5 Ways Employees Could Be Scamming Your Time and Attendance System

Time and attendance fraud is a costly and often hidden aspect of almost every business. Over the years we have seen and heard about many ways employees have been abusing the system to squeeze out extra time.  Image an employee that shows up 5 minutes late every day and leaves 4 minutes early.  Those 9 minutes add up to 40 hours over a 1 year period. That is an extra paid week for unworked time.  Here are 5 ways that employees could be scamming your time and attendance system;

1. Buddy Punching – if your company uses passwords, punch cards or the like for employee clock in/out then chances are you have some employees who clock in and or out for each other.

2. Inflated Hours – if you have a manager using a paper based (or excel) time and attendance solution chances are you have inflated hours in there.  If an employee walks in a few minutes late, in many cases the manager will mark the employee as on time. It is a hard place for a manager to be, while they want hard working employees, they also want to be seen as “friendly” so their tracking might not be as accurate as an automated system is.

3. Ghost Employees – not specifically a time and attendance problem, but larger companies, government organizations, etc can have ghost employees within their organization.  This can happen when an employee in the payroll department adds a family member, friend, etc to the payroll but that person does not actually work for the company.

4. Favouritism – when managers pick and choose who gets overtime or have the power to override attendance records there can be some leakage.

5. Inaccurate Data Entry – when an employee is tasked with coping over time and attendance data from time cards or time sheets simple human errors can find their way into attendance or worse, an unscrupulous employee could adjust the numbers on purpose.

These are just five examples of time and attendance fraud that goes on within companies. Have you heard of other examples?  

If you want to learn more about how PayrollHero eliminates these issues, reach out to us for a one on one call with one of our sales engineers.

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