Dear Employers, Are You Losing Money To Time Theft?

Dear Employers, Are You Losing Money To Time Theft?

Research indicates thattime theft is a serious issue which costs American businesses approximately $400 billion annually. There are many ways in which employees steal time and recognizing and responding to this problem requires taking proactive steps while enacting preventive measures and punishing those who do it.

Ways In Which Employees Steal Time

There are various ways in which workers engage in time theft. Understanding how they do it will better enable you to stop it. Signs to watch for include:

  • Rounding up when completing their time sheets
  • Surfing the internet during work hours
  • Taking breaks which are longer than allowed
  • Asking co-workers to cover for them by punching in
  • Taking personal calls during work hours

Individually, these things may not seem like a big deal. But over time minutes turn into hours, and this lost time results in lost revenue. Did you know that the average worker wastes 4.5 hours per week? Over the course of a year this is the equivalent of 6 vacation weeks. Time theft, whether it comes in the form of clerical mistakes or employees who round up the hours they work, will cost you at least 4 percent of your payroll. Depending on the size of your company this could translate into millions of dollars.

Time theft is not specific to one industry, and occurs throughout a variety of sectors. Fortunately, there are a number of ways in which you can combat it. While reducing time theft completely is not realistic, there are a number of procedures you can enact to significantly reduce its occurrence.

Time And Labor Management Systems

Time and labor management systems are tools which better enable employers to keep track of attendance, time and schedules. It can also help you with ACA and various aspects of payroll. All these functions are contained with one software solution. These systems automate labor monitoring and as such will make it easier for you to identify workers who are stealing theft, so that you can respond accordingly.

Better yet, these systems can also boost the overall productivity of your firm. This is done through integration with mobile devices like smartphones and tablet PCs and the ability to provide tracking information which is actionable. This provides management with a track record of performance data which will allow them to deal with time theft issues immediately.

One reason why many employees got away with time theft in the past is due to the difficulty in tracking time worked. Advances in technology have changed the equation, giving management greater control over who is doing what and when. Time and labor management systems can also boost employee retention by utilizing an accountability structure that can benefit employees that perform at a higher level through various financial incentives and rewards, which encourage their co-workers to do the same in turn. Time and labor management systems will also help you identify areas that need improvement, as well as providing a greater understanding of the activity of your staff and their behavior.