We all know what time theft is, but does anyone really know what its effect can have on a business? There are two main ways that employees can execute time theft -- buddy punching and inaccurate time sheets.
What is the problem?
Clocking in for colleagues, aka “Buddy Punching” is a problem in companies where employees use cards, pins, or timesheets to clock-in and out of work. The cost of buddy punching alone averages 2.2% of gross payroll and is experience by 74% of organizations in the United States (Source: Nucleus Research).
Whether intentional or not, the most common form of employee time theft is inaccurately recording the amount of time that an employee has worked. By rounding up their work hours on paper time sheets, employees are able to steal time and therefore money from their employers.
What is the solution?
While every business may not think they experience time theft, chances are there is some degree of time theft taking place. It’s by investing in the right solutions that businesses can reduce this issue and save money. Newer technologies, like biometric fingerprint readers, allow for a much more sophisticated time management system. With the touch of a finger, they can quickly log and verify their attendance, instantly improving the accuracy of attendance records.
When it comes to biometric time clocks, which use an employee’s fingerprint to verify their identity before clocking them in, it appears to be significantly more difficult to cheat the system in terms of both buddy punching and inaccurate time sheets.
A biometric time and attendance system will decrease the amount of time theft your organization in two major ways:
Increase real time visibility -- Real time visibility will make sure that supervisors can easily view and approve timesheets and time off requests, and set schedules that minimize unnecessary hours worked. A lack of insight into employees’ hours can result in inefficient scheduling, leaving some people on the bench while others are overworked -- companies lose money everyday by not fully utilizing their staff. This visibility transcends single location organizations to track time and attendance by multiple locations, departments, teams, branches, etc.
Eliminate manual processes -- Eliminate time card preparation, collection and storage and cut payroll processing time. The average business wastes 4% of its payroll in clerical errors and improperly recorded time. Surprisingly there are still many organizations that rely on paper- or Excel-based systems to track time. In an era where cloud and mobile are mainstream, why does this continue to be a problem? These outdated methods often lead to data inaccuracy, productivity inefficiencies and financial loss. An automated time and attendance solution eliminates these challenges and simplifies processes when a workforce is either a single location or spread across multiple office locations.
Another benefit of an automated time and attendance solution is its ability to access historical data. By giving managers both historical and current data, they can review time worked, vacation, and sick days taken by their teams. This means managers can take any necessary action if an employee seem to be abusing the organizations time and attendance policy and get a better grasp on eliminating time theft.