Project Management and Time Tracking: Why Every PM Needs It

Project management and time tracking. Two overused terms that are right there with eye-roll-worthy corporate jargon like “core competencies” or “low-hanging fruit”.

But they are actually the dynamic duo every PM like yourself needs to keep the chaos in check. 

At Memtime, we believe that managing a project is a fine art of keeping everything under control while appearing calm and collected, even if your brain feels like a browser with 72 tabs open.

You juggle deadlines, manage team members and client expectations, all while hoping nothing goes off the rails.

But here’s the twist: when you add time tracking into the mix, you’re not just surviving the project—you’re succeeding because you’re able to stay on top of it.

So, why does every PM need time tracking?

Because it’s like having a crystal ball for your project’s tasks, milestones, budgets, team efficiency and productivity.

With time tracking, you can turn project apocalypse into an alignment, where tasks are organized, deadlines are met, and your team operates like clockwork (pun intended). You’ll feel like you are doing your job properly and even get a few well-deserved pats on the back.

So, in this article, we’ll explore why project management and time tracking go together like peanut butter and jelly and how this partnership can improve your team’s productivity and take you from “barely keeping it together” to “running the show like a pro AND having time for lunch breaks”.

🗒️ Oh, and just a quick note before we dive in: if you’re already familiar with the basics of project management time tracking, feel free to skip ahead to how project management and time tracking software typically work一that’s where the good stuff begins. 

What is project management time tracking?

Project management time tracking is the process of monitoring how long it takes your team members to complete their tasks and projects.

Such monitoring can give you insight into your team's productivity and allow you to evaluate project progress.

This isn’t just helpful to you, as a project manager, but to your team, as well.

Time tracking can motivate your team members to assess their own productivity by showing them how much time they spend on each task. It helps them stay focused and concentrated, ensures they meet deadlines and hit project goals. Truly, time tracking can work like a mini self-check-in for staying organized.

It lets you and the team see how time is spent. So, no more wondering where all those hours went; you can adjust, allocate resources properly, and ensure that the project stays within budget.

Why is time tracking so essential in project management?

Because it’s connected to your employees’ productivity and efficiency.

Here’s what time tracking can do for you and your team when implemented properly:

1. It helps you build trust in your team. When you trust your team with time tracking, you motivate them to work independently instead of needing to be micromanaged. This approach helps your team feel that their skills and competence are acknowledged, so you can collaborate and have more open communication.
2. It keeps your team focused and creates a culture of discipline. When team members know their time is being tracked, they’ll most likely prioritize critical tasks over smaller ones. They’ll stay on track, completing high-priority tasks first before moving to lower-priority ones; they’ll learn how to manage their workload more effectively.
3. You’ll assign tasks more mindfully. Time tracking allows you to analyze efficiency patterns for each team member and their assigned tasks. This insight can help you assign future tasks more strategically, matching activities to team members’ strengths so they can feel confident in completing tasks.
4. You’ll get better at estimating future projects. Project management time tracking provides insights into actual completion times, helping you define estimates for future projects.
5. You’ll get better at resource management. Time tracking can give you insights into when and how resources are being over- or underused. For example, if a task is taking longer than expected, you can adjust resources to ensure everything goes smoothly and your team doesn’t feel pressured or stressed.
6. It will improve transparency. You’ll be able to create accurate project progress reports with concrete data. Sharing detailed updates about how time is spent and where resources are allocated builds trust with clients and creates stronger relationships.
7. It allows your team to set personal goals. When your team sees their progress, like how quickly they complete different task types, it can work as a motivator. Tracking tasks and seeing results can contribute to building a peer recognition culture.

So, incorporating time tracking into project management isn’t just about monitoring project hours.

It’s about creating a culture of accountability, efficiency, and trust. When you track time, you can ensure everyone is working at their best. Plus, thanks to regular reports, clients will be more relaxed and satisfied, knowing you keep things in check.

Are there any cons to project hours tracking?

Yes, to some extent.

There are some potential cons and challenges you as a PM should be aware of:

1. Time tracking can, in some cases, cause more stress. When your team members feel like every minute is being monitored, it can create stress and impact their independence, so you need to find a balance between tracking time and allowing team members to work at their own pace.
2. Time tracking systems can be time-consuming (ironically). Setting up a time tracking tool and using it can be time-draining, especially if such a system requires regular oversight and other admin work to ensure the time data is accurate. Luckily, not all apps are like that. 😉
3. Team members can see time tracking as a burden. Sometimes, time tracking can be perceived as a problem rather than a solution.
4. You may get inaccurate time data. If all team members do not consistently track time, project data can be inaccurate (or incomplete). If some team members forget to log time, and others log it incorrectly, you can expect inconsistent data.
5. Your focus can switch to quantity instead of quality. If you are not careful, time tracking can put your mind on the quantity of hours worked rather than the quality of the work completed. The real danger occurs if your team members feel pressured to log more hours, leading to a focus on clocking in rather than delivering results.
6. You can focus too much on efficiency. Focusing too heavily on efficiency can cause you to overlook the importance of flexibility. Some tasks, especially creative or complex ones, require more flexibility in how time is spent.
7. Your team can be worried about their privacy. Time tracking can raise privacy concerns, and employees may feel their data is being unethically collected and compromised. You need to openly communicate what data is collected and how time data will be gathered and used.

We offer a ready-to-use reporting template you can share with your team to demonstrate how their time data is used to analyze projects. The template is available as part of our profitability course for service businesses, jump right in to download your copy!

How project time tracking software typically works

These days, many time tracking apps are available. Some of them deserve your attention; some don’t.

We are not here to list them all but to help you understand how most of them work and integrate with project management apps.

Typically, project management apps with time tracking features allow you and your team to:

• Add time entries for each task. Depending on the software, team members can log their time either manually or semi-automatically. With manual tracking, they manually calculate and enter the minutes or hours spent on each task. Semi-automatic time tracking, on the other hand, uses a timer that starts when a task begins and stops when it's paused or completed.
• Monitor working hours. Most project management software allows you to monitor the hours your team spends on their tasks, filtering it by task, employee, or project.
• Create reports. Many project management apps can automatically compile employee timesheets and productivity reports. You can review all these reports to ensure your team meets expectations and even share those reports with clients to show them your team’s progress and productivity.

Is there a way to streamline project management time tracking?

Oh, yes.

You can do so using just one tool: Memtime.

Without boring you too much with how Memtime works, here’s a quick overview of what it can do for your team:

What does this all mean to you?

It means:

Memtime may be “passive” (it requires minimal effort from you), but it helps your team focus on what matters the most, which is delivering results. It’s not just an automatic time tracking app—it’s the way to properly manage your team’s time and projects.

Best practices on project management and time tracking

Knowing why and how you track time on projects are all essential steps of project management time tracking.

But what’s even more important is how you introduce time tracking to your team to ensure maximum adoption. Check out the following 4 steps to ensure your employees recognize the importance of time tracking and get on board.

#1 Start with the “why”

Why do you want to introduce project time tracking?

You need a list of (time-related) challenges you wish to address and overcome.

So, stand up and share that list with your team.

Gather your team and say something along the lines of:

No one will say no to your request because you’ve shown your team that you’re thinking about the big picture and how it impacts everyone—them, clients, and the business.

Focusing on solutions that benefit the team, like reducing stress, shows you genuinely care about their well-being and success. When people see that your goals align with theirs, they’ll be more interested in supporting you and your ideas.

#2 Turn time tracking into a core business value

The only way you can make your employees understand the impact of time tracking on productivity and profitability is if they start to view time as a sacred resource—a resource that they give your company, and you want to ensure they are fairly compensated for.

To support your rhetoric with action, allocate time for time tracking across the board. Block 10 minutes daily in everyone’s calendars (yes, including managers and executives) to demonstrate that you make time for your new core business value. Not to mention the drastically improved accuracy of project data when hours are logged daily.

#3 Embrace the pushback

Instead of rolling your eyes every time an employee makes a snarky comment about a new time tracking method, embrace each comment with grace.

Because一let’s face it一there’s going to be an adoption period and learning curve. Your job is to ensure your team is on board and has no issue with the time tracking setup, processes, and new ways of working. Lead by example and demonstrate that you are also tracking your time.

With Memtime, employee pushback is minimal, and the adoption period is almost non-existent. Teams don’t feel like they have a task waiting for them at the end of the day (to manually calculate all the hours spent working). Memtime doesn’t impact their routine; it seamlessly integrates with it.

#4 Share results on improved project performance with your team

As a PM, you should periodically create project time tracking reports to help you make informed decisions around resource allocation.

But don’t just stop there. Share the insights and results with your team so they can be aware of how time tracking affects project success, their collaboration and client satisfaction.

You don’t have to use an AI tool to create a fancy presentation. You can just send your team a Slack message and mention you’ll periodically inform them about past project results and plans for the upcoming ones.

Plus, we have a ready-to-use profitability reporting template as part of our free course for businesses, so you can include it in your presentation or report. Our four-chapter course explains how to calculate and optimize three KPIs to grow your company’s net profit to 30%. Check it out!

You can share the following data with your team:

• What the most time-consuming parts of projects were.
• What the quickest parts of the projects were.
• Which team member put in the most hours.
• Which project or task category required the most hours.
• What your concerns for the upcoming projects are.
• Tasks you look forward to.

Wrapping it up

There you have it!

Time tracking in project management is not just about monitoring hours—it’s about increasing productivity, and ensuring everyone on the team is moving toward shared goals.

And please remember, time is a non-renewable resource. Once it’s gone, you can’t get it back, so it’s important to use it wisely. An automated time tracking tool like Memtime can ensure you keep an eye on deadlines and deliverables, and stay organized and stress-free.

I dare you: try Memtime for free and witness your team becoming more focused, and your clients more satisfied. You'll not only run the show like a pro—you’ll have time to breathe, go on breaks, and even celebrate your team’s successes. Who wouldn’t want that?! 🎉