Organisations of today face a hidden challenge: employee time theft. As businesses aim to boost productivity and streamline operations, the menace of time theft quietly chips away at profits and overall efficiency.
In this comprehensive guide, we'll uncover 11 different types of employee time theft, shedding light on the subtle tactics that employees might use for stealing time. We'll discuss practical strategies and advanced technologies that companies can adopt to guard against these practices and promote a culture of trust and accountability in their workforce.
Top 11 types of employee time theft
Let's take a look at the 11 most common types of time theft in organisations and how you can avoid them:
1. Buddy punching
Buddy punching occurs when colleagues clock in or out on behalf of one another. This undermines the accuracy of attendance records, leading to financial losses. Biometric systems like fingerprint or facial recognition help prevent this issue, while fostering transparency discourages employees from engaging in the practice.
2. Time clock manipulation
Time clock manipulation involves employees intentionally altering their clock-in and clock-out times to commit time card fraud. This leads to inflated wages, increased overtime costs, and inaccurate work records.
Useful Read: Time Clock Buying Guide: Save Time, Money, and Prevent Payroll Errors
3. Extended breaks
Extended breaks occur when employees take longer-than-allowed breaks, reducing productivity and morale. Employers can enforce employee handbook policies, use attendance software, and promote responsibility to minimise abuse.
4. Unauthorised overtime
Unauthorised overtime happens when employees work extra hours without approval, leading to higher labour costs. Automated attendance systems and clear policies help control this issue.
5. Ghost employees
Ghost employees are fraudulent payroll entries created to divert funds. Regular audits, two-factor authentication, and secure payroll processing protect against this type of fraud.
6. Personal activities during work hours
Employees may engage in personal calls, online shopping, or social media during work. Employers should set clear expectations, use productivity tools, and encourage open communication about time management.
7. Misuse of paid time off
Employees may exploit PTO policies by faking sick leave or misusing time off. Tracking systems, audits, and transparent policies reduce abuse.
Useful Read: How to Respond When an Employee Calls in Sick: Best Practices and Tips
8. Working "Off the Clock"
Working off the clock leads to underreported hours and pay issues. Employers should prohibit this practice, use remote tracking tools, and stress the importance of accurate timekeeping.
9. Task padding
Task padding happens when employees deliberately extend task duration to inflate billable hours. Project management tools, transparent communication, and constructive feedback help prevent it.
10. Time theft through proxy
Employees may delegate work to others while taking credit. Enforcing disciplinary procedures, supporting fair workload balance, and promoting open communication reduce proxy theft.
11. Inflating mileage and travel expenses
Exaggerating mileage or travel claims drains company funds. Employers should require receipts, perform audits, and use automated expense tracking.
Strategies for prevention
Preventing employee time theft requires a mix of policies, monitoring, and culture-building:
- Implement a Clear Time Theft Policy: Define consequences and expectations clearly.
- Use Time Tracking Software: Advanced tracking systems provide real-time oversight.
- Foster a Positive Work Culture: Encourage engagement and reward integrity.
- Provide Training: Teach time management and emphasise fairness.
- Conduct Regular Audits: Review records to detect irregularities.
- Address Issues Promptly: Take immediate, consistent action when theft occurs.
Final thoughts
In the fight against employee time theft, Shiftbase offers powerful solutions. Employees can clock in via app or terminals, with punch times linked directly to timesheets. Features like geolocation and IP restrictions improve accuracy and reduce errors.
Gain real-time visibility of attendance and hours, and take control of your workforce management effortlessly with Shiftbase. Try our 14-day free demo and see how Shiftbase helps prevent time theft while boosting efficiency.
- Easily clock in and out
- Automatic calculation of surcharges
- Link with payroll administration
