Stealing Time: How to Tackle Time Theft in Your Company

Time theft. Although it may sound dramatic, it is a real issue that can devastate your company’s productivity and bottom line. Here’s the ugly truth. though. There will be times when employees misuse company time. Even seemingly minor distractions like social media scrolling, personal errands, or unnecessary breaks can significantly hinder productivity.

However, let’s step back before making accusations. Time theft may not always be malicious. Often, it’s a symptom of a larger issue, such as unclear expectations, disengagement, or inadequate tools.

The good news? By taking the right approach, you can effectively combat time theft. Through this blog post, you will gain knowledge and strategies for identifying, preventing, and eventually minimizing time theft.

The Many Faces of Time Theft

In some cases, time theft does not involve blatant disregard for the work at hand. As it manifests in different ways, it is important to recognize its diversity.

• Personal errands during work hours. For example, taking extended lunch breaks, making doctor appointments without taking time off, or running errands on company time.
• Excessive internet browsing. Shopping online — using social media, and visiting irrelevant websites can steal valuable work time.
• Exaggerating break times. When an employee frequently steps away “for a quick coffee” or takes longer breaks than planned. Over time, this all adds up.
• Buddy punching. Employees will likely manipulate their time cards or clocks if they can. When they’re running late, they will ask a trusted coworker to clock them in for them. This is referred to as buddy punching. The practice of buddy punching costs U.S. employers $373 million in unnecessary labor costs each year.
• “Presenteeism.” The act of being physically present but not mentally attentive. This results in an inefficient and low-quality work output.
• Rounding up. It is common for employees to round up their time — mainly if they can input their time into a program, such as an Excel sheet. For example, if an employee leaves the office at 5:55, they’ll round up to 6:00.
• Unrealistic deadlines. To meet unrealistic deadlines, employees may cut corners or “fiddle” their hours.

The Cost of Time Theft

According to the American Payroll Association (APA), 75% of businesses in the United States experience time theft every year. Moreover, this has resulted in productivity losses of $400 billion per year.

Additionally, according to Robert Half International, employers lose an average of 4.5 hours of productivity per employee per week.

Suffice it to say, this is a significant chunk of change that would be better invested in growth initiatives, employee benefits, or just keeping your business competitive.

Beyond the Financial Loss

Time theft doesn’t just cost you money. In addition, it can lead to the following:

• Reduce productivity. Having disengaged employees impacts overall team output during work hours.
• Lower morale. When coworkers commit time theft, they can feel discouraged and resentful, deteriorating morale.
• Damage company culture. Allowing time theft creates a dishonest and trust-damaging environment.
• Create unfair workloads. If a coworker steals your time, resentment and burnout can occur due to the increased workload.

Identifying Time Theft. Signs and Symptoms

How do you know if your company is suffering from time theft? You should be on the lookout for these red flags.

• There is a decrease in productivity. Is it common for deadlines to be missed consistently? Does it take longer than expected to complete projects?
• Excessive lateness or early departures. Is it routine for employees to arrive late or leave early, even if it is only by a few minutes?
• Frequent internet misuse. During working hours, do employees spend significant time on social media, online games, or personal browsing?
• Long breaks or extended lunch hours. Do employees take breaks much longer than they are supposed to?
• Difficulty reaching employees during work hours. Can employees be reached by email or phone for extended periods during the workday?

Understanding the Root Causes

Despite the clear-cut nature of time theft, there are often underlying factors that contribute to it, such as the following:

• Low morale and disengagement. The more unsatisfied an employee is with his or her work, the less likely he or she is to be productive. And, what’s more, the more likely they are to waste time.
• Poor communication and unclear expectations. Confusion and wasted time can result when employees don’t understand their roles, responsibilities, or expectations.
• Micromanagement. When employees are constantly watched, they become demotivated and rebel. This results in taking unauthorized breaks or engaging in passive-aggressive behaviors.
• Lack of trust. Dishonesty and resentment grow in a culture of suspicion. In response to constant monitoring, employees may steal time to demonstrate their defiance.
• Inefficient workflows and tools. Using outdated technology or poorly designed workflows can frustrate employees and lead to decreased productivity, resulting in time spent on manual tasks that could be automated.

Combating the Thief: A Multi-Pronged Approach

Now that the problem has been identified let’s design a solution. Here are some effective strategies for addressing time theft and fostering a more productive work environment.

1. Promote open communication and trust.

It is more likely that employees who feel valued and trusted will be responsible for their time. As such, open communication should be encouraged, so that employees can voice concerns and suggestions freely.

Also, to identify areas for improvement, regularly ask for feedback on workflows, workload, and tools.

2. Be clear about your expectations and goals.

Roles, responsibilities, and performance expectations must be clearly defined to avoid ambiguity. The easiest way to achieve this is to use SMART goals. These goals will create a roadmap for success and hold employees accountable for achieving them.

3. Encourage employee ownership and empowerment.

Empower your employees by giving them a sense of ownership. For instance, involve them in decision-making processes and encourage them to take initiative. This will motivate them to manage their time effectively and develop a sense of responsibility.

4. Prioritize breaks and encourage well-being.

By encouraging healthy breaks, you can reduce presenteeism. Make it a point to encourage employees to take short walks, engage in mindfulness exercises, or socialize with coworkers. After all, having a well-rested and rejuvenated workforce increases productivity.

5. Embrace flexible work schedules.

When possible, consider offering flexible work schedules or remote working options. This may allow employees to be more in control of their time and reduce time theft.

6. Invest in efficient tools and workflows.

A poorly designed workflow or outdated technology can significantly hinder productivity. As such, take advantage of tools that automate repetitive tasks, streamline collaboration, and improve information access.

7. Leverage time management training.

By teaching employees basic time management skills, they can prioritize tasks, plan their time efficiently, and avoid procrastination.

For example, using techniques such as the Pomodoro Technique, in which work is broken down into intervals with short breaks, can boost employee focus and productivity.

Additionally, time-tracking apps and to-do lists can hold employees accountable. Again, setting clear goals and deadlines is the best way to ensure work gets done on time.

8. Implement time-tracking tools strategically.

Time-tracking software can make monitoring productivity easier. However, it should be used transparently and clearly communicated with its purpose.

In other words, don’t use data for punitive purposes but to identify areas for improvement. Also, encourage employees to track their own working hours by using tools like timeboxing.

9. Focus on results.

Rather than focusing on the hours worked, consider the completed tasks and the project results.

10. Lead by example.

A company’s management plays an important role in setting the tone. As such, when you are in meetings, do not check your personal email or take excessively long breaks.

Addressing Potential Time Theft

In the event you suspect an employee of time theft, it’s important to address the matter directly.

• Schedule a private conversation. You can schedule a private meeting with the employee to discuss your concerns without accusing him or her.
• Focus on facts. Don’t make assumptions about your observations. Whenever possible, share timekeeping data from software or logs.
• Listen to the employee’s perspective. Allow the employee to explain their situation. Underlying issues, like workload or personal issues, may influence their behavior.
• Develop an action plan. Create an action plan for addressing the issue and preventing recurrence with the employee. Sometimes, this may require additional training, a modified work schedule, or a clearer goal-setting process.
• Document the conversation. Be sure to document the conversation, including the action plan. As a result, you have a record for future reference.

Conclusion

Creating an environment where employees feel valued is more important than punishing them. Instead, create a work environment where everyone understands the importance of time management.

Ultimately, though, the best way to reduce time theft and ensure your employees are working efficiently is to focus on communication, trust, and creating a productive culture.

FAQs

What is time theft, and how does it hurt my business?

Time theft is paying employees for time they did not work. For example, clocking in early or late, taking extended breaks, or using work time for personal errands or social media.

It may be hard to detect if you don’t constantly monitor it. The lost productivity and payroll costs can be significant for your business.

How can I identify time theft?

There are a few red flags to look out for, such as employees who..

• Regularly clock in early/late or leave early.
• Take excessively long breaks.
• Often aren’t reachable during working hours.
• Low productivity is a consistent problem.

What are some ways to prevent time theft?

• A clear time and attendance policy. Implement written policies for clocking in and out, taking breaks, and using the internet. Employees should be made aware of these clearly.
• Make use of time-tracking tools. You may want to consider timekeeping software or digital timesheets to track work hours.
• Open communication. Create an open and trusting culture. There should be no barrier between employees and managers when it comes to discussing workload and scheduling issues.
• Set realistic work expectations. To prevent burnout and time theft, ensure manageable workloads and realistic deadlines.

How should I handle a suspected case of time theft?

• Gather evidence. Make sure you document time theft incidents with specific dates and details.
• Confrontation. Privately discuss the issue with the employee.
• Disciplinary action. Follow your company’s disciplinary procedures depending on the offense’s severity.

Are there legal implications for time theft?

U.S. federal law does not make employee time theft illegal. As a result, time theft is typically classified as misconduct rather than a crime. It is possible, however, for an employee to suffer severe consequences for committing time theft.

Suppose the employee falsified their records or engaged in other fraud to orchestrate the time theft .If that happens, they could be charged with a crime.

Image Credit: Antoni Shkraba; Pexels