9 KPIs for Time Tracking to Monitor Employee Performance

time tracking software

Establishing key performance indicators (KPIs) enables a business to monitor and achieve progress. In the recent past, the growth in the development and adoption of time tracking software has simplified business management to a large extent. If you’re thinking about getting employee time tracking software for your business, here are our handpicked time-tracking software KPIs that will help to Monitor employee performance.

What is KPIs and Performance Management

Managers frequently discuss performance. Individual and team targets and objectives must be met in order to meet your organization’s overall goals.

But how do you gauge success? Sure, you know your team works hard, and you probably have data to prove it. Is everyone, however, working on the right things? Is their work producing the results that your team and organization require?

Time management KPI can enable you to answer these questions, by quantifying individual and organizational goals and evaluating performance accordingly. This article defines KPIs tracking software and KPI monitoring tools, explains what they do, and how to use them effectively.

KPI tracking tools are metrics that help to measure the success or failure of a process, Key performance indicators software is a type of software that helps you determine key performance metrics to track the software for your company. It helps you get a clear view of what is working and what is not in your company’s performance.

Employee monitoring software that guides the work of employees. It allows the company managers to measure and evaluate the performance of the employees in a fair way, and to take appropriate action. KPI management software is a tool that will monitor the performance of your web application and give you an easy way to track the progress of your web application.

A Key Performance Indicator (KPI) is a measurable metric that reflects how well an organization is meeting its stated goals and objectives.

Here are some of the simple time management KPI examples

  1. Work Completion on time
  2. Schedule Adjustments
  3. Project Time Estimation
  4. On-time Milestones Achievement
  5. Return on Time Investment
  6. Actual Hours Tracking

Top 9 Time Tracking Software KPIs

Here are our handpicked time-tracking software KPIs that will help monitor employee performance.

1. Daily Productive Time

Time tracking software enables you to track the amount of time team members spend working every day. Such software gives you access to every team member’s historical productivity data, allowing you to understand their performance consistency over time.

2. Absenteeism Overtime

There’s a close link between absenteeism and job satisfaction. One team member not showing up for work is an issue for the business and everyone else on the team. If a team member is falling behind, the productivity of the entire team will suffer. A feature-rice employee KPIs monitoring software enables you to track absenteeism easily.

The employee time tracking software also makes it easy for you to see if a team member is working more hours than stipulated. Working overtime can be an indicator of employee health, workload, and additional workforce requirements. But, it should never be used as an indicator of employee dedication.

3. Revenue Per Employee

Revenue per employee gives you an estimate of how much one team member brings in for the business. While the metric can be used during the yearly performance appraisal of the team member, it can also be used to benchmark the entire business. Business needs cost optimization for growth.

In his book Exponential Organizations, Salim Ismail explains that linear organizations have a linear function of employees and profit. In contrast, organizations with an exponential function of employees and profit grow much faster. With this metric, you can measure where your business stands.

Again, the business needs to measure whether the contribution of every employee can be quantified in terms of the revenue they are bringing or not. The decision depends on the business vertical and organizational role.

 4. Human Capital ROI

The human capital ROI is not as straightforward as other metrics. The use of this time tracking software KPI originates from the book The ROI of Human Capital by Jac Fitz-enz. It assesses the value of human capital, such as knowledge, habits, and attributes.

Human Capital ROI = Company revenue−operating expenses−compensation−benefit cost / Total compensation+benefit cost

Human Capital ROI

How employee time tracking software helps with human capital ROI depends entirely on the business structure. For example, a legal firm thrives on legal knowledge, and the contribution in terms of time can be measured on per per-hour basis vs. the consultancy received.

5. Number of Sales

The number of sales a team member makes is one of the easiest ways to measure the member’s performance. If your business requires “simple sales,” counting the number of sales is the most straightforward way to measure team members’ performance.

However, if your business has a longer sales cycle, measuring a team member’s performance becomes more complicated. You will need to use process metrics – things like the number of calls made to customers and active leads – to monitor performance against the time spent in sales conversion.


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6. Manager’s Subjective Appraisal

Employee performance appraisal typically happens twice a year. Quality of work is the most common metric by which performance is evaluated.

Managers often use the 9-box grid to evaluate a team member’s performance better. The 3×3 table plots the performance on one axis and potential on another. Team members who showcase high performance and low potential are perfect for the role. If both performance and potential are high, then they are ready to move on to another role.

7. Utilization Rate per Employee

The utilization rate is the ratio of the billable hours and total hours logged by a team member. This KPI gives you a clear idea about the profitable work that a team member has done with respect to their internal cost.

However, to use this metric to evaluate employee performance, you will need to use time-tracking software for developers that can distinguish between billable and non-billable hours.

Read More: What Should Experts Do for Full-Time Equivalent Employee Hours Calculation?

8. Profit Per Person

The profit per person indicator enables you to calculate the average profit that a team member makes for the company. You can calculate it by dividing the business’s total profit by the number of team members.

This KPI monitoring tool is most effective for businesses outsourcing work to freelancers or hiring remote workers who don’t have many in-house costs.

Correlate this with the time spent completing the task, and you have the profit ratio per person – employee, freelancer, or contractor.

9. Average Task Completion Time

With these tracking KPIs, you can measure project efficiency more pragmatically without equating it to finances.

Average task completion rate = Total time to complete a task / Number of times performed

Average task completion rate

The KPIs of time tracking software give you insight into your team’s efficiency and helps you estimate how long the different parts of a project will take to be completed.


Quality time tracking software that allows you to measure team performance with all of these time tracking software KPI tracking apps can be challenging to find. With DeskTrack, you’ll be able to track all of these KPI metrics software and more. Time management is a challenging subject and it’s hard to meet deadlines and get things done. Use our time management metrics to set goals and measure how successful you are.

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