The Payroll Solutions Blog

Time theft is an often overlooked problem that many businesses face and it is costly.

Time theft is when an employee gets paid for more hours than they worked.

Time theft occurs at many times during the day. The main places time theft occurs is when employees falsify time sheets by changing start time and end time as well as breaks. Tardiness also affects time theft as the employee is not actually working at the time that they are supposed to. This means that you are paying for your employees to be late! Extended breaks and unauthorized overtime are also considerations that must be looked at for time theft. If you give your employees a 30-minute paid lunch and they take a 45-minute break you are losing more money. Buddy clocking is also one of the major ways that time theft occurs. Let's think of this scenario:

Mechanic Martin is supposed to be at work by 8am. It is 8am and he hasn't left home yet. Martin calls fellow employee Doug and explains that he will be late. Doug then finds Martin's timecard and clocks him in to work so Martin doesn't get into trouble. Martin finally shows up at 8:45 and begins working. The problem? You just paid Martin for 45 minutes of work. Lets say that Martin makes $16/hour and he is late once a week: That $12 x 52 weeks a year, that's $624 just for Martin, and he isn't the only one.

Time keeping software can solve this problem. Timekeeping requires the individual to login, and it is all electronic and documented. An employee has many options for timekeeping including; mobile phone login, swipe card login, online login, as well as a variety of biometric login capabilities. If your employee is required to swipe a card to clock in as well as provide his fingerprint, he cannot be paid while still at home.

Time keeping software is affordable, especially considering how much money companies lose due to time theft.

How can FlexChecks help? We offer the most up-to-date time keeping software with a variety of options. Check out our website or call us today! 

www.flexchecks.com

If your business is looking for ways to remain profitable and drive revenue time and attendance software could be a solution for you. Many companies don’t realize that they can reduce labor costs significantly by implementing an automated time and attendance software.

Automated time keeping using time and attendance software has been proven to increase business efficiency as well as save money. Businesses who do not implement such technology could be negatively impacting their bottom line and their workplace. Here are some things to consider about manual timekeeping:

Human error accounts for approximately 1 to 8 percent of gross labor costs in time keeping. This can account for $6,240 to $49,920 annually, depending on the complexity of the data totaled.

Time and Attendance Software can:

• Reduce or eliminate disputes regarding paid or unpaid time. 
• Allows both employee and employer access to the electronic record of time.
• Eliminate human error, which can be a very time-consuming and unprofitable problem.
• Reduce wasted (non-worked) minutes

Did you know that if 15 employees have just 4 extra minutes for which they are paid when they were not actually working, your business may be paying an additional 1,380 minutes, or 24 hours of extra pay per month. At $10.00 per hour average, that’s $240 or $2,880 per year.

While most large companies use automated timekeeping to track employee hours and pay, many small businesses often do not realize how time and attendance software would benefit them.