Engineering projects can be among the most volatile of any sector. Providing premium time-tracking tools for employees, such as an automated time-tracking system or a time-tracking app, allows PMOs real-time visibility and access to time-based reports. With authentic employee-tracked data using online timesheets, time-tracking reports will provide your professional services firm with accurate guidance for future resourcing, hiring, and strategic direction.

Importance of time tracking for engineering firms

Time tracking has a range of benefits that apply to all sectors. However, customized engineering time-tracking software helps target specific pain points within the industry.

Since 2021, the engineering and consultancy services sector's revenue has begun to bounce back. In the US, the E&C industry began 2022 with a strong revenue growth of 8% (Deloitte, 2023 Outlook Study). However, according to the same outlook study from Deloitte, they state that “a closer look at current market dynamics suggests that 2023 will likely experience differentiated growth rates across the different industry segments.” Ensuring you can accurately track an employee's billable hours to invoice clients will be crucial for remaining profitable through economic changes. Accurate billing practices, supported by precise work hours tracking, are key to maintaining financial health in this sector.

The following benefits make targeted solutions for professional service firms better than off-the-shelf software that doesn't consider industry requirements. Effective time-tracking practices help engineering firms achieve the following:

1. Better time management

Time tracking allows engineering firms to monitor time spent on tasks, which creates insights that lead to optimisation.

For example, engineering timesheet software can provide visibility into where your contractors are spending time. Fostering a culture of timesheet submission and accuracy will reap rewards as you’ll have more accurate data, on time.

2. Effective project management

As with all professional service firms, wasted time can drastically impact your profit margin. Automating your timekeeping process will eliminate tedious, ineffective tracking. Manual project management is already extremely hands-on, especially as managers track progress against timelines and budgets. Implementing a tool to automate this process will preserve employee time and allow them to take on more projects, increasing your profit. Managing projects effectively becomes more straightforward when you have the right tools in place.

3. Help prioritise project tasks

Resource planning can appear complicated, but time-tracking software allows project managers to schedule resources according to critical priorities. You can then prioritise work based who’s available to do the work, and identify priorities or bottlenecks before they become an issue.

In Deloitte's 2023 engineering and construction industry outlook, they reported that 4/5 firms cited supply chain disruptions as one of their company's top three challenges coming into 2023. Remaining agile during roadblocks firms can't control will allow teams to carry on with their top-priority work.

4. Improved communication

Cloud-based time-tracking software allows critical business metrics, such as budget burned on a project, to be accessible to specified staff and stakeholders.

Increasing your visibility into your projects saves you time chasing up project managers for reports. In Projectworks, you can export real-time reports as needed to keep you informed and reduce miscommunications between you and your management team.

In addition, adjusting your resourcing and forecasted revenue with visibility over the long-term effects of change will enable your firm to bring clear action plans to clients when the unexpected happens. This transparency will keep your clients happy and your consultants on the same page.

5. Reduces overhead expenses

The most significant efficiency for engineering firms is in allowing them to scale operations and automate processes through business activities such as HR and payroll, project management and contract tendering.

With Projectworks, the data from timesheets feeds through to various areas to cut down on time to complete manual management tasks.

Features to look for in time tracking software for engineers

Not all time-tracking software is created equal. When looking for the right tools, engineering firms should consider finding a solution that is tailor-made for the professional services industry.

1. Time tracking flexibility

The people who need to use time-tracking software can be based in a range of different places. For example, you might have people in the field, working remotely, in the office, or in different time zones.

The best time-tracking tools are user-friendly on different devices and browsers, with customizable interfaces that can be tailored to the user's needs.

2. Reporting features

If you are tracking time well, then the data collected can be very useful and repurposed into informative reports. These allow you to analyze performance and make decisions that could influence productivity. Informative reports can provide key information about how a person spends their day.

We offer several valuable reports to enhance your project management and resource allocation. Our Hours Worked by Person report provides a detailed breakdown by project, showing who has been working on what and when.

Additionally, our Utilization Target report offers insights into key metrics at the organizational level, helping you understand how your team is being utilized. This report also drills down to the individual level for more precise analysis.

Finally, our Resourcing vs. Actually Worked report gives you a clear picture of where resources were allocated versus where they were actually utilized, based on the timesheets submitted.

3. Integrations with other software

For maximum efficiency, software should be compatible with other systems already in use. As well as creating more value, software with built-in integrations with the tools that support your engineering firm shows you it's been developed with engineering users in mind.

Good integrations save you from having to double-handle data so that invoicing can be done in your time-tracking system, connected to time entries, and then those invoices are integrated with the accounting system. Ensuring billing rates are aligned with tracked time through effective integration reduces errors and boosts efficiency.

Conclusion

Time tracking has always been important in the engineering sector. However, the rise in remote work and the use of contractors has made it even more significant.

Modern software makes this more accessible than ever. You have insights at your fingertips, which is vital for quick thinking when the unexpected happens.