A Comprehensive Guide to Preventing Employee Time Theft in 2024

When a worker uses company time for purposes unrelated to their job, it’s known as time theft. An employee may steal up to 4.5 hours a week from their employer, according to estimates. Even though everyone gets downtime at work, the amount of idle time can add up to a significant amount, even if the individual is unaware that they are doing it.

What is the reason behind time theft?

There’s always a motive, just like with other types of theft. The circumstances around time theft must be ideal for the majority of employees who steal from their employers. in particular, opportunity, justification, and incentive.

Time theft has been adjusted to match the fraud triangle, which was developed by criminologist Donald R. Cressey to illustrate the mental processes of those who steal and commit fraud. Many believe that if they arrive at work five minutes early or leave five minutes late, it won’t affect anything because it’s only five minutes. When it occurs frequently, though, the problem gets worse.

Employees who steal time do so either because they believe they won’t be caught or because they don’t think they have enough time in the day.

The majority of employees—69%—agree that they do not precisely track their time.

Is time theft a crime?

Although it’s false, it can be difficult to establish that time theft occurred. It is illegal to withhold wages from employees due to time theft because the Fair Labor Standards Act mandates that they get the minimum wage.

The simplest way to deal with this kind of theft is to blame, retrain, or fire the employees who are engaged. It keeps you as far away from legal problems as it can.

While knowing the why is crucial, it’s also necessary to know the how, so let’s discuss how time theft occurs.

43% of hourly workers have overstated their number of hours worked, according to Forbes.

How workers are stealing company time?

Finding out why time theft happens and how to stop the common techniques of time theft requires an understanding of employees’ motivations. It is important to realize that time stealing does not always occur intentionally.

Three-quarters (75%) of all firms are affected by the problem of time theft.

Identifying time theft by employees

Although it can be challenging to identify, there are always techniques to be sure. Sometimes physical acts of theft, like buddy punching, include someone purposely clocking in for someone who isn’t there.

You can also check for unapproved overtime and keep an eye on when staff members clock in and exit by keeping track of their break periods.

Preventing time theft starts with training your management and HR staff on how to spot it.

Every dollar that a business makes can be lost by up to 20% due to time theft.

Let’s examine a few instances of time theft that occur in businesses:

1. Punching your buddy

2. Manipulating the time clock

3. Prolonged rest periods

5. Unauthorized extended stay

6. Personal tasks conducted while at work

7. Inflating mileage and travel expenses

8. Working “Off the Clock”

Stopping theft of employee time

Time theft is a pervasive problem that is challenging to control. The difference between losing money and making it can be determined by learning how to avoid it. In particular, being aware of the best strategies to avoid it without drawing negative attention to yourself or landing you in legal trouble.

A single instance of time theft might cost you up to 7% of your yearly salary.

Typical techniques to stop time theft by employees include:

• Put time tracking in motion automatically.
• Create a thorough policy.
• Enhance the culture at work.

The ideas listed below can be implemented in a variety of ways to increase productivity at work.

Utilize time-tracking software

There is nothing to prevent someone from recording their time incorrectly whether you are using paper timesheets or Excel sheets. The good news is that theft can be avoided with the help of technology.

A crucial instrument in the fight against time theft is time-tracking software. Because software has built-in safeguards to help prevent theft, it is considerably more difficult for employees to commit time theft.

Clearly define your attendance policies

Preventing the loss of your business’s precious time and finances begins with having an attendance policy that is explicit and includes information regarding time theft. Workers won’t know what is acceptable and what isn’t if there is no policy.

Time theft policies should include:

• Details regarding the harm that time stealing does to both individuals and businesses.
• The penalties associated with time stealing.
• The timekeeping and attendance systems that your business will be using.

The employees will be better able to adjust to policy changes if you are open and honest with them. There is no better time than the present to have a policy in place for your business.

Keep an eye on workers

Employee monitoring may sound harsh, but if you are open and honest with them, it may be simpler for them to get used to it. The duration of the process may vary based on the kind of surveillance you’re using. Common techniques include timekeeping, attendance records, and even allocated projects.

Keep an eye out for indicators of employee disengagement when conducting your surveillance, such as tardiness in answering emails or phone calls, late submission of assignments, conspicuous absence from meetings, and recurrent errors.

Bottomline

You can boost productivity in your company now that you understand time theft and how to prevent it. You’re ready for anything, including adding new procedures to an old policy handbook or setting up a brand-new timekeeping system.

Check out Lystloc for real-time employee monitoring software if you’re searching for a solution for time tracking and employee monitoring.

What is your opinion on how businesses should handle time theft? For you, what has worked?