When you think of theft at work, missing equipment or money typically comes to mind. However, there’s another type of workplace theft and employers may not even realize the fraud is going on.
Wastage (or "theft") of time is more common than many employers realize, and it can cost companies thousands of dollars each year.
Preventing time theft in the workplace is becoming a priority, but this type of fraud isn’t always easy to detect.
Common Ways Employees Steal Time
Altering Time Cards
Time cards are an effective way of tracking employee time. Each employee has a time card for the pay period and shoves it into a clock when they start and leave a shift. Since they aren't manually jotting down their daily hours, the idea is they can’t falsify records.
While time clocks are harder to beat, employees still find some ingenious ways to falsify their hours. Another employee may be clocking someone else in and out. There’s also the common excuse of "I forgot to clock in at the start of my shift", but even adding a few minutes here and there can quickly add up. Sometimes, it’s enough to trigger overtime, and this means more money in the employee’s pocket and less profits for the employer.
Extending or Taking Unauthorized Breaks
By law,
employees are required to take breaks throughout the day. Employers ignoring this rule can face hefty fines and other penalties. Even though most businesses give their staff anywhere from 30 minutes to an hour for lunch, some still manage to take advantage of the required breaks.
Once again, we’re back to having someone else clock them in. They may still be enjoying lunch but their card says they’re hard at work. The same also applies to required breaks. Sometimes, a 15-minute break can turn into 30 minutes ... but the card doesn’t show it.
Even though cigarette smoking is down, this hasn’t stopped some people from heading to the doors every hour or so for a short break. People may not be lighting up as frequently, but they still like to spend a few minutes checking their phones and catching up on workplace gossip. It’s a little harder to get away with unauthorized breaks in smaller companies, because employers typically have an easier time keeping tabs on their staff ... but it still happens.
These few minutes throughout the day may not seem like much. After all, it’s not like anyone is stealing an hour or so... But these frequent short breaks can quickly add up to lost hours. Productivity and efficiency go down which is always bad news for a business’s operating budget.
Preventing Time Theft in the Workplace
You can always hire someone to keep an eye on the clock and install security cameras throughout the workplace with the sole purpose of watching your staff. This can be effective at preventing abuse. But it’s a little excessive and not always feasible. Do you really want to hire and pay someone to sit by the clock and check each person as they’re clocking in or out?
Installing a security system is expensive and your staff may not appreciate being watched continuously throughout their shift. So, what are some better solutions?
Install Time Tracking Software
Instead of relying on clocks, consider upgrading to
time-tracking software. The software runs off of a mobile app employees and employers have access to, and allows employees to clock in and out.
This app also allows employers to track where their staff are. For example, you may notice that someone is clocked in but the app is indicating they’re out of the building. So now you know there’s a conversation you need to have with them.
If your staff are worried about being tracked during off hours, they can easily disable the tracking function if they’re not on the clock.
Create and Follow Through on Disciplinary Actions
Remember that your employees will probably continue to steal time if there aren’t any consequences. After all, if you don’t follow through with the penalties, it’s basically the same as not having any! Formalizing a set of penalties is a great way of dissuading people from breaking the rules. But make sure your people are aware of the potential penalties before you start handing them out!
Boost Your Bottom Line by Preventing Time Theft
Time theft may initially appear as a minor issue, but its financial implications can be significant when examined closely. Investing in employee tracking software, despite the associated costs, can be a prudent decision in the long run. This is because the cumulative cost of paying staff for not working often comfortably exceeds any investment in such tracking systems.
And by implementing these tools, businesses can gain a more accurate understanding of employee work patterns, leading to more efficient workforce management and potentially substantial savings in labor costs.
