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8th June 2023

How to prevent time theft with Time and Attendance Software

With remote working becoming more prominent in day-to-day working life it can be hard to know whether staff are tracking their time correctly. Those that aren’t tracking their time correctly can result in time theft.

This essentially means that staff members get paid for hours they haven’t worked and even research shows that 43% of hourly workers surveyed admitted that they exaggerate the amount of hours they worked during their shifts.

This blog will explore everything you need to know about time theft and how you can prevent it.

Types of time theft

Using paper timesheets can often be the start of time theft as it’s so easy for employees to claim hours they’ve worked. Types of time theft can include:

●       Timesheet fraud - This is where hours inputted on timesheets claim that more hours have been worked than they actually have

●       Buddy punching - This is where other staff members clock in or out for other staff members

●       Proxy attendance - This is where an employee doesn’t turn up to work at all but gets another staff member to clock in for them

●       Elongated breaks and lunches - This is where people take a longer lunch break than they were supposed to but still record it for a smaller period of time

●       Unauthorised overtime - This is where people work overtime that isn’t authorised by their manager


The benefits of Time and Attendance software

Time and Attendance software can make it easier for companies to track staff’s time and understand whether they’ve been clocking more hours than they should have done. Other benefits can include:

Accurate time tracking

Time and Attendance software can provide accurate time tracking meaning it can be easy for you to compare recorded hours with hours listed on the rota. This means you can ensure staff are paid accurately and that the company doesn’t make a loss. 

Enhanced compliance

Implementing Time and Attendance software can help businesses comply with labour laws through automating overtime rules, break policies and leave entitlements. This makes sure that employees are treated fairly, encouraging the reduction of time theft. 

Streamlined payroll processing

Through integrating your payroll and Time and attendance software your data can be collected efficiently and effectively giving you the opportunity to review data and see if there are any issues relating to time theft such as staff members taking longer lunch breaks or clocking off work early.

How can you prevent time theft?

Despite there being quite a few ways in which time theft can be committed there are actually a few ways in which you can prevent it, such as:

Implement Time and Attendance software

As suggested above there are many benefits installing Time and Attendance software has, including reducing the risk of time theft. 

Be clear on your attendance policies

If you’re finding that time theft is a problem within your business, it may be worth implementing clear company policies, such as outlining your expectations on punctuality, attendance and lengths of breaks. You may also want to consider introducing disciplinary actions for those not following these expectations to show that your company won’t stand for anyone partaking in time theft.

Consider using biometric identification

Introducing biometric identification features like fingerprint or eye scanning can eliminate the possibility of buddy punching and reduce the risk of time theft significantly. 

Complete regular audits

Completing regular audits allows you to understand and review the data you’ve captured relating to employee work hours. It gives you the opportunity to find any issues and irregularities and prove to staff members that this behaviour isn’t acceptable. 

Focus on employee engagement and communication

It’s important to communicate honestly and openly with your staff members and it’s just as important for them to do the same. This promotes a great working environment which in itself could reduce the risk of time theft. This can also encourage employees to speak up about any concerns or observations they have helping to further reduce incidents of time theft in the future.

Ultimately time theft can have huge negative impacts on businesses financially as well as their productivity and morale levels. Through implementing Time and Attendance software and other introducing policies and clear communication within your business you should be able to combat and reduce the risks your company faces regarding time theft.

To discover more about how Time and Attendance software could help you, request a demo with Payescape today!

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