How to track remote employee hours with software

If your business has people working from home, on the road or in different parts of the UK, keeping an accurate handle on hours worked is suddenly less straightforward. Paper timesheets and a flurry of WhatsApp messages might have done the job when you were a single office; they start to creak when you’ve got 10–200 staff, spread across towns from Glasgow to Brighton.

Why use software (and why now)

Software won’t replace good management, but it does two very useful things: it gives consistent records for payroll, invoicing and compliance, and it saves managers time spent chasing people for details. For UK firms that want predictable payroll costs and clear evidence for HMRC or any disputes, that consistency matters. It also reduces quiet resentment in teams—when hours are logged properly, people feel treated fairly.

What to expect from modern time-tracking tools

Don’t be seduced by fancy dashboards. For a business of your size, focus on features that drive business outcomes:

  • Reliable time capture (manual entries, timers, or calendar imports)
  • Approval workflows so managers can sign off hours quickly
  • Integration with your payroll and accounting software to avoid rekeying
  • Simple reporting for jobs, projects and clients so you can see profitability
  • Audit trails and exportable records for compliance and tax checks

These are the items that cut time from admin, reduce payroll errors and protect your reputation if hours are questioned.

Privacy and legal basics for UK employers

Recording hours is legitimate, but you must handle data properly. Keep it proportionate and transparent. Staff should know what’s being recorded, why, how long it will be kept and who can see it. That’s good GDPR practice and it’s common sense. Keep copies of policy communications and make sure managers can explain the system without getting legalese-y.

Picking the right solution for a 10–200 person business

Match the tool to the problem. If you’re primarily payroll-focused, pick software with robust payroll exports. If you sell time to clients, choose one with project tracking and easy invoicing. Don’t let shiny features fool you—pick what reduces time spent on admin and cuts errors.

Also consider vendor stability and local support. UK-based support or familiarity with UK payroll practices will save time when you’re integrating or when small issues crop up during your first pay runs. For practical advice on setting policies and tools for hybrid teams, look for providers who can talk through real-world roll-outs and the common snags businesses face. For example, guidance on support for remote working often includes both policy and tooling, which is exactly what you’ll need.

Implementing the software without grief

1. Define what you want to measure

Decide whether you need clock-in/clock-out for attendance, task-level tracking for billing, or a blended approach. Clear objectives make vendor selection and training far easier.

2. Pilot with a representative group

Run the system with a few teams—field staff, office-based and hybrid workers—so you spot quirks early. Pilots reveal real behaviour that demos don’t: who remembers to start timers, who needs reminders, and which approval paths slow things down.

3. Keep the process simple

Complex approval chains kill adoption. Aim for one or two approvers per team and automated nudges for missed submissions. Simplicity drives compliance and cuts manager time.

4. Train managers, not just staff

Managers are the gatekeepers of timesheets. Train them on approving work, resolving disputes and running reports that matter to the business—profitability by job, overtime hot-spots, or client billing snapshots.

5. Integrate with payroll and accounting

Integrations remove manual steps and mistakes. Even a simple CSV export you don’t have to massage can be a big win. Test a whole pay run before you go live to avoid surprises.

Common pitfalls—and how to dodge them

  • Rolling out too many features at once: start small and add functions as teams adopt the basics.
  • Ignoring the culture piece: tracking without explaining purpose looks like surveillance. Frame it as fairness and efficiency.
  • Failing to reconcile: match logged hours with payroll and client invoices regularly so errors are caught early.
  • Not keeping managers accountable: a system is only as good as the people who own the approvals.

Measuring success

Track a few simple KPIs for the first six months: reduction in payroll errors, time saved on admin, invoice accuracy for client work and adherence to policy (late or missing timesheets). These metrics show business impact—less time on admin, fewer payroll queries, and better cashflow from timely invoicing.

Practical tips from the trenches

In my experience working with firms across the UK, the simplest wins matter most: agreed categories for work so everyone logs the same thing; a single weekly cut-off for submissions; and short reminders built into the software, not relying on managers to chase. Local differences exist—field teams in coastal regions may prefer mobile-first experiences, while London-based office staff like calendar integrations—but the steady performers are the systems that stay straightforward.

Quick checklist before you commit

  • Do the features match your payroll and billing needs?
  • Can the system scale from 10 to 200 staff without more admin?
  • Is the vendor familiar with UK payroll and data rules?
  • Will your managers actually use the approvals and reports?
  • Have you planned a short pilot and a simple training plan?

FAQ

Is it legal to track remote employee hours?

Yes, it is legal provided you are transparent, keep the data proportionate and follow GDPR principles. Give employees clear notice about what you record and why. If you’re unsure, get basic HR or legal guidance—ACAS has plain guidance that many businesses use as a starting point.

Can time-tracking software handle holiday, sickness and overtime?

Most tools include leave and absence modules or integrate with HR systems. They can flag overtime and export the figures to payroll. Make sure your chosen system matches your company policies on holiday accrual and pay rules before you go live.

Will tracking harm trust with staff?

It doesn’t have to. Explain that the aim is fairness and accuracy—avoiding underpayment or disputes—and keep the smallest dataset that meets your needs. In practice, teams accept systems quickly if they make pay and invoicing smoother.

What about freelancers and contractors?

Contractors can be asked to log hours for client billing, but ensure contracts reflect expectations. For IR35 and employment status questions, handle records carefully and get specialist advice if needed.

Final thoughts

Tracking remote employee hours with software is less about timers and more about business outcomes: fewer payroll headaches, faster invoicing, and clearer evidence if questions arise. If you approach the project with clear objectives, a short pilot, and simple rules, you’ll save time and protect cashflow—without turning your business into a clock-watching factory.

Want a calmer payroll week, fewer billing disputes and better visibility over staff time? Start with a clear objective, pick the features that remove manual work, run a short pilot and train the managers who will own the process. Do that and you’ll free up hours (and your peace of mind) faster than you think.