The holidays are a weird time of year for staffing agencies. Not only are they faced with temporary placement spikes in retail, hospitality, and logistics, but employees across other industries are taking time off by the thousands. In fact, 77% of the U.S. workforce plans to take a much-deserved break during the holiday season.
Unfortunately, this perfect storm also creates more opportunities for time theft, one of the most common and costly challenges in workforce management. Nearly half of American employees admit to time theft, resulting in businesses losing $11 billion per year in revenue.
To enjoy more holiday cheer instead of time theft fear, staffing firms must know how to spot and prevent time theft staffing risks.
Top 5 Holiday Time Theft Risks and How to Prevent Them
From buddy punching to inflated remote hours, employees will find sneaky ways to get paid for time they didn’t work while on the clock. Here are five time theft risks that can occur during the holidays, along with practical ways to prevent them.
1. Buddy Punching
Roughly 75% of employers lose money to buddy punching, with an average annual loss of $1,560 per employee. Buddy punching occurs when an employee clocks in or out for a coworker during their shift.
There might be an escalation of buddy punching holiday season issues, as employees want to spend more time with their loved ones.
Leverage geofencing or biometric verification to prevent unauthorized punches. Geofencing ensures employees can only clock in when they’re physically within an approved worksite. And biometrics verify an employee’s identity. This provides staffing agencies with concrete proof that workers are where they’re supposed to be when they’re supposed to be there.
2. Holiday Schedule Shift Confusion
With rotating shifts, new seasonal hires, and changing schedules, it’s easy for workers to get confused about where and when they’re supposed to clock in. This confusion can lead to honest mistakes that result in missed punches, duplicate entries, or even deliberate manipulation of hours.
Use time-tracking software that delivers real-time alerts. This way, you can stay on top of missed or late punches as they occur, and proactively inform employees.
3. Inflated Remote or Hybrid Hours
Hybrid and remote work are gaining traction. And while these models may be ideal for employees, they can also increase the risk of employees exaggerating hours. You may think they’re working when they’re actually out holiday shopping.
Staffing firms can reduce this risk by implementing geofence time tracking. These tools verify that employees are working when and where they claim to be.
Timerack’s time-management software, featuring geofencing capabilities, integrates directly with payroll systems, providing transparent and auditable records that better protect your agency.
4. Extended Breaks and Early Departures
While employees deserve their break time and breaks are required by law in some states, there is still room for abuse.
The holiday season is full of distractions, and workers might take longer lunches or leave early for family commitments, social events, or shopping trips. For staffing agencies that bill by the hour, even minor lapses can erode margins and harm client relationships.
Use automated timekeeping alerts that flag missed punches, early departures, or excessive break times in real-time. Supervisors can quickly review and approve timecards through a centralized dashboard, ensuring discrepancies are identified and corrected before they impact payroll or billing.
5. Misuse of PTO
During the holiday hubbub, employees may incorrectly use their paid time off or take it without proper approval.
To prevent PTO misuse, automate requests. This enables staffing firms to streamline their processes and closely monitor PTO balances.
Creating a Culture That Discourages Holiday Time Theft
Technology is your strongest ally, but your corporate culture plays an equally important role. The holidays are an opportunity to reinforce your agency’s values around honesty, accountability, and client trust.
Here’s how to build a culture that prevents time theft naturally:
- Acknowledge and reward employees who consistently follow procedures and set a positive example for others.
- Explain to temporary staff why accurate timekeeping benefits everyone, including fair pay for workers and precise billing for clients.
- Choose timekeeping tools that are easy to use from any device, reducing excuses for missed or late punches.
When employees understand that time tracking is about fairness, not micromanagement, compliance improves organically.
Prevent Time Theft this Holiday Season
Mitigating time theft should be a top priority for every staffing agency during the hectic holiday season. By understanding these common risks and leveraging tools like automated staffing agency timekeeping, you can safeguard your agency’s profits and ensure that every billed hour is accurately earned.
This season, let Timerack’s technology take the stress out of time management. Request your demo today to learn how.