When it comes to time theft, some employees can get highly creative, which means your workforce management system should be constantly evolving to stay ahead of the curve.
Think of it: nearly three quarters of U.S. businesses are plagued by employee time theft, according to the American Payroll Association. At a time where virtually every business is seeking ways to reign in labor costs, time theft continues to cost employers more than $400 billion a year.
So what’s an employer with hourly workers to do? For one thing, make sure you and your managers can recognize all the common time theft hustles. For another, make sure your workforce management system has safeguards in place to nip all such maneuvers in the bud.
Is your time tracking system up to par? Find out—take our quick five-question quiz.
Does Your Time Tracking System Prevent Employees from Inflating their Time?
Can you be sure that your employees are always truthful and accurate in recording their clock in/ clock out times? If your company is still among those using paper timesheets, chances are, you can’t.
In that event, simply moving to an automated time tracking system will be a major improvement for you. Because time clocks record punches electronically, there is no opportunity for employees to round, finesse or otherwise fudge their in and out times.
But not all time clocks have the same capabilities. Be aware: when it comes to curbing other forms of time theft, some cloud based time and attendance systems are much more powerful than others.
Does Your Cloud Based Time and Attendance System Capture Meal Breaks?
Whether meal breaks are paid or unpaid, it’s important to be able to track their duration. Taking extended meal breaks is an easy, tempting form of time theft. If your workforce management system isn’t recording meal breaks, there’s a good chance that you’re paying employees for time they haven’t earned.
Of course, tracking meal breaks is important from a labor compliance standpoint as well. If you operate in a state that mandates meal breaks, you need a time tracking system that not only ensures they’re taken properly but documents your compliance.
Does Your Workforce Management System Provide Foolproof Tracking of Mobile Employees?
Mobile employees have always been among the hardest to track, whether you employ full-time drivers or workers who move from one site to another.
Either way, you need a workforce management system that includes an advanced mobile time tracking app with GPS verification. By capturing GPS coordinates, employers can confirm that workers are truly on the job when clocking in and out.
In fact, some of the most powerful mobile time tracking systems offer geo-tracking, which automatically captures an employee’s GPS location at defined intervals throughout the day. That way, you know mobile employees are where they should be.
Does Your Time Tracking System Stop Swipe Card Tricks and Swaps?
One problem with cloud based time and attendance systems that rely on badges and swipe cards is that they offer employees a host of ways to outmaneuver the time tracking system. “I forgot my card”…”I lost my card”…”my card didn’t work”…”I loaned her my card”—if this is something your managers hear all the time, your swipe card system is letting you down.
Workforce management systems that employ biometric technologies eliminate the problems associated with lost, forgotten and defective badges and swipe cards. Because biometrics work by measuring an individual’s unique physical characteristics to verify identity, employees need only present themselves at the clock to punch in and out.
Furthermore, fingerprint time clocks and facial recognition time clocks are the best defense of what is perhaps the most nefarious form of time theft—see our last question.
Does Your Workforce Management System Prevent Buddy Punching?
Buddy punching is when one employee punches in or out for another. It can be accomplished with swipe cards, badges, time cards and most certainly paper timesheets. According to Nucleus Research, buddy punching costs employers an average of 2.2% of gross payroll. Calculate what that translates to for your business!
But there is a solution: time tracking systems that use fingerprint time clocks and/or facial recognition time clocks make buddy punching virtually impossible. In a recent survey of employees who admit to committing time theft, biometric time clocks were unanimously voted the hardest time-tracking device to outsmart. It’s very hard to trick biometric technology.
Is It Time to Look Into a New Workforce Management System?
If your current time tracking system isn’t fully protecting you against time theft, why not learn more about EPAY’s advanced workforce management system? It offers fully developed safeguards against all top five forms of time theft, thanks to a robust mobile time tracking app, easy-to-use fingerprint time clocks, facial recognition time clocks and much more.
In fact, we are poised to launch new, cutting-edge facial recognition time clocks and mobile time tracking apps that will take time theft prevention to a whole new level.