Millions of employers deal with time theft, but simple policy shifts can fix it

Your employees may sometimes clock in for each other when someone is late, or even take longer breaks than you allow them to. Come up with smart policies to address time theft. When you review your attendance records and have a clear timekeeping policy, you'll avoid losses.

According to Business.com, around 24% of workers manipulate the number of hours they work or simply overreport. You're probably losing a lot of money on payroll because of this issue.

Creating policies that help you reduce your labor overhead will also protect your profits.

What Are Some Examples of Time Theft?

Employees who work remotely logging in for their shift but using most of the time to do personal errands. You might notice projects taking longer to complete because people are barely working.

Some employees also steal time through buddy punching. They clock in for a worker who's running late or one who won't show up for their shift. You'll end up paying more money than what you actually owe your workers.

Is Time Theft Hard to Prove?

In some cases, yes. If you're only relying on paper timesheets or basic punch systems, you might find it hard to prove time theft. Consider getting an employee punch-in clock to make your work much easier.

Once your employees start using their biometrics to clock in to work, cases of time theft will reduce. Smart systems also help you keep records with less stress.

Preventing Time Theft With Practical Policy Shift

Your policies should encourage timekeeping integrity instead of making workers feel like you don't trust them at all. Ensure all the rules you use are easy to understand. It will encourage compliance and protect your relationship with employees.

Create a Clear Timekeeping Policy

If your policies are vague, they're just creating more room for time theft. Don't assume your employees will automatically know what you expect from them. Create a clear timekeeping policy and ensure you mention:

  • What time employees should clock in
  • When they can take breaks
  • How long these breaks should be
  • The time they should leave work

An employee may need someone else to cover their shift because they have an emergency or a doctor's appointment. Ensure they know how they should go about such an issue. Giving examples they'll easily understand helps you avoid confusion.

Let Every Employee Be Responsible for Their Own Punches

Each employee should understand their responsibility for accurate time records. When creating your policy, make it clear that they shouldn't:

  • Share their credentials
  • Ask their coworkers to punch in for them
  • Alter time records without approval

Some employees probably alter their time records simply because they made a mistake the first time.

If you add restrictions without explaining why, they might feel confused. Mention how inaccurate records affect things like payroll and employee scheduling. Once they see the impact of their actions, they are more likely to understand why you've created those policies.

Remind them of these rules once in a while too. It will help you boost staff accountability. You should also let them know what to do in case they forget to record their time.

Review Attendance Patterns Regularly

Don't wait until several months go by to address attendance problems. If you do a monthly review, you'll be able to spot repeated issues before they turn into expensive habits. These are some things you should be watching out for:

  • Low shift compliance
  • Frequent missed punches
  • Unusual overtime
  • Repeated late arrivals from specific employees

It's not a good idea to take action against your employee without investigating the issue first. A manager might approve overtime and forget to update the schedule. If you accuse the employee of time theft because you didn't have that information, it will affect their work morale.

Try to always ask questions and review the records before taking disciplinary action.

Apply the Rules to Everyone

No one should be exempt from your time policies, even if they have a high rank. They should actually be setting a good example for the rest of the employees.

If a policy applies to hourly workers, let your managers know if they also need to follow it. Never be lenient on some people because you have a closer connection. Other employees might start ignoring the rules too.

You don't need to punish every incident of time theft. Create a predictable process for repeated or intentional violations.

If you have a good discipline plan, you'll be able to reduce the chances of someone repeating the same mistake. Consider giving people several warnings or offering more training before escalating the issue.

Frequently Asked Questions

What Should Happen When an Employee Forgets to Clock Out?

Give them a simple way to report a missed punch. If the tool you use allows them to submit a correction request, guide them on how to do so. You'll have more accurate records once you start correcting clock-out mistakes early instead of waiting until a review.

Can Managers Cause Timekeeping Problems Too?

Yes. As you create your policy, ensure you also cover supervisors. They can cause timekeeping issues if they keep:

  • Approving incorrect hours
  • Changing schedules without updating the system
  • Telling employees to work outside recorded hours

When your managers understand their timekeeping role well, they'll handle time theft issues better. Give them regular training. Never assume they'll know which rules apply to them and which ones are meant for their teams.

How Often Should I Review Timekeeping Rules?

It depends. You might notice a few things you need to change after using your timekeeping rules for just a few weeks. Be open to reviewing them when necessary. It will help you keep up with labor rules and staffing needs.

If your employees keep asking the same questions, your time policies aren't as clear as you thought. Make the needed changes and encourage your teams to give you feedback on the new version.

Avoiding Time Theft

Using better policies in your company can help you avoid time theft without frustrating your employees. Don't always assume workers are intentionally stealing from you. Investigating the issue helps you address the root cause before you even act.

Ensure you also train your managers so they understand their timekeeping role. Read the latest Boston news on our page.

This article was prepared by an independent contributor and helps us continue to deliver quality news and information.