Observation Mountain

Employers Are Being Robbed – Unknowingly

The bottom line for employers is crucial. The more money a company makes, the more money the share holders make. When a company realizes a profit on a consistent basis, they often pass some of those profits on to employees, either in the form of pay raises, bonuses, or stock options. Let’s face it, a company is in business, to make money.

But….more and more employers, are being robbed, unknowingly.

They are being robbed in broad daylight.

They are being robbed by some of their employees.

How’s that, you say?

Let me ask you a few questions.

1) Can employees use the company computer to “surf the web’, for non related work items? Or play games?

2) Can employees make and/or receive personal telephone calls during working hours?

3) Do you have employees who consistently take a few extra minutes for their break or lunch (over and above what’s allowed)?

4) Do your employees run personal errands, or stop for lunch, when they’re driving a company vehicle, on company business?

5) Do your employees use a company issued cell phone to make personal phone calls?

6) Do your employees leave at an earlier time than what’s posted on their time card? Or come in later, than what’s posted?

7) Do your employees send and/or receive personal emails at work?

8.) Do your employees spend time gossiping ,or just talking to other employees, when they have work to do? (Now you have two, or more, unproductive employees)

If you answered yes to any of the above questions, your company is potentially losing thousands, if not millions of dollars. Your employees are stealing “time”.

Let’s crunch some numbers.

Let’s say you pay an employee $10.00 per hour. They get paid for an 8 hour day. You pay them $80.00 (before taxes).

Let’s say, an employee is gabbing, surfing, emailing, and/or taking care of personal business, for one hour a day (spread out in small sections of time). They just stole $10.00 worth of “time” from you.

Multiply that times the numbers of days they work in a month, (say 20) and they’ve stolen $200.00 worth of time. For a year, that calculates out to be $2600.00 (based on 260 work days a year). If a “time stealer” has worked for your company for 5 years, they’ve potentially “stolen” $13,000.00.

Let’s say your company has 100 “time stealers” (all making $10.00 per hour). Math tells me you’re potentially losing $1000 a day; $20,000+ a month, and $260,000 a year. That’s money that should be going to the bottom line. Over a five year period, a company that employs 100 “time stealers”, could potentially lose over a million dollars in “stolen time”.

Now keep in mind, the amount “stolen”, is actually higher. Anyone in business knows, that in addition to the hourly wage you’re paying, you’re also matching the Social Security amount (6.2%), the Medicare amount (1.45%), FUTA, SUTA, Unemployment Insurance (state and Federal), Workers Compensation Insurance, possibly medical insurance, and/or a 401, etc… I would venture to guess, all of these extras, would add at least 30%, to the gross hourly wage.

So…the next time you’re doing reviews, ask yourself, “Is this employee stealing (time) from me?” If they are, they’ve already given themselves a raise.

How’s that? Time to do a little more math.

Your employee makes $80.00 a day, but they have only worked for 7 hours (or less). Do the math…$80.00 divided by 7 equals $11.43.

Let’s take this one step further.

Let’s say you have 8 employees who are each “stealing” one hour a day. You’re losing 8 hours a day. Does that mean you’re over staffed, by one. Do you see my point?

I’m not saying employees shouldn’t be allowed any leeway at work. No one wants to work for a boss who monitors their every move, but there needs to be more control over what employees are allowed to do on company time. Your IT department can monitor computers (i.e. emails, internet searches, game playing), and possibly telephone logs. It may pay to hire a person (or two), and do an internal audit. The results may shock you.

How did this happen? Employers let it happen. If an employee knows they can “steal” from you, they may just do so. If one person can get away with it, others will follow. Until you, as an employer, puts a stop to it, you will continue to be “robbed”.

A good employee handbook can do wonders to address these “time stealing” issues. No handbook? Maybe it’s time you had one written. Start a new company policy…….and abide by it. No exceptions.

If you’re in a position of authority, or are an employee, and you’re reading this, you must ask yourself that burning question, “Am I stealing, too?”

And…..what about those dedicated employees, who keep their noses to the “grindstone”, and are doing more than their share of the work? Give them a big, fat raise! They’re “keepers”!

No tags for this post.

Posted in: Archives, At Work, Making Money, Saving Money