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A high tech company had both full and part time employees. Their time keeping system was based on employee trust. Employees were required to keep a work log where they recorded the jobs they worked on, what they did, and how long it took. Employee pay was tied to their job record. The hours reported were billed to their clients and also paid to the employee.

The system worked well for years. Slowly, over time, things began to unwind. The boss watched employees come and go and wasn't sure what they were doing. He began to get the feeling that he wasn't getting as much work done as was being reported in the work record. Employees were reporting in a lot of hours, yet the work wasn't getting done. In addition, he felt the employees were never around when he needed them.

It came to a head when the company looked at the past six months payroll. It turned out a senior trusted employee, who worked 5 days per week, had reported LESS hours than another employee who worked 3 days a week - and they carpooled together!

There is nothing fundamentally wrong here. This is just employee subjectivity. In most cases employees really BELIEVE they work more hours than they actually do. The company installed Internet Time Card and corrected the situation within two weeks. Now the payroll is based on the actual hours worked, not the subjective hours reported. As a result the time keeping is more accurate, productivity is up, and the cost of payroll is way down.