As a business owner, you must know how to recognize time theft, as its shocking effects can include reduced productivity and lower morale. The longer it occurs, the heavier and more unfair burden that honest, hardworking employees also bear.
Further compounding this type of employee theft is its prevalence. Digital publication Corporate Vision Magazine cited data from a survey that found 43% of employees said they committed time theft deliberately.
If you familiarize yourself with how employees can "steal" time from their employers, you can take proactive steps to prevent it and its severe consequences from impacting your workers and organization.
How Serious Is Time Theft?
Time theft, which occurs whenever an employee accepts payment for company time that they didn't actually work, is a severe problem that affects a business's bottom line. It also impacts honest, hardworking employees.
Workers who commit such illegal activities can face valid termination and lawsuits.
In the worst-case scenario, employers can pursue criminal charges. An example of when this can happen is if the employee has stolen enough time that their act causes their employer significant financial losses.
How Do Employees Usually Commit Time Theft?
Data from Exploding Topics shows that the most common method used by employees to commit time theft is false recording, which 45% of time thieves supposedly employ. It involves tactics like recording inaccurate times on timesheets or clocking in early and then clocking out late.
A less obvious and seemingly "innocent" method is when an employee uses company time for personal reasons. Replying to the occasional text message (e.g., by saying "I'm at work, talk to you later...") may seem alright, but some employees overdo it by:
- Taking long, frequent personal phone calls
- Online shopping
- Web browsing for personal reasons
Buddy punching is another tactic. It happens when an employee who is late or absent gets another employee to clock them in.
How Does Time Theft Impact Businesses?
Time theft impacts businesses by draining company finances, primarily by paying for clocked-in hours that "time-thieving" employees haven't done any actual work for. The time they haven't done work further robs companies of productivity, resulting in more profit losses.
Reduced Productivity
Whenever employees commit time theft, overall worker productivity dips, as they don't work during the time they claim they have. Instead, they use this time to do other things that aren't job-related, leaving them with less time to do what the company is paying them for.
Having less time to do their actual jobs results in delayed work, which, at some point, may then prompt employees to rush and cut corners in an attempt to meet deadlines. The quantity and quality of their output drop, and in some cases, they may not even complete their work on time.
All that causes a significant reduction in worker productivity.
Profit Losses
The lower an organization's productivity level, the less its output, and the lower its profits. Companies also lose money as they pay salaries or wages for time that employees didn't even work.
Lower Morale
The more employees you have who steal time from the company, the less work they can do, and the more unfair the load they place on their co-workers. Employees who have to "pick up the slack" caused by unproductive workers may then start feeling resentful and have less trust in management.
The longer that goes on, the lower employee morale gets, and the more likely honest and hardworking but overworked people are to quit.
How Companies Can Prevent Time Theft
Whether or not you suspect you have "time thieves" in the workplace, you must implement stringent attendance policies regarding clocking in and clocking out, and the consequences of violations. Have your employees undergo training for these rules, and encourage them to report any offenders.
If you're still relying on a traditional, manual punch clock, it's time to modernize and invest in upgraded time tracking tools.
An excellent example of an advanced system that uses more innovative technology is this affordable fingerprint time clock. Because it uses biometrics (fingerprints) to clock employees in and out, it can prevent buddy punching.
It's also wise to deploy employee monitoring tools designed to stop or minimize time theft from excessive breaks and digital or personal distractions. With these tools, you can track employee activity and productivity using screencaptures, keystroke logging, and website filtering.
Frequently Asked Questions
Is Time Theft Hard to Prove?
Yes, you might find it challenging to prove time theft, as you'd need to have concrete evidence that an employee is committing the act. With active, high-tech oversight, however, you're more likely to be able to gather proof with ease.
If you have field workers, for instance, you can use GPS logs to confirm they're at their job site as they say they are. You can also track office workers' use of company time with employee productivity monitoring and time tracking tools, which create digital activity logs and reports.
Another is to use login records, productivity/time tracking reports, and security footage. They can help you confirm whether your employees who say they were working were at their posts and being productive.
Can Time Theft Be a Felony?
As they say, "time is money," so if the worker has repeatedly committed time theft, and the total amount of time they've stolen is significant, then yes, what they've done may constitute a felony. The amount varies in each state, usually based on the threshold amount for stolen goods.
As World Population Review points out, most states have a threshold of $1,000 to $1,500 for the purposes of categorizing theft as felonies. In 22 states, it's a felony to steal goods worth over $1,000.
A business in any of those states may then sue an employee who has stolen over $1,000 worth of the company's time, and the court may convict the accused of a felony.
Stop Time Theft in the Workplace
Time theft can rob your business of valuable company time, productivity, and profits. It also places an unfair burden on your honest employees.
You should, therefore, do what you can as an employer to prevent such illicit acts and consider investing in advanced time clocks and employee monitoring systems.
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This article was prepared by an independent contributor and helps us continue to deliver quality news and information.
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