Why Actual Timekeeping is Better Than Estimated Labor Allocations [SUBSCRIBERS-ONLY]

Labor is the largest and most precious resource for nonprofit organizations. Managing labor and directing how this valuable resource will be used are the bases for the most critical management decisions. However, too often nonprofits default to using estimated labor allocations, which is a disservice and often yields misleading results. Using actual contemporaneous timekeeping is the best method to track labor hours and observe and manage the impact that labor has on operations, resources, and financial health.

There are many false impressions related to using actual time tracking systems, most notably that they are difficult to manage, hard to get staff to accept, and not worth the effort. These false impressions tend to stem from misunderstanding and not attempting to implement timekeeping systems based on real-time efforts. The fact is that transitioning to actual timekeeping is a relatively easily achievable goal that yields far superior results and is a generally accepted best practice.