Technical Mitigation of Unconscious Time Theft among Hourly Employees: A Comprehensive Approach

Abstract

Time theft, especially among hourly employees, has a profound impact on corporate productivity and employee morale. This paper delves into the various factors that contribute to this unintentional behavior and proposes technological solutions. It highlights the psychological aspects that drive time theft and emphasizes the need for a comprehensive approach to address this issue. By exploring the underlying causes and implementing a multifaceted strategy to mitigate time theft, companies can effectively enhance productivity and boost employee morale.

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International Journal of Science and Research (IJSR)
ISSN: 2319-7064
SJIF (2022): 7.942
Volume 12 Issue 11, November 2023
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
Technical Mitigation of Unconscious Time Theft
among Hourly Employees: A Comprehensive
Approach
Karthikeyan Manikam
Email: emailmeatkarthik7[at]gmail.com
ORCID: 0009- 0008-9828-2478
Abstract: Time theft, especially among hourly employees, has a profound impact on corporate productivity and employee morale. This
paper delves into the various factors that contribute to this unintentional behavior and proposes technological solutions. It highlights the
psychological aspects that drive time theft and emphasizes the need for a comprehensive approach to address this issue. By exploring the
underlying causes and implementing a multifaceted strategy to mitigate time theft, companies can effectively enhance productivity and
boost employee morale.
Keywords: Time theft, employee productivity, workforce management, technical solutions, unconscious behavior, organizational
efficiency, attendance systems, accountability culture, time management training, automated monitoring, labor scheduling, operational costs,
employee morale, behavioral correction, workplace policies.
1. Introduction
In the dynamic and competitive landscape of modern
industries, organizational efficiency, productivity, and
employee morale are paramount to success. One subtle yet
pervasive issue that undermines these pillars is time theft,
especially prevalent among hourly employees. This
phenomenon, often overlooked or underestimated, represents
a significant leak in a company's resources, affecting not just
the balance sheets but also the work environment and team
dynamics.
Time theft occurs when employees, either intentionally or
inadvertently, use paid work time for non-work-related
activities. These transgressions range from seemingly
innocuous behaviors—such as consistently arriving a few
minutes late, extending lunch periods beyond the allotted
timeframe, or departing early—to more conspicuous actions
like taking unapproved time off or handling personal affairs
during work hours. While these instances might appear
trivial when viewed in isolation, their cumulative effect can
be profound. A mere 15 minutes lost per day—perhaps due
to tardiness, extended breaks, or early departures—translates
to over 60 hours of lost productivity per year, per employee.
When extrapolated across an entire workforce, the scale of
lost potential becomes staggering.
Furthermore, the advent of flexible scheduling adds another
layer of complexity to this issue. Employees, particularly
those on flexible schedules, may drop assigned hours without
sufficient notice, leading to labor coverage gaps that strain
resources and burden other team members. This behavior,
often not perceived as fraudulent by the employees
themselves, can erode the foundational trust necessary for
flexible scheduling to succeed.
The drivers of time theft are multifaceted, encompassing
individual shortcomings, such as poor time management
skills and a lack of awareness, and systemic issues, like
inadequate attendance monitoring systems and workplace
policies. The digital age, with its plethora of distractions,
exacerbates this challenge. Social media, online shopping,
and other digital platforms can divert employees' attention,
leading to fragmented work periods and diminished
productivity.
The consequences of time theft extend beyond direct
economic losses, estimated to be in the billions annually. It
also places an intangible strain on the workplace. Managers
diverted to address time theft are detracted from strategic
initiatives, while employees who adhere to rules may grow
resentful of their non-compliant colleagues, fostering a toxic
environment that can perpetuate the very problem it stems
from.
Addressing time theft, therefore, isn't just a matter of
tightening controls or enhancing surveillance. It requires a
nuanced understanding of the factors at play, an empathy
towards the human elements involved, and a strategic
implementation of technology as a facilitator for compliance
and engagement, not as a tool for enforcement. This paper
delves into these intricacies, seeking to unravel the
psychological and procedural undercurrents that feed into
time theft, and proposes a symbiotic approach where
technology and human insight converge to create a solution
that is both effective and respectful of individual autonomy.
By illuminating the paths leading to time theft and providing
a roadmap for its mitigation, we aim to equip organizations
with the knowledge and tools they need to safeguard their
most valuable asset: time.
2. Background
2.1 Definition of Time Theft
Time theft, in the context of employment, refers to the
unauthorized and intentional use of an organization's time
and resources by employees for personal activities. This can
result in decreased organizational productivity or unapproved
absences. It is important to note that not all instances of time
Paper ID: SR231119182828
DOI: https://dx.doi.org/10.21275/SR231119182828
1383

International Journal of Science and Research (IJSR)
ISSN: 2319-7064
SJIF (2022): 7.942
Volume 12 Issue 11, November 2023
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
theft are deliberate. Some employees may engage in these
activities unknowingly, without realizing that their actions
qualify as time theft.
Research demonstrates that time theft is not just a theoretical
concept. A recent survey revealed that 43 percent of
employees engage in time theft by falsifying their time cards,
45 percent record inaccurate times, 23 percent engage in
"buddy punching," and others use work time for personal
activities or take frequent breaks. Additionally, time theft
statistics indicate that one-quarter of employees inaccurately
report the amount of time they have worked between 76
percent and 100 percent of the time.
Another study done by Forbes found that that 16% of US
workers admitted to participating in buddy punching and
time clock fraud.
2.2 Implications of Time Theft
1) Extending lunch breaks, taking unapproved time off,
leaving work early, or arriving late without proper
approval from supervisors can all result in a loss of
productivity. Even missing just 5 minutes of each
designated punch opportunity can add up to a total of 15
minutes per day in lost productivity. For instance, being
5 minutes late, returning 5 minutes late from a break, or
leaving 5 minutes early could cost an employer 15
minutes of unproductive time per day. If an employee
consistently loses 15 minutes per day and the employer
pays $16 per hour, it would amount to 1 hour and 15
minutes per week. This would result in the employer
paying $20 per week and $1,000 per year for hours not
worked.
2) Flexible schedule employees dropping their scheduled
work hours at the last minute without prior notice to
their supervisors, which can create gaps in labor
scheduling and lead to another employee doing
overtime.
2.3 Understanding Time Theft
2.3.1 Psychological and Social Factors
Inadequate time management skills, social media
distractions, lack of effective, transparent, and automated
attendance monitoring systems, and employee unawareness
of its impact on overall labor management and productivity
are the primary reasons for time theft in the workplace. Poor
time management skills can cause employees to fall behind
on their tasks, prompting them to engage in time theft as a
way to catch up or meet deadlines.
2.3.2 Economic and Cultural Implications
In the 1990s, the US Department of Commerce estimated
that time theft cost American companies more than $177
billion every year. With the growth of social media and
online shopping, this number may be even higher now. Time
theft not only has economic costs, but also negative
implications for individuals in the workplace. For instance,
supervisors must spend time disciplining employees who
engage in time theft, as well as rescheduling other employees
to cover for temporarily absent employees.
The presence of time theft among some employees can
create a toxic work environment. Diligent employees may
feel demoralized by their colleagues' lack of commitment,
which can lead to decreased morale and encourage them to
engage in time theft as well.
2.4 Technical Solutions for Time Theft
2.4.1 Cultivating Accountability
Before implementing automated solutions to solve problems,
employers should cultivate a culture of accountability. This
includes establishing clear expectations regarding
punctuality, work hours, and time management. Employers
should encourage open communication and collaboration,
where employees feel comfortable reporting time theft or
addressing concerns about unfairness.
2.4.2 Time Management Training
Additionally, employers should provide training and
resources for time management. They should offer training
programs or workshops to enhance employees' time
management skills. Employers should provide employees
with tools and techniques to prioritize tasks, set realistic
deadlines, and manage their workload effectively.
2.5 Implementing Advanced Time Tracking algorithms
Utilizing modern time tracking systems that accurately
record employee work hours is an essential part of
controlling employee time off. However, it's important to
note that employers can provide unpaid time off as an
accrual to employees, which can be an effective way of
managing their time off. By offering Self-Managed Time Off
(SMTO) beyond their personal time off, vacation, and sick
leave, employers can empower their employees to take time
off without worrying about Time theft.
This Unpaid Self-Managed Time Off is a separate time-off
bucket that can be offered to employees with an initial X
amount of front-loading hours, and additional hours can be
earned based on the time worked in a day. This bucket can
be utilized by employees whenever they miss a shift,
providing them with a safety net for unexpected absences.
Moreover, employers can also offer a specific amount of
Unpaid Self-Managed Time Off (USMTO) upon an
employee's hire, and also additional time based on the hours
worked. For instance, employers can offer 10 hours of Self-
Managed Time Off (SMTO) upon an employee's hire, and
then 1 hour of time for every 40 hours worked. This policy
can be customized based on the employee's standard working
hours and the employer's policy.
To ensure compliance with this policy, an automated
attendance service can be implemented to detect Unpaid
Self-Managed Time Off (USMTO) automatically when an
employee misses a shift. The service examines the total
scheduled hours and total worked hours and projects the total
missed hours during the shift. Based on the number of
missed hours, it detects USMTO from the USMTO bucket.
The unpaid time off automated service also sends a
notification to employees through email when they approach
Paper ID: SR231119182828
DOI: https://dx.doi.org/10.21275/SR231119182828
1384

International Journal of Science and Research (IJSR)
ISSN: 2319-7064
SJIF (2022): 7.942
Volume 12 Issue 11, November 2023
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
0 hours of USMTO, and also to managers. This helps to
ensure that both employees and managers are aware of the
available USMTO and can plan accordingly. Moreover, if an
employee violates the policy, the manager can issue a verbal
warning, and the unpaid time off automated service sends a
notification. The action against these policy violations can
vary based on the employer policy and local laws.
In addition, the automated system can also detect USMTO
when an employee drops a shift in the system without prior
notice. For example, an employer can set the expected notice
period to 20 hours before the shift start time. If an employee
drops the shift 15 hours before the start time, the system will
detect 8 hours of unpaid time.
To promote transparency between the employer's policy and
the employees, the amount and reason for the detection
should be transparently displayed to the employee through
the employee self-service system.
Overall, this service promotes accountability among
employees, reduces time theft, and increases productivity. By
giving employees access to unpaid time off, employers can
create a more flexible work environment and foster a more
positive relationship with their employees.
Addressing the issue of time theft requires a multi-faceted
approach that combines understanding the psychological
factors behind it and implementing effective solutions. By
fostering a culture of accountability, providing necessary
resources for time management, and utilizing unpaid time off
tracking systems, employers can mitigate the negative
consequences of time theft and create a more productive and
engaged workforce.
3. Analysis of Proposed Solutions
3.1 Potential Challenges and Mitigation Strategies
Implementing these solutions is not without challenges.
Technical systems must be user-friendly to ensure employee
compliance. Furthermore, employers should be vigilant
concerning the misuse of unpaid time off, particularly during
high-demand seasons.
Employees are able to earn unpaid time off, which can be
used during the company's peak season. This is particularly
important for retail employees who are usually very busy
during Q3 and the beginning of Q1 due to holiday sessions.
However, it is important to consider the potential negative
impacts of employees utilizing this time off during the peak
season. For example, it may reduce the company's
productivity and lead to additional stress on other employees
who must pick up the slack. To mitigate these risks,
supervisors must find a suitable replacement for the
employee's work during this time. This can be a challenging
task, but it is essential to ensure that the company is able to
maintain its productivity levels and meet its business
objectives. Additionally, it may be worthwhile for
supervisors to consider offering incentives or rewards to
employees who are willing to work during the peak season in
order to encourage them to stay on and help support the
company's success.
Employees may not understand how they can utilize Unpaid
time off when punch-ins and punch-outs again if the
employer has already implemented grace periods for them.
One way to clarify this issue is to create a detailed guide that
explains the process step by step. The guide could include
information on how to apply unpaid time off if employee late
punch-in and early punch-out records, how to make
corrections to those records if necessary, and how to request
changes to the grace period policy.
Additionally, employers could offer training sessions or
workshops to help employees better understand the system
and how to use it effectively. This would not only benefit
employees but also the employer, as a more knowledgeable
workforce can lead to improved productivity and job
satisfaction.
Employees may not have a clear understanding of when to
use unpaid time off, paid time off, or vacation time off.
Communication between management and employees can
help clarify these policies and alleviate any confusion.
Management could also provide training sessions to educate
employees on the differences between the types of time off
and when to use them. Additionally, providing a
comprehensive employee handbook that clearly outlines the
company's policies on time off can be beneficial in ensuring
that all employees are aware of their options and know how
to use them appropriately. When there is a clear
understanding of when to use each type of time off,
Paper ID: SR231119182828
DOI: https://dx.doi.org/10.21275/SR231119182828
1385

International Journal of Science and Research (IJSR)
ISSN: 2319-7064
SJIF (2022): 7.942
Volume 12 Issue 11, November 2023
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
employees can feel more informed and empowered to take
the time off they need to rest and recharge. This, in turn, can
lead to a happier and more productive workforce.
4. Conclusion
Time theft, a subtle yet pervasive drain on organizational
resources, presents not only an operational challenge but also
a moral conundrum for modern enterprises. This paper has
illuminated the various facets of time theft, from its
psychological underpinnings to its economic repercussions,
and proposed a comprehensive strategy for its mitigation that
respects both organizational imperatives and employee
autonomy.
Our analysis underscores that time theft, often perpetrated
unconsciously, is not solely the product of individual
misdemeanors but can also stem from systemic inefficiencies
and a lack of adequate resources or training for employees.
The traditional punitive approach to time theft, while
necessary in certain cases, is insufficient to uproot its causes.
Instead, a more holistic strategy is required, one that
encompasses the establishment of a strong accountability
culture, investment in time management training, and the
integration of advanced time-tracking systems.
The introduction of USMTO is a revolutionary concept that
aligns with the values of autonomy and flexibility
increasingly sought in contemporary work environments.
This system not only helps regulate employee attendance but
also empowers employees to manage their time off more
responsibly, thereby fostering a sense of ownership and
accountability for their work schedules. However, the
success of this system hinges on transparent communication
between employers and employees, user-friendly technical
solutions, and clear guidelines on the utilization of different
types of time off. Education and continuous support are
crucial in this regard, ensuring that all staff members
understand and adhere to the policies set forth.
Moreover, addressing potential challenges such as the misuse
of USMTO during peak seasons and ensuring all employees
are well-versed in the system's operation are essential.
Proactive management and clear, open channels of
communication will be key in navigating these challenges.
Employers should also consider incentivizing adherence to
time regulations, particularly during high-demand periods, to
maintain operational efficiency and employee morale.
In conclusion, curbing time theft is not merely about
surveillance and enforcement but involves building an
organizational culture anchored in mutual respect, integrity,
and shared responsibility. It's about creating an environment
where employees are motivated to give their best, not
because they are watched, but because they understand the
value of their time and contributions to the organization's
collective success. This paper posits that a multifaceted
approach, which balances psychological understanding with
technical solutions, will be the most effective in combating
time theft, ultimately leading to a more engaged, productive,
and satisfied workforce.
As industries continue to evolve in the face of technological
advancements and changing work patterns, strategies to
mitigate time theft must also be adaptable, always
considering the human element at the core of every
organizational challenge and solution.
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Paper ID: SR231119182828
DOI: https://dx.doi.org/10.21275/SR231119182828
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