A lot of business owners in the UK seem to be unaware of the extent, as well as the cost, of time theft at the workplace. A small business can lose up to £2000 every year for a single employee if it does not use a biometric time attendance system. You can prevent this from happening by implementing time clocks UK combined with timekeeping software.
Economic slowdown and drop in manufacturing throughout the world, and especially in the UK, is hurting local business quite badly. As the cost of doing business goes up, employers are forced to find ways to cut costs in order to stay competitive. Labour is one product cost component that the business owners can have a control on. However, first you have to be aware of the size of time theft at your workplace and how much it costs your business. Once you realise the extent of wage fraud, you would definitely be looking for solutions like the biometric time attendance system.
Calculating the Costs of Time Theft
Let us try to evaluate the problem faced by a lot of small businesses in UK by going through an example. Suppose an employee steals 5 minutes for every work day. That would translate into 25 minutes per week or 2.7 days per year if you assume a work day of 8 hours. If the particular employee is being paid an average hourly rate of £8, you would be paying an extra £200 per year if you include the costs of employee benefits and payroll taxes. At this stage the figure may not appear to be very alarming to you and you might be thinking, “That’s not so bad, I don’t need to invest in timekeeping software.” Wait, there is more and it gets quite worse.
In the first calculation, we used the least amount of time into our equation which is, quite frankly, wishful thinking. Now let us use more realistic figures and see the exact damage done to your business. Suppose the actual amount of time stolen from you is an hour a day, what would be the cost then? If that were the case, a single employee would be stealing about 32.5 days every year and the cost would be a staggering £2000 each year at least for a single employee. I bet the automated time clocks UK are looking quite a good option now. Even if this hour a day is spread over a few employees it is still a true and real cost. The more employees you have the more effect this will have on your business.
What Are Your Options?
Your approach towards handling time theft should comprise of two steps. First, is to close any loophole that allows employees a free hand to do as they please when it comes to time and attendance. This can be achieved by replacing your manual time tracking with a biometric time attendance system. The second step should be to enforce a strict workforce regulation policy that has a zero tolerance for tardiness. Strictly prohibit making or attending personal calls, except in emergencies, and use of the internet, except for employees whose job description requires it.
Once your employees are aware of the fact that time theft is neither tolerated nor possible after the implementation of time clocks UK and that they can be held accountable now for their time at work, there would be a marked improvement in their productivity and workplace efficiency.
Combined with the timekeeping software, these time and attendance solutions can also provide you with an insight into time and attendance patterns, labour costs, and many more useful reports with just a click of your mouse.