The True Cost of Time Theft and How to Prevent It With a Work Time Clock

Time theft is one of the most costly things that can occur in the workplace. Not only does time theft cost a business actual money, but it can be an incredibly demoralizing force amongst employees. Rampant time theft can lead to lost productivity, employee conflicts, and an overall loss of business. Using a work time clock has several benefits that can mitigate or even eliminate time theft in many cases.

Managing Breaks and Other Off Clock Time With a Work Time Clock

One way employees commit time theft is by taking breaks and lunches without following proper punch in and punch out procedure. This often goes unnoticed as employees are expected, and according to labor laws, mandated to take breaks during working hours. A work time clock monitors time continuously and records whether an employee punches out for their breaks or lunches. In most cases, you can configure a time clock to set reminders and even notify management when an employee doesn’t take their properly scheduled breaks.

Several unintended consequences result from time theft. In the case of not correctly tracking break time, this can lead to labor law compliance issues, which can cost businesses time, money, and more. Breaks are mandated in accordance with federal and state labor laws. When employees fail to record their breaks correctly, this shows the business is not properly following the law. Regardless of intent, this can be disastrous for businesses, so work tracking software is essential.

Reporting Time Theft and Improving Morale With a Work Time Clock

One of the highest costs of time theft is the loss of employee morale. Employees can often become discouraged when they see a fellow employee repeatedly commit time theft without facing any repercussions. Even worse, an employee may be tempted to commit time theft themselves after seeing a fellow employee succeed without fear of punishment.

A time attendance clock can eliminate this issue by allowing managers to monitor employee time and ensure that time spent on the clock is time actually spent working. This includes time that is tracked that should be break time or unnecessary overtime.

The continuous monitoring of time allows managers to record how often an employee fails to punch out on time or fails to take mandated breaks. In some cases, an employee online timecard system can actively monitor the work an employee is doing, which allows a manager to see if a worker is unproductive. Once this activity is noticed and reported, a manager can then take the appropriate disciplinary action regarding the employee committing the time theft.

The Financial Cost of Time Theft and How a Work Time Clock Can Help

Apart from the cost to productivity and employee morale, time theft has a measurable financial cost for businesses. Many times when time theft is committed, it is intentional, and the employee is collecting payment for time they are not working. This equates to wages that a business must payout, while the employee does not actively produce a benefit for those wages.

This can include breaks that are taken while still on the clock, extending hours by doing non-work related tasks or any time spent on the clock for the business that does not equate to productive activity for that business. While there are a few instances where an employee may be on the clock and unable to work, in most cases, the employee is intentionally unproductive. Often, online timesheet software can record employee productivity by monitoring what they are doing when they are punched in.

Tracking employee attendance and work hours is a tedious, complicated, and time-consuming process. When you add in occurrences of time theft, it makes that process even more challenging. Luckily, with a time and attendance app, you can track employee work hours and productivity and monitor attendance to ensure employees are only working when they’re scheduled. Keeping time theft at bay will improve profits across the board and ensure employee morale remains as high as possible.

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