It Takes a Few Seconds to Lose Billions – the Numbers Tell the Story

Labor tracking is a good way to assess employee time theftThe problem of employee time theft and how to rectify it is starting to gain traction with employers across the world.  As we pointed out in a recent White paper about eliminating time theft and increasing profits with PC-based biometrics, employee theft directly causes 1/3 of all corporate bankruptcies in the U.S. and of the many ways that employees bilk their employers, time theft is often considered one of the most preventable.  In a fiercely competitive global economy where employee efficiency and productivity are often key catalysts in the success or failure of a business, this is a particularly important subject to understand and address.

At its core, time theft doesn’t appear to be an overly egregious violation.  An employee shows up a few minutes late for work, takes 2 extra minutes for lunch or on a scheduled break each day and no one notices or really cares.  After all, what’s a couple of minutes of lost time going to mean in the grand scheme of things, especially if they work for a company that realizes billions of dollars per year in revenue?  Breaking down the numbers can provide a closer look at how much a few seconds or a few minutes can add up over the long term, as reported in our White paper:

“Employees taking lunch breaks just 15 minutes past their allotted time can equate to about an extra day of vacation per month, every month.”

“If every employee in a 100 employee organization took a 15 minute extended lunch each day, that would equal 1,200 free vacation days per year.”

Plugging holes in internal infrastructure can also help stop profits from bleeding due to employee time losses.  If an organization uses manual login procedures, entering a personal identification number (PIN) can take a few minutes each day if you add up clocking in/out with lunch and regularly scheduled breaks.  We estimated that for a company with 150 employees, this can translate into 18.5 days lost each month due to manual login procedures.

Cal Poly Pomona University recently switched over to using a PC-based biometric time and attendance interface and estimated that it saved their employees at least 2-3 minutes per day and boosted productivity significantly.

If you have not had the opportunity to review our White paper, it’s an easy read and will leave you smarter about the topic of strategies to eliminate time theft and boost employee productivity and accountability. The numbers tell the story.

What other strategies have you used to help lower time lost for your employees that have been successful?