As a business owner theft is always a fear; we put systems into place to prevent and ward off thievery, but have you ever considered the theft that could be happening right underneath your nose? Non-exempt employees (hourly) are costing companies about $400 billion annually in lost productivity. Whether it is punching in early, staying late, or exaggerating hours, employee time theft is a real issue faced by employers everywhere. If your business is made up of mostly exempt employees, you need not worry. However if you’re dealing with hourly workers you may want to take a look at your current processes and tighten them up a bit.
Is Your Software Doing Enough?
Maybe you don’t even use a timekeeping software, or maybe you do, but it doesn’t require any more than a personal pin code to punch in and out. Here are some quick statistics gathered by our friends at Software Advice to give you more insight on employee time theft:
If you’re using an online web portal to track employee time, then on average you can count on 40 percent of your employees ‘stealing’ time. Mounted wall clocks account for 18 percent of time theft (these are the ones referenced earlier with a personal identification code). Paper forms come in at 17 percent, followed by mobile devices at 10 percent, paper punch cards at 5 percent, and lastly, biometric clocks at 3 percent. Interested in learning more about biometric time clocks? Us too.
Perks of Going Biometric
So what is it about biometric clocks that cuts down on time theft? Well, in order for employees to punch in and out they need either their finger or their face. This method clearly presents a struggle for those employees who are use to punching in for their friends. Unless you’re there in front of the clock you don’t get to punch in. Of course this method isn’t foolproof; there are still 3 percent of employees who cheat the system using biometric time clocks, but what a difference it is between biometric and online web portal punch-in.
How Do I Get Biometric Clocks?
In my experience it is always a good idea to get time clocks through your payroll provider, assuming you are also running your timekeeping through them as well. Check with your provider to see what types of clocks they offer - typically you can order biometric clocks, but keep in mind they will come with a heftier price tag. While it can be a bit of an expense to switch to biometric time clocks, they will pay dividends in the end compared to what you will save in employee time theft.