In the movies, theft tends to look a certain way. It’s a roguish pickpocket on a city street, a Bonnie and Clyde-style bank robbery, or a glamorous heist a la Ocean’s Eleven. Maybe it’s a teenager shoplifting makeup at the mall or even a hold-up in a dark, forgotten alley. But in reality, one of the most common types of theft happens every day in workplaces around the world, and it’s far less glamorous.
It’s called time theft, and it happens when an employee gets paid for time they didn’t actually work. It’s often unintentional, maybe a break that runs a little longer than the allotted time. But those small bits of time can add up incredibly fast, costing businesses a fortune each year.
The genuine cost goes far beyond just money, though. It can poison team morale, kill productivity, and even put a company at legal risk.
So, what exactly is time theft, and how can you stop it?
What Does Time Theft Look Like?
- Fudging the Timesheet: This is the most straightforward kind of time theft. It’s when someone lies about the hours they worked. Maybe they came in late or left early, but they still wrote down a full day’s work. Those few extra minutes here and there might not seem like a big deal, but they add up.
- “Buddy Punching”: This one is a classic. An employee asks a co-worker to punch them in or out when they’re not there. It’s a way to get paid for hours you didn’t work, and it’s a direct betrayal of company trust.
- Personal Time on the Clock: We all get distracted sometimes, but using a lot of your paid work time for personal tasks is a major issue. This is where “cyberloafing” comes in, spending too much time on social media or online shopping instead of working. Making a bunch of personal calls or running errands on the clock also falls into this category. It’s time an employer is paying for without getting any work in return.
- Breaks That Never End: A quick coffee break that turns into a half-hour chat, or a lunch that runs fifteen minutes long. These small extensions might seem minor, but when they happen consistently, day after day, they become a form of time theft.
- Intentional Laziness: This is a bit of a gray area, but it’s still an issue. If an employee is deliberately working slowly to stretch a task out, or even worse, sleeping on the job, they are stealing time and the company’s money.
The Real Cost of Time Theft
Even though many of these actions seem small, their impact on a business is big and far-reaching.
You’re Losing Money
The most direct cost of time theft is financial. When you pay people for hours they didn’t work, you’re essentially losing money. Sure, ten minutes here or there might not seem like much at first, but when you multiply that by dozens or hundreds of employees, the financial hit becomes staggering. Over time, that loss can strain budgets and eat away at your bottom line.
Less Work Getting Done
It’s a simple fact: fewer hours worked means less work is getting done. This means time theft isn’t just about lost money; it’s about a drop in productivity. When employees aren’t focused on their tasks, the quality of their work naturally declines, and deadlines get missed.
Legal Headaches
Accurate payroll records are incredibly important. Time theft, especially through misreported hours, can skew those records. This can expose your business to costly legal issues and put you out of compliance with labor laws.
How to Prevent Time Theft
Whether it’s an honest mistake or something more intentional, the good news is you can get ahead of it and significantly reduce time theft.
First, set crystal-clear policies. Put everything in writing: what your work hours and breaks are, and what the consequences are for not following the policies.
Next, look at your tech. Consider implementing a dynamic Time and Attendance platform like Primepoint. Think about features like mobile clock-ins with GPS or biometrics. They make “buddy punching” or fudging a timesheet a thing of the past. Better technology equals less stress.
But the most powerful tool you have? Leading by example. When your managers and leaders respect the company’s time, it sends a powerful message to the entire team.
Taking a direct approach and using the right tools will make your workplace more transparent, fair, and productive for everyone.
Ready for a more robust time system? Contact us to learn more.