How to Prevent Employees From Timesheet Fraud
Posted by Marina on April 5th, 2018
No matter what industry you’re in, you can come across timesheet fraud. Apart from the obvious financial losses, it negatively impacts nearly all aspects of the workplace: from project management and resource planning to the work environment.
Timesheet fraud results in wrong billable and payable amounts, inaccurate estimates for future workloads, as well as weak discipline and employees’ morale.
For example, a recent fraud case in Port Elizabeth, New Jersey involved more than one person. The main accused illegally acquired an amount worth of 0,000 annually, while showing up at work just 8 hours per week. To make this happen, his coworkers submitted false timesheets for him.
More than anything else, this behavior was undermining teamwork, trust, and cooperation.
As hard as it is, this problem can and should be handled. In this article, we’ll look into the most common timesheet fraud schemes and ways to prevent them.
Timesheet fraud types
So what exactly is time fraud?
It takes place when an employee gets paid for work they never did or for time spent on activities not related to work. Time fraud schemes mostly depend on the method employees used to track their time, absences, and overtime.
These are the most common fraud types:
One big question is, can goofing off during the workday be considered as a time fraud too?
It largely depends on the employee’s area of activity and responsibilities. In customer service, it is usually not okay for an employee to play with their smartphone even when no customer is directly addressing them.
However, in many cases the employer pays their employees for being ready and willing to work. So even if they’re doing nothing for a while and the employer doesn’t want them to go home, it shouldn’t qualify as time theft.
Preventing timesheet fraud
While there is no surefire remedy against employee fraud, employers can take certain steps to reduce and prevent false salary claims.
Here’s what you can do:
Things you should carefully consider
The key rule here is “Don’t overdo it”.
Employee fraud, even if only alleged, is a sensitive issue.
Before taking any decisive steps, always consider the implications. Too great eagerness to eradicate the fraud can consume all resources, damage work environment, or undermine employee loyalty. So…
There’s no doubt that timesheet fraud is harmful for the company’s work process and climate.
At the same time, make sure not to cross the line when preventing it or handling its consequences.
There are ways to minimize the problem without micromanaging or threatening healthy work environment. One of the most efficient ways to prevent fraud issues is implementing an electronic timesheet system that physically prevents any inappropriate time-track modifications.
And no matter which technology you apply, building trust in your team lies at the core of a healthy workplace.
About the AuthorMarina
Joined: April 5th, 2018
Articles Posted: 2
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