If you're wondering whether you should invest in time and attendance software, consider this: A survey of more than 500 employees nationwide by Michael G. Kessler & Associates, Ltd, found that 87 percent of employees admitted to falsifying their time sheets. That's a large percentage of employees stealing time from the company and being paid for hours that they did not work.
Employee theft of all kinds results in $200 billion in losses to U.S. businesses annually -- with time and property theft being the most common ways employees rob their bosses.
What might not seem like a big deal -- an employee showing up to work a few minutes late one day or spending 10 minutes on Facebook every morning, for example -- can add up to hours and days of lost labor every year for businesses.
Some of the most common ways employees steal time include:
- Buddy punching
- Proxy attendance
- Late arrival
- Early departures
- Unauthorized overtime
- Taking long breaks
- Non-work-related computer use
- Socializing or making personal calls during work hours
Research by the University of Southern California and the University of Illinois found that paying employees a higher salary reduces the likelihood that they will steal from you, according to an article on cnbc.com.
But if your business has suffered from the economic downturn, giving everybody a raise to encourage honesty might not be an option.
Purchasing time and attendance software is a good solution for curbing employee time theft. Not only should your employees have trouble falsifying the time they've worked, but there will be less room for payroll errors and less time needed calculating old-fashioned time sheets. Some software providers estimate that using a time and attendance system can result in an 80 percent reduction in manual effort and a 3 percent savings in total payroll.
Time and attendance software allows you to collect time via badge readers, biometrics, computers or mobile devices (either a phone or mobile time clock); manage your time collection data; and easily process the collected time for payroll.
- Improve employee productivity by eliminating the need for timely calculations of overtime, shift differentials, rate calculations, etc. with automation.
- Track and restrict unnecessary overtime
- Eliminate the need to calculate time cards
- Better manage employee scheduling; whether it's group, individual, rotational or demand-based scheduling
- Eliminate time card preparation, collection and storage
- Cut payroll processing time
- Reduce instances of tardiness
- Eliminate unauthorized hours
- Eliminate the need to calculate sick, vacation or compensation time accrural
- Identify and eliminate time abuses
- Track labor distribution by tracking time worked by location, department, branch, cost center job, position, project or any other metric
- Allow management to enforce work hours limits and improve employee safety
- Eliminate disputes over hours worked and pay
- Improve relations with employees, including eliminating favoritism