As an employer, it is essential that there are workplace policies implemented to address theft in the workplace. While many businesses have policies to dissuade employees from stealing physical items, there are other forms of fraud that can affect your bottom line.
An issue facing many companies is fraud, specifically time theft.
What are the common motivations of fraud?
Certified Practising Accountants (CPA) Australia states in its report, Employee fraud, that the crime is often motivated three key behaviours:
- Financial pressures at home or work stresses
- Opportunity often caused by a lack of alarm systems
- Justifying the act despite its illegality
Furthermore, CPA notes the adverse effects that fraud can have on an organisation as a whole. This includes negatively impacting staff morale, compromising the careers of those in management and even resulting in a firm becoming over-focused on the fraud.
The report notes that falsifying time sheets is a common form of worker theft.
What is time theft?
According to research by Software Advice, a subsidiary of Gartner, almost of half (43 per cent) of employees commit some form of time theft. These findings came out of Software Advice's recent survey, 43% of Employees Commit Time Theft: How Software Can Reduce Payroll Losses.
The survey explored the responses of this 43 per cent, in order to identify the extent of the problem. It revealed that 25 per cent of these employees alter the hours they have worked the majority (76 to 100 per cent) of the time.
According to the report, an effective security solution that reduces time fraud for employees can greatly reduce costs.
How to reduce time fraud
Employee theft such as time fraud occurs for a variety of reasons. Once the issue has been uncovered, it can be possible to address any financial or stress-related problems that have caused the worker theft.
However, in order to get to the root cause, the theft needs be to identified. One way to achieve this is through installing effective video alarm systems. Not only can they trigger a theft in progress, but they allow off-site monitoring.
Furthermore, if staff are aware there is a possibility they are being monitored, they will be less likely to commit fraud as there will be less opportunity to do so. For information on how to install security solutions in your workplace, contact the experts at NSR.