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Posted 20th July 2024

Are Employees Stealing Time At Work? Tips On Preventing Time Theft In The Workplace

A minute or two one day and the same the next, over a week or so this can quickly add up. Time theft can be an expensive problem for any business, and it’s not always easy to spot it shows up in your operating budget.

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Are Employees Stealing Time At Work? Tips On Preventing Time Theft In The Workplace

A minute or two one day and the same the next, over a week or so this can quickly add up. Time theft can be an expensive problem for any business, and it’s not always easy to spot it shows up in your operating budget.

Sometimes, employees don’t even realize they’re guilty of committing time theft. Unfortunately, some individuals view it as an easy way of padding their paychecks. Whether it’s intentional or an accident, businesses are looking for effective methods to prevent time theft in the workplace.

Strategies For Preventing Time Theft In The Workplace

The American Society of Employers estimates around 20% of a company’s profits can be lost due to time theft. This equals around $400 billion annually, and for entrepreneurs, and these kinds of massive losses can be financially devastating.

Even larger corporations can feel the sting when they’re losing revenue due to time theft. If you’re ready to stop time theft at your business, here are some effective strategies.

Implement Time Tracking Software

If your employees are still using a pen to fill out paper timecards, you are probably paying your staff for the minutes they’re not working. Manually writing down arrival and departure times isn’t effective or efficient.

Employees can easily make mistakes on their timecards or just guess at the time. Some employees may even be rounding up the time. For example, they arrive at work a minute or so after 8 am but still write down that they showed up precisely on the hour.

Punch clocks are a little more precise and make it a little more difficult for employees to steal time. Sure, one employee may clock another one in before they arrive but there’s an effective way of preventing this behavior.

Using time tracking software, you can more easily hold employees accountable for any stolen minutes. The software tracks employees’ work hours and alerts you if their timecards indicate they’re on the clock longer than scheduled.

Another fun software feature is the ability to monitor employee productivity: the software can track keystrokes and mouse clicks, indicating a staff member is working productively at their desk. Time tracking software even monitors which websites employees visit and for how long.

For example, if a staff member is assigned work on an Excel spreadsheet but is browsing the latest fashions, you’ll instantly know. Now you have the option of deducting the wasted time from their timecard or simply encouraging the staff member to get back to work.

Time tracking apps, you can pretty much eliminate any issues with employees clocking each other in while also boosting productivity.

Boost Employee Morale

Would it surprise you to learn that time theft tends to increase when employee morale is low? Employee morale affects productivity and this is something you don’t want to see falling. Low morale also impacts customer satisfaction. When staff morale is down, employees are less engaged with consumers.

Time theft is often a direct result of low morale. Employees simply don’t care about the business. They notice their coworkers engaging in the behavior and figure out why not get a little more on each paycheck.

Turnover rates also tend to be high when morale declines and this is something else that can negatively affect your bottom line. Finding, hiring, and training new staff is time-consuming and expensive. You can save time and money by ensuring your employees are happy.

How can you boost employee morale? A good place to start is by listening to your employees. Find out what they want and need from their workplace environment. Make changes where possible and let your staff know if something can’t be accomplished.

Have Concise Policies for Attendance and Time

Sometimes, time theft occurs because your policies are a little confusing. However, the opposite is true when you implement concise time and attendance policies, and some examples include:

  • Having a set procedure for clocking in and out
  • Clear overtime rules
  • Whether or not socializing while on the clock is permitted
  • Consequences of time theft

You want to display the procedures in an area where all employees have access. A good place is by the time clock if possible. If not, an employee break room or locker room are other good options. When employees have a set procedure to follow, they’re less likely to develop bad habits like stealing time at work.

Be Ready to Be Flexible and Understanding

Regardless of whether you have everyone showing up at the office every day, a hybrid workforce, or a primarily remote staff, time theft will probably still occasionally occur. Sometimes, not even the most effective strategies can prevent all forms of time theft. Don’t forget, your team is human and this means mistakes are bound to happen.

Instead of automatically presuming the employee is trying to steal time, have a discussion. Find out if the time theft is a mistake. Maybe the employee needed to take an emergency break and didn’t have time to clock out.

Is Time Theft Illegal?

Even though time theft is considered a type of stealing, you’re probably not going to be able to have the offending employee charged and arrested. Time theft is difficult to prove, even with tracking software.

You also need to be aware of the Fair Labor Standards Act. The law requires all employers to pay their staff for hours worked. Yes, this includes any time you believe may be stolen. If you refuse to pay the stolen time, the employee can sue you for unpaid wages—chances are, the employee will win this lawsuit.

You Can Minimize Employee Time Theft In the Workplace

Reducing employee time theft is a growing priority for both entrepreneurs and established business owners, as the costs can quickly add up. Fortunately, there are effective strategies to help prevent time theft in the workplace.

However, it’s essential to listen to your employees, as time theft can sometimes be accidental. Understanding their perspectives can lead to more effective solutions and a fairer work environment.

Categories: Leadership


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