How to Eliminate Time Theft
Time theft is an unfortunate reality for many business owners. It can have huge impacts on labor costs as well as staff productivity and morale. Without the correct tools and systems, time theft can be difficult to catch, and even harder to stamp out.
What is time theft?
Time theft occurs when an employee bills for the time they have not worked or accepts remuneration for the time that has not been attributed to work.
The most common causes of time theft include:
- Staff running late to work, and fudging start times.
- Staff staying late after work to accrue unauthorized overtime or allowances.
- Staff taking extended breaks.
- Where a team member clocks out for another team member.
- Staff not submitting correct hours for leave requests or sick pay.
How much is time theft costing your business?
Labor is often regarded as one of the biggest expenses in running a business, alongside the cost of goods and utilities. For industries that rely heavily on high staffing numbers, such as hospitality, it is particularly important that managers are not only creating schedules to meet labor budgets and KPIs but also take control to enforce the schedule.
Unfortunately, when time theft is left unchecked it can cause unexpected additional costs, including reduced staff productivity, profitability, and can negatively impact staff who do the right thing.
Even time theft that isn’t malicious can add up. For example, according to a study conducted by Tanda, the average business has approximately five minutes misappropriated every shift, just from staff clocking in or out late.* While five minutes may sound negligible, it can quickly add up over a month and even a year.
A team of 30 employees working five days a week could rack up an additional 50 hours/ month in misappropriated time. This could end up costing the business approximately $362.50/ month, and over $4350/ year (based on the average federal minimum wage for 2017).
How to eliminate time theft?
While most employers would like to believe that their staff is honest and trustworthy when filling out their timesheets, there are unfortunately a few who ruin it for everyone. Systems such as paper timesheets, excel spreadsheets, or outdated Bundy clocks, are highly susceptible to allowing time theft in a business. They fail to accurately track staff attendance due to their lack of verification and functionality. This is because there is no way to confirm that staff finished and started when they say they did, or that they were, in fact, the ones who signed off their timesheet in the first place.
Using a cloud based time and attendance system is the only way to ensure accurate staff attendance records, verify that the correct staff member finished at the correct time, and ensure staff is not overpaid for work that wasn’t completed.
So what should you look for when implementing a Time and Attendance system to combat time theft in your business?
5 Must-have Time and Attendance System features to Eliminate Time Theft
1. Time Clock with Photo Verification
A time and attendance system must have a time clock device, and use both photo verification and a PIN code to confirm that the correct staff member has clocked in. This provides an indisputable solution to prevent staff getting their friends to clock in for them, or clocking in late. Fingerprint scanners will not stop time theft and have many issues that will prevent it from working effectively.
2. Smart Rounding
Now you might be thinking, surely staff could still tinker with a time clock system, if they clock in early claiming to have worked? Enter the beauty of smart rounding. Smart rounding prevents staff from taking advantage of clocking in early or late when they haven’t been working. It is customizable and can round to the minute for staff clock ins and outs. This stops “accidental” time theft from staff clocking in before their shift starts, and clocking out after they have stopped working.
3. Complex Award Interpretation
As time and attendance is closely linked to payroll, it’s extremely important that your system is able to comprehend any number of complex pay scenarios. For example, staff that stay back late, skip their break, or work over night may incur overtime or penalty rates. Thus, an Award Interpretation system must be able to transparently identify different types of overtime, penalty rates, and allowances if it is to prevent time theft.
4. Predict Correct Staff Ratios
A great time and attendance system should be able to not only record when staff start and finish work, but how many staff you need for the shift. Paying staff for the hours they actually work is the first step in optimizing your labor costs. The second step works to improve your labor efficiencies by predicting the optimum number of staff required for the shift, ensuring that you’re not over or understaffed. This type of predictive analytics software is the latest method for businesses to ensure their labor costs are under control.
5. Fast & Simple Timesheets
Using an electronic time and attendance system is pointless unless you are able to immediately generate timesheets from it. It is also vital that the system is cloud based, allowing you to easily approve timesheets from anywhere. These timesheets should be easy to use and quick to approve by utilizing technology such as autosave, fast editing, and cognitive payroll. This will allow you to complete your payroll in minutes, not hours or days.
Time theft, if not managed accordingly, has the potential cost business owners thousands of dollars every year. It is therefore important that business owners implement simple, yet effective measures, such as electronic time-keeping devices, and integrated time and attendance systems to combat time theft. Improving staff attendance tracking results in greater productivity and profitability, and can provide valuable insights into how your team works
Product Updates |
Tanda hits 1 million clock ins!
Tanda has ticked over to 1 million clock-ins! That is a lot of people showing up for work. And though we may gripe and grumble about the daily grind, one million clock-ins is something we want you to celebrate with the whole team at Tanda. Tanda has been here to help you. We have helped you make payroll simple and easy. We have helped you make time theft and wasted hours of figuring out award rates a thing of the past. But today Tanda wants to acknowledge someone else in this ever-growing time and attendance tool. We want to focus on YOU. One million clock-ins on our successful cloud-based software might seem like an intangible concept. Instead, we’d like you to think of it more as an in-Tanda-ble concept. That’s people getting up early to clock in so you have your morning coffee. That’s childcare workers all over Australia clocking in to make sure your children get the best start in early learning. That’s certified companies like Subway, Nike and Telstra moving forward in the constantly changing systems of business, time and attendance. But more importantly in many ways, that’s small businesses and the backbone of Australian industries moving forward with them too. Tanda ensures no one gets left behind, and no time or attendance goes amiss for those 1 million of you who have clocked in. Though we can’t celebrate this achievement with each and everyone of you in your office, restaurant, childcare centre, hotel or whatever space it is you run your business in, we can still thank you all here from Tanda HQ. This video isn’t much, but its a small demonstration of how excited we are for all of you. Keep up to date with more exciting news from Tanda by heading to our Facebook page and giving us the old thumbs up or follow us on Twitter and LinkedIn for more surprises to come.
Product Updates |
Introducing the New Tanda Time Clock App!
We are very excited to announce that a brand new Time clock app is here, packed with new features, more stability and a much more user-friendly design. The Time clock is a core part of Tanda and it is key to making sure you can accurately track your staff attendance. Tanda’s Time Clock app live streams employee clock ins, making it easy to track employee time and attendance. All data is stored in the system, and transferred automatically to timesheets, so you’ve always got a record of when staff are working. Since we first released the Time clock app, we have received feedback for improvements and new feature ideas! We have taken all of this feedback on-board and built a brand new app that we know you will love. What’s new? A refreshed modern design A simple and intuitive interface More guidance for users Now works on iPads Current and upcoming shift information displayed upon clock-in / out Staff can submit leave and unavailability right through the app (optional feature) Download the Time Clock app Visit the Time Clock page for more information.
Feature Updates Product Updates US Tanda |
Tanda Time Clock Now Available for the iPhone
We at Tanda are excited to let you know that our Time Clock application is now available for the iPhone. This new version adds on our existing Android, iPad, and desktop time clocks. And just like those, this has the same set of features. It lets staff clock in with their unique PIN and a selfie. The Tanda Time Clock accurately records employee attendance and compares it with the weekly roster. It also updates the timesheets automatically to the cloud and stores it offline when the device is not connected. This added presence gives added flexibility to businesses currently using our app. You can add it to complement your main time clock, decentralizing clock-ins-and-outs. You can refurbish old iPhones to serve as time clocks, instead of it taking up drawer space. It can also be the backup if, and when, your office’s main Tanda Time Clock is unavailable. Remote employees with iPhones can also use this to record attendance, wherever they may be. Click here to download the Tanda Time Clock for the iPhone. Are you a new user? Signup for free here to use Tanda to track time and attendance for your business, and so much more.