Time Theft

Meaning of Time theft:

Time theft is a serious issue that can cost businesses a significant amount of money. It occurs when employees are paid for time they did not work. Time theft can have a significant impact on a business's bottom line. According to a study, employers lose $400 billion per year to time theft.

Example of Time theft:

➤ Reece is a store associate who is paid $10 per hour.

➤ His work hours are from 10 am to 5 pm, Monday through Friday.

➤ However, Reece often clocks in at 10:15 am and leaves at 4:45 pm.

➤ If Reece steals 30 minutes of work daily, he essentially steals $5 daily.

➤ Over the course of a week, this amounts to $25.

➤ Over the course of a month, it amounts to $100.

➤ And over the course of a year, it amounts to $1,200.

How Employees are stealing time from their Employers?

• Buddy punching: is when an employee clocks in for another employee who is late or absent. Buddy punching costs US employers $373 million per year.
• Clocking in early or staying late and not working: An employee clocks in before their shift starts or stays after their shift ends but does not work during that time.
• Falsifying timesheets: An employee records incorrect hours worked on their timesheet. They may round off work hours or add extra few minutes in the timesheet. 80% of small businesses find errors in employees' timesheets.
• Using company time for personal purposes: This includes using social media, shopping, chatting with colleagues, making personal calls, or running personal errands during work hours.
• Long breaks: Taking longer breaks than the fixed time is a common thing but leads to time theft.

What can businesses do to avoid time theft?

1. Have clear policies and procedures in place: These policies should outline what constitutes time theft and the consequences for employees who engage in it.
2. Use time tracking software: Time tracking software can help businesses to track employee hours and identify potential time theft issues.
3. Conduct regular audits: Businesses should conduct regular audits of employee timesheets to ensure accuracy.
4. Encourage a culture of trust and accountability: Employees who feel trusted and accountable are less likely to engage in time theft.

Businesses can protect their bottom line by preventing time theft and ensuring all employees are working for the hours they are paid for