Biometric clocking systems are among the various tools companies are using to curb time theft, tackle absenteeism, and maximize productivity as a whole. These kinds of clocking systems use unique characteristics, such as the iris, fingerprints, and shape of hand to record attendance. It therefore completely eradicates most types of time theft, such as buddy punching where employees clock in/clock out for fellow employees.
Time theft occurs when employees accept compensation for time they haven't worked for. This kind of theft comes in many forms, from buddy punching, fudging timesheets, and using work hours for play time and so on. In short, an employee is considered to be stealing time whenever he or she is on the clock or clocked in but not on the job.
Time theft not only comes in many forms, it also comes in many levels of severity that can be hard to detect without a dependable time and attendance system.
Here are 6 shocking facts about time theft that will make you want to implement a modern clocking system immediately
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a. 19% of employees in the U.S. have admitted to occasionally clock in/clock out for absent employees (buddy punching). This roughly translates to 1 in every 5 employees admitting to time theft. Buddy punching is not only immoral; it also drains the finances of a business.
b. According to a recent study by CareerBuilder, 28% of the participants admitted to calling in sick even when they were in perfect health. It is estimated that unplanned absenteeism can cost a business more than $3,600 per year per hourly employee, and more than $2,650 per year per salaried employee.
c. It is also estimated that in the U.S. alone, employers lose more than $400 billion in lost productivity every single year.
d. Moreover, 74% of employers in the U.S. experience severe payroll losses that are directly related to buddy punching. Such losses average to 2.2% of gross payroll from just one type of time theft-buddy punching (where employee clock in/clock out for each other for one reason or another).
e. According to study results from the American Payroll Association, the average worker steals 4-5 hours every week.
f. Last but not least, it is believed that without the help of a modern clocking system, 75% of time thieves will never get caught.
Fortunately, digital and biometric clocking systems are resolving these issues and allowing businesses to manage the time they spend on particular projects effectively and also to accelerate the payroll process. If you are worried about time theft, then its time to invest in software that will help you stop time thieves.