Time theft is when an employee is paid for time they did not work either intentionally or by mistake and can include: time tracking errors, frequent breaks, exaggerated hours, and more. A survey by Software Advice reports that 43 per cent of employees exaggerate hours and the American Payroll Association estimates that the average employee steals 4 hours and 5 minutes each week. By reducing time theft according to the APA a company who pays out $1 million in annual payroll can save $70,000 in “stolen” time.
Here is how a time tracking app integrated with your payroll software can reduce time theft by accurately tracking actual time worked, instead of relying on the employee to recall and report their hours correctly themselves.
Start with cloud-based payroll software
While most businesses see the value of an accounting software to track their finances, they are missing the bigger picture when it comes to profit loss from mis-tracked time or employee theft. Accounting software companies often now have cloud-based payroll features built in to help businesses keep track of all their financial data in one place.
An article from Human Resources Today reported that businesses are moving toward cloud-based business solutions, because they reduce overhead costs, provide added conveniences and allow for flexibility in tracking and reporting. In addition, cloud-based services allow for better record-keeping, transparency in business, and secure data storage.
Software like Xero Payroll allows businesses the security and convenience of hosting historical payroll information that can be referenced when there is a discrepancy. These programs are often packed with features, like automated calculations, multiple pay rates, flexible pay calendars and detailed reports, but the time tracking functionality is generally basic and does not allow for robust reporting.
Add-on time tracking app
“Time tracking software is not just about tracking hours,” says Douglas Dweck, co-founder of eBillity. “It’s about finding a solution for serious business concerns and giving the user more control by providing them with measurable insights into their business they might not have had without it.”
As one of the first time tracking apps to integration and sync easily with Xero Payroll in the UK, Time Tracker by eBillity allows users to bill clients and pay employees for the actual time worked. Because of the focus on time tracking features, like multi-timers and free mobile apps, businesses get a more robust, reliable way to monitor time for payroll. Admins can quickly see all the company’s time entries on one dashboard to easily monitor for anomalies before approving for payment processing, while in-depth reporting features allow them to track employees’ time usage and watch for patterns over extended periods.
Try Time Tracker for free for 14-days and see how Time Tracker can substantially save your company in annual payroll costs by reducing time theft.