Are your employees stealing time?

Time theft affects businesses of every size, in every industry. Whether by work avoidance or fraudulent time tracking, there are financial repercussions for your business. Learn how to prevent it.

Two ways to prevent time theft

What is time theft?

Time theft occurs when an employee is paid for time they’ve not actually worked. This form of fraud can negatively impact a company’s productivity and bottom line.

There are five main types of time theft service companies typically experience:
1. Rounding time worked – when employees round the clock-out time, usually to the next quarter hour.
2. Buddy punching – when one employee clocks in or out for another employee.
3. Extended breaks – when employees take longer breaks than given when not required to clock out.
4. Socialising – when employees socialise rather than completing work while on the clock.
5. Unscheduled stops – when members of a distributed workforce make unscheduled stops while performing a route.

Combating time theft

1) Implementing the right technology to safeguard timekeeping practices

Time and attendance solutions can provide status updates and periodic checks. Managers can view real-time status of employee clock ins/outs, lunches and breaks so they know if employees are where they need to be at the right time. This can help prevent time fraud while lowering risk of compliance issues for your company when keeping in line with regulatory requirements.

Other solutions that help decrease time theft include biometric authentication (which lessens risk of fraud like buddy punching) or geo-location verifications.

2) Implementing the right processes to set your time and attendance protocols up for success

Oftentimes, time fraud is not malicious. By setting up clear processes, you can lessen the risk of time fraud by inadvertent or intentional means.

  • Set expectations

Create clear-cut policies about time and attendance expectations and communicate them to employees. If you use a self-service portal, have this documentation easily accessible for ongoing reference.

  • Focus on engaging employees (and recognising good work)

Employees who are engaged typically don’t look for ways to avoid work, as they are incentivised through recognition programs to continue to perform highly.

  • Check on your employees

Similar to how your clients require proof of work, perform regular audits and inspections to ensure work is being completed to scope. If activity isn’t completed, use your software solutions to initiate a check where the team member needs to respond within a certain amount of time.

With automated and mobile timekeeping options, you can also lessen the risk of fraudulent labour costs impacting your bottom line.

Your business can take steps to combat time theft by using the right technology and strengthening your time and attendance processes. Learn more about how TEAM Software solutions can help minimise risk of time theft.

Request a demo today.