Where Does the Time Go?

Reducing Payroll Losses from Time Reports with WFO

The expression “time theft” is one that is likely familiar to every business owner with employees, including contact centers. It refers to situations where employees are paid for time they did not actually work.

It’s the kind of phrase that makes managers angry because they feel as if employees are taking advantage, but it also makes employees angry because an accusation of stealing is never something to be taken lightly. 

But despite the discomfort it introduces into the workplace, time theft is an issue that must be confronted. While many contact center managers may not worry about an agent checking his or her Facebook page for a few minutes on company time, they will certainly not tolerate when one agent clocks in a fellow agent who never showed up at all. 

To be fair, that type of fraud is rare, but it does happen. It’s the more subtle forms of time theft – adding a few minutes to the beginning or end of a shift, counting a break time as work time, conducting personal activities while on the clock, that most impact productivity and business costs. 

It should also be acknowledged that many examples of time theft are inadvertent. Agents may honestly believe they worked the number of hours listed on their time sheets. Contact center work shifts can seem long and repetitive, and it is easier for mistakes to be made under these circumstances. But even without fraudulent intent, these situations can still be damaging. According to one estimate, time theft costs companies $400 billion annually in lost productivity. 

The Problem

According to studies by the American Payroll Association (APA), almost 75 percent of businesses in the U.S. are affected by time theft. These instances can take as much as 7 percent out of a company’s gross annual payroll. For a business with a $1 million payroll that adds up to $70,000 every year. 

When employees were asked if they have ever exaggerated the number of hours worked on a shift, 43% admitted to doing so at least once. It is worth repeating here, however, that these cases often happen without malicious intent. A contact center agent may stay a few extra minutes, or arrive ten minutes early, and not be aware they are doing something wrong when those minutes are recorded on a digital time sheet. 

The APA also reports that the average employee “steals” anywhere from 50 minutes to 4.5 hours per week by showing up late, leaving early and taking extended breaks and lunches. At the high end, this equates to approximately six weeks of stolen time per employee per year—as the study observes, whether the discrepancies are intentional or not, that is a staggering figure.

The Solution 

Contact centers have advanced a number of solutions to combat time theft, with varying results. Paper forms and traditional time clocks can help but are also vulnerable to agents who record their hours inaccurately or have someone else check them in. 

A biometric time clock, which uses an employee’s fingerprint to verify their identity before clocking them in, can be far more effective. It can also expensive to implement, and may strike some managers as overkill. 

A workforce optimization (WFO) solution may be the best option for making sure that there is no discrepancy between the hours declared and the hours truly worked. One of the primary benefits of WFO is increased productivity and service levels, and these are achieved in part by functionality that accurately records the number of hours worked. 

Monet Live, Workforce Optimization in the Cloud provides a means to optimize all aspects of the workforce, including scheduling and hours worked, in one solution. One way it achieves this by tracking agent adherence to planned schedules and determining agent work time accounts. In addition, Monet Screen Capture (included in WFO Live) provides full-motion video and audio capture, which shows what agents are doing at any given time during their shifts. 

Conclusion

The issue of time theft can be a difficult one to broach at a contact center. But if a business is losing too much money from agents inaccurately recording the hours they worked, it is an issue that must be discussed. 

Since managers cannot be there to monitor every agent before, during and after a shift, an automated solution is the best way to combat the loss of productivity caused by time theft. With recurrent coaching and training and a workforce optimization solution, a contact center can mitigate this problem.  

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