, eliminating the need for double entry. Consider the programs you already use in the company and investigate whether the time tracking system can communicate with them. This provides a more streamlined workflow and fewer errors.

Common mistakes and how to avoid them

When companies choose a time tracking system for the first time, some common mistakes tend to recur. Here are some pitfalls and advice on how to avoid them:

  • Focusing too narrowly on price: Of course, the budget needs to add up, but be careful not to only go for the cheapest solution. A typical mistake is choosing a free or very cheap system that turns out to be cumbersome to use or lacks vital features. The solution is to consider the overall picture – be willing to pay for quality if it saves time and hassle in the long run.

  • Choosing a too complex system: Some companies end up with an overly advanced system because they think "the more features, the better." However, if the system is too extensive, it can seem intimidating or overwhelming for users. The result is that employees might avoid using all the fancy features—or worse, avoid the system entirely. Avoid this mistake by matching the system's complexity with your actual needs. Often, a simpler solution is best for smaller companies (more on this below).

  • Not involving employees: It's a big mistake to make the decision in a closed office without input from those who will use the system daily. If employees feel that a new system is being "forced upon them," resistance can arise. You can avoid this by involving employees early in the process—for example, by getting feedback on user-friendliness during a free trial period. This way, you gain their buy-in, and they feel ownership of the solution.

  • No trial period or testing: Buying a pig in a poke is risky. A common blunder is rolling out a system without first testing it properly. Fortunately, most providers offer a free trial or demo. Use it! Let a few employees try out the system in practice for a week or two. This way, you can discover any challenges before you commit too much. The test period also provides an opportunity to adjust the setup, create instructions, and ensure you've made the right choice before the final investment.

  • Forgetting the future: You may have only a few employees now, but what about in a few years? A mistake is choosing a solution that cannot be scaled or adapted to the company's development. Therefore, also consider future needs: Can the system handle if you double the number of employees? Can new features be purchased if needs grow? By thinking ahead, you ensure that the system can keep up with your company, and you avoid having to switch again in a short time.

By paying attention to these points, you can navigate around the worst pitfalls. It's about being realistic, taking the time to research the market, and involving those who will use the solution. This way, you are stronger in your choice of time tracking from the start.

Simple or Complex Time Tracking System?

The market offers everything from very simple apps to highly advanced time tracking systems. But which type is best suited for a small or medium-sized business?

Often, small businesses get the most value from simple systems. A simple solution focuses on the essentials – easy time tracking of work hours – without a lot of extra (and potentially confusing) features. This typically means lower costs, faster implementation, and a more user-friendly experience. Employees can quickly get to know the system, and you can quickly start tracking time correctly.

The more complex solutions are often aimed at large companies with complex needs: They can include everything from project management, shift planning, HR modules, integration with many different systems, etc. It can be tempting to choose a "Rolls Royce" solution, but for a small business, it can feel like using a sledgehammer to crack a nut. You risk paying for features you never use, and the system can be harder to maintain.

Therefore: Be honest about your needs. If you primarily need to keep track of clock-in/clock-out times and ensure that no one is working too much, then a simple time tracking solution is probably sufficient. You can always upgrade later if the need arises. Start simple – the most important thing is that you get started with working time registration, meet legal requirements, and gain the benefits that digital time tracking provides in everyday life.

(You may want to read our article on the benefits of a digital solution to see what you specifically gain by ditching paper and Excel.)

Conclusion – Get Started

Choosing the right time tracking system requires some groundwork, but it quickly pays off in the form of easier administration, happier employees, and secure compliance with labor laws. Think long-term and find a solution that fits your company both today and tomorrow. Once you have considered criteria such as user-friendliness, price, mobile access, data storage, reporting, support, and integration – as well as avoided the typical pitfalls – you are well-equipped to make the right decision.

So what now? If you are looking for a simple and effective time tracking system, EasyHours is an obvious choice. EasyHours meets all the mentioned criteria in a user-friendly way and is developed with the needs of SMEs in mind. Start your free trial at EasyHours.eu today, and experience how easy it can be to keep track of working hours – you'll be up and running quickly and fully compliant without hassle. We are ready to help you get off to a great start!