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What Is Employee Time Theft and How to Stop It

What Is Employee Time Theft?

Time theft is a tactic that some employees use to steal a few minutes of time at the end of each day, which often goes unnoticed by management. Employee time theft occurs when an employee comes into work just a little earlier or later than they’re scheduled to and heads straight for the punch clock so as not to be recorded as being late or leaving early.

An estimated $19 billion in lost wages were due to employee time theft, not including overtime. Employee time theft occurs when employees clock in a little earlier or later than they actually start working, which adds up over the course of a year. This wastes employer’s money because they pay for hours that are not being worked by their employees. Employee time theft also wastes taxpayer dollars because many businesses have contracts with the government and could lose those contracts if any fraudulent activity is reported.

According to a recent study, employee time theft costs industries such as transportation and utilities approximately $14 million per year. Employee time tracking issues can be especially problematic in certain fields where manual labor is involved. If an individual clock in before he begins workday, this would include the time it takes him to walk to the site of his work, put on protective gear (such as safety glasses), and any other activities. Employee clocking issues can be difficult for employers because they are unable to catch every instance of time theft by their employees.

How to Stop Employee Time Theft?

To manage employee clocking issues, many companies now use automated solutions that primarily focus on GPS tracking. Some of these systems track an individual’s location via GPS, while others only keep track of cell towers.” These devices can tell where a worker is located during working hours. If he is not in the location that he claims, then he may clock in at another location or do something else with his time that wastes company resources.

Manual labor jobs aren’t the only industries that have problems with employee time theft. Many retail stores are also affected. Employee clocking issues are the most problematic during the holiday season. Retail employees are often “understaffed” at this time of year to meet demands, which means that individuals who work in these positions may be unable to finish all of their daily tasks by the end of their shift. Some employees will clock out just before their shift is over or they will leave early, which wastes employer money and hurts customer service levels because there aren’t enough people working.

Employers should only use automated solutions if they have carefully considered both the benefits and drawbacks associated with GPS tracking devices. Employee location data can easily be accessed by employers, so it’s important people to know how their information could be used. Employee time theft is a serious issue, but employers should make sure that they are not crossing any legal boundaries when it comes to tracking their employees.

The following article shows why automated employee clocking solutions are the most effective way to stop employee time theft. Employee location data can be accessed by employers depending on your company’s policy, so it’s important to carefully consider all applicable elements of GPS tracking before implementing this solution in your workplace. Employee time sheet monitoring software is the best way for companies to track employees while maintaining their privacy.

Alma Reed is an author and researcher dedicated to enhancing productivity. He is deeply interested in areas like time management, increasing productivity, and fostering healthy routines. Through his writing, he aims to assist people in boosting their job performance and attaining an ideal balance between work and life.

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