Employee Time Theft – How Much Is It Costing Your Business?

Employee Time Theft – How Much Is It Costing Your Business?

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Employee time theft can be a secret killer for the budget in a small Australian business. He failed to prove that he can steal funds from a business that could have been invested back into the business.

Handwritten free timesheets produce theft of employee time. What is employee time theft? Theft of employee time is when an employee reports that they worked more hours of paid work than they should have. As a manager or small business owner, you may feel that you know how much your employees work, that they fill out your manual time sheet every week and you pay the same. But let’s look at the manual process of the time sheet and see how, even at best, manual time sheets lead to payments in excess of the employees’ salaries.

More than 75% of Australian companies have 20 employees or less. Most companies of this size can not afford a full-time HR manager, the small business owner is left to manage employees over their existing workload. So what do we think small and medium businesses are doing to manage their employees’ work schedule? Usually, it is a manual time sheet next to the lunch room or desk. Employees completed start and end times on the sheet at the end of the week. It is possible for the Supervisor to check the time sheets, calculate the working hours, approve the hours and pass the time sheet written on the accounts for the processing of the wages.

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With no hour clock or unparalleled clock system, what happened to the hourly employee’s work schedule? Let’s go through the process. What time did the employee work? You can be sure that the handwritten time sheet has the correct start time to the minute. At what time did the employee actually show up for work? The employee rounded the start time and wrote the time “rounded employee” in the time sheet. How long did the employee take for lunch? The time sheet will probably say clean blocks of time, 30 minutes, 60 minutes, etc. But how long did they really take to rest? At the end of the week, when the employee sits down to fill out the week time sheet, the employee must complete their start and end times for each day. How good is your employee’s memory of working hours after a week of work? The handwritten time sheet is transmitted to the Manager for calculation and approval. The Manger then has to reduce the rates of payment of the calculator and of the work schedule, fewer times of interruption, in addition to all applicable penalty rates and a total of those times. In addition to the manual calculation process, the Manger must also be constantly aware of the hours in minute calculations versus hundredths of an hour for the totals to be correct. This process can lead to a manager with less than 40 employees, not less than 4 hours per week, to complete. And after that process, the payroll person will manually enter these times into his payroll software/ free timesheet.

The business lost time with the employee rounding off their start and finishing times on the time sheet and not having a system in place to guarantee the accuracy of start / finish and bankruptcy times. The company also paid a Manager, who generally has a higher pay rate, an unnecessary time for them to feel and calculate the total hours of work manually. How much does this pay period cost?

So what systems are available for a company that seeks to reduce or eliminate employee time theft? There are many options available from pocket watches to slide card time clocks to biometric or digital time clocks. A biometric or fingerprint time clock immediately guarantees the accuracy of the signal input / output times, since only that employee can record their time.

Typically, a company that installs a digital print time clock immediately sees a savings of approximately 5% off the employee’s hourly wage bill. What works in dollars saved per week? If a small business has about 20 employees with $ 15 per hour working full time, their weekly wage income will total more than $ 12,000, and this does not include workers’ compensation, retirement or payroll rights at the top. Thus, a saving of 5%, implementing a fingerprint time clock, could save about $ 600 per week, or $ 31,200 per year plus extras.

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