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Time theft and how it effects your business

Time theft in the workplace

Time theft in your workplace is a silent cost that could be costing you more than you think - and you may not even know it's occurring!

In the workplace, time theft occurs when an employee accepts pay from their employer for work that they have not actually done, or for time they have not actually put into their work - instead they may be spending time on personal tasks or outside of work commitments. The employee is not actually completing the necessary amount of work during their shift and it is considered a theft of time from the company.

Generally consistent among all industries and workplaces, time theft can be difficult to identify and even harder to prevent.

Besides the financial implications it can cause, time theft can also be detrimental to your businesses growth, create low morale, create negative relationships with customers, and can potentially result in your business not being successful.

Types of time theft to watch out for



1. Performing personal tasks during their workday



This can be as simple as an employee going to get a coffee during their work hours, it all adds up.

2. Employees clocking in for each other



This is for those workplaces that use manual clock in systems rather than modernised software.

3. Taking long breaks



Your employee has been gone for 15 minutes over their designated lunch break. Doesn’t seem like much right? Add this up for a full-time staff member, that’s an hour and 15 minutes each week you’re paying your employee to sit around and not work.

4. Starting late/finishing early



Again, it may not seem like 10 minutes of lateness a day means anything but add it up over time and you’ll find that 10 minutes is costing you a lot of money.

5. Putting through unauthorised over-time



This could be as simple as your employee rounding their work time to the nearest hour. It may not equate to much, but that’s money you’re spending on an employee who isn’t contributing to the success of your business.

6. Rostering oversight



Some workplaces still use the outdated paper copy rosters. This can make it difficult for managers to keep up with who is supposed to be working when. Switching to a digital software like RosterElf’s time clock app, can be the perfect solution to make your rostering more efficient and transparent.

How to stop time theft:



So, you’ve made the first step and established that time theft is happening amongst your employees, now what? You’re at the hard part, it can be difficult to break the cycle with your employees especially if it is a common behaviour.

Firstly, hiring a new employee is your first chance to set expectations about what is, and isn’t, tolerated. In extreme cases, you may need to get rid of an employee for time theft.

In 2009, the Small Business Fair Dismissal Code came into effect which is relevant to Australian businesses with less than 15 employees. The code relates to serious misconduct like theft, which includes time theft. It can be considered on the same level as stealing stock or money, and as an employer you may have grounds for instant dismissal.

Although it can be frustrating knowing your employees are stealing time, the best approach may be to have a discussion with them first. Sometimes time theft can be the result of an employee not knowing what tasks they are supposed to be fulfilling. Set some tasks for those quieter periods so there is always something for your employees to do.

Time-theft can be a difficult concept to manage, and fix, but by implementing small changes you can definitely get your employees back on track, and effectively using their time while at work.

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