Are you looking for viable solutions that protect your business from employee time theft? If so, you should consider using a time clock app. This is an online timecard system that allows you to keep track of your employee’s working hours when they punch in and out.
Employee time theft is a common threat to both large and small organizations. It occurs when an employee’s working hours are inaccurate, resulting in high payroll costs and low returns. While these inaccuracies can occur as a result of human errors, most times, they’re caused by dishonest staff when they enter false hours into a payroll system.
Statistics show that 75% of all employees commit wage theft at least once in their careers, while 37% make it a habit. Therefore, it’s vital to utilize a time clock app to ensure that your staff doesn’t engage in time theft.
How time theft can negatively impact your business
Employee wage theft is a threat to your business as it reduces employee productivity, which in turn affects your performance and profitability. A recent study shows that approximately 20% of every dollar a company earns gets lost to time and wage theft.
Additionally, employee wage theft contributes to nearly 30% or corporate bankruptcy in the United States. Therefore, wage theft robs businesses and organizations of their revenue, jeopardizing their growth and overall success.
How using a time clock app prevents wage theft
Here are some ways in which time and attendance apps eliminate and stop employee time theft.
Accurate clock in and out systems
Team time tracking solutions allow your staff to punch in and out accurately, giving you detailed records of employee working hours which are easily accessible from anywhere and at any time. You can then use these records to calculate billable hours and payroll processing, ensuring no worker is overpaid or underpaid.
GPS tracking software
Most time keeper apps have GPS location abilities which only allow your staff to punch in or out when they’re within the worksite. It does this by locking or disabling the GPS time tracking app when your team isn’t in your defined working area. Businesses that have locations in multiple regions or perform jobs on construction sites can benefit from this feature.
This way, you don’t have to micromanage all your employees and ensure they are at their respective sites daily. The app does it for you, preventing your employees from billing hours they did not work.
Eliminates buddy punching
Buddy punching occurs when employees ask their co-workers to punch them in or out when they’re late for work or leave early. At times, they can also ask co-workers to punch them out later than usual to receive compensation for working “extra” hours.
Luckily, with a time tracking system, each employee gets their own login information to punch in or out along with time theft deterrent features such as facial recognition. Hence, workers can’t participate in buddy punching since they don’t have access to multiple employee time clock profiles. Other apps also only allow their employee to punch in and out from one device, reducing time fraud.
Instead, a staff member has to log into their time clock profile, punch in while they’re on-site, and punch out when they leave.
Eliminates errors by up to 50%
A time tracking system eliminates any human errors when it comes to tracking attendance, time off, paid or unpaid breaks, by providing you with detailed employee data on working hours.
A time tracking app is a great way to improve employee productivity while reducing wage theft in your organization. For more effectiveness, educate your staff on time tracking and how it can benefit them and your organization.