Can timesheet fraud be prevented in contract cleaning?
Timesheet fraud occurs when employees log incorrect information on their timesheets. This can be deliberate or unintentional, and even when authorised by a manager without being challenged, it becomes a costly problem, because the time and attendance system doesn’t allow for accurate checking before the payroll is run.
Most cleaning contractors will be involved with all stages of the employee lifecycle: recruitment, onboarding, development, payroll, retention, and exit. Multiply this by the number of employees you have, and the day-to-day people management process becomes a complex task.
By integrating automated time and attendance systems, analysing data and embracing cloud-based information intelligence - the entire process becomes much more accurate. There’s no room for timesheet errors or fraud when you’ve made the decision to move away from stacks of paper and an overflowing inbox!
What is timesheet fraud?
Incorrectly logging hours worked. This is when an employee can artificially increase the number of hours worked on their timesheet or by clocking in early or out late.
Editing timesheets retrospectively. This is also considered timesheet fraud and can only usually happen if the employer is using manual time and attendance methods.
Buddy punching. In locations where traditional clocking in and out systems are used, it is possible for employees to ‘punch in’ for their colleagues when they’re running late.
Logging standard hourly rate as higher overtime rate. When overtime is included in the payroll calculation and the hourly rate is higher than standard working hours, then it can be possible for employees to declare hours against the wrong hourly rate.
How can cleaning and FM companies reduce timesheet inaccuracies and fraud?
It’s easy for employees with paper-based timesheets to enter incorrect times of arriving and leaving site or to round up their hours. Overpayment will often happen as the employee is paid based on those incorrect hours or rates. Couple that with huge volumes of attendance data that needs retyping from timesheets or cards into the payroll system by back-office administration staff, it’s easy for mistakes to be made and inaccuracies to go unnoticed.
Richard Onions, Ezitracker Customer Success Manager comments:
“By eliminating uncertainty and having information available in real time, it’s possible to free up time for managers to make the best possible decisions, streamline processes, achieve optimum levels of productivity, and boost long-term profitability.
Time and attendance software solutions provide operations managers with the technology to verify attendance in real time and eliminate the need for paper timesheets - thereby streamlining payroll reporting. A massive reduction in the administrative burden of paper timesheets can result in substantial savings in payroll processing including the elimination of timesheet fraud, reduction in payroll overpayments, discrepancies, disputes, and time spent on supervision.”
The technology significantly reduces the potential for fraud and time-keeping disputes as it enables payroll managers to compare actual hours worked against planned hours, therefore significantly reducing the chance of over-payments.
