"Gaming the Clock" Survey Finds That Many Employees Admit to Cheating on Timesheets.

CHELMSFORD, Mass. -- A new survey commissioned by The Workforce Institute[TM] at Kronos([R]) Incorporated and conducted by Harris Interactive reveals that 21 percent of hourly workers have cheated on their timesheet to gain extra pay from their employer. The "Gaming the Clock" survey indicates that employers who use outdated workforce management methods are at risk of significant payroll inflation.

News Facts

* 21 percent of respondents who are compensated with an hourly wage admit to "gaming the clock" (cheating on their timesheets)

* Of the total number of respondents who state that they game the clock, 69 percent admit to punching in earlier or punching out later than scheduled

* 22 percent admit to adding additional time to their timesheet

* 14 percent say that they don't punch out for unpaid lunches or breaks

* Five percent admit to having someone punch them in or out ("buddy punching")

* 35 percent of respondents who receive an hourly wage stated that their employers use paper timesheets to keep track of employee time worked

* According to a Nucleus Research report, organizations with manual time and attendance systems typically incur unnecessary payroll costs upwards of 1.2 percent of their total payroll costs due to inaccurate application of pay rules, as well as human errors. For example, an organization that has annual payroll costs of $50 million could save more than $600,000 per year if they automated the collection of employee time.1

* Along with providing immediate cost savings by reducing time-consuming processes and costly payroll errors, an automated workforce management system can also empower organizations with the information they need to uncover significant labor cost savings. A recent Diagnostic Assessment analysis by Kronos of more than 19 months of timekeeping history for a manufacturer with approximately 6,800 employees uncovered more than $20 million in cost savings overall including $3.6 million in gaming the clock-type abuse.

* When researching the purchase of a workforce management solution, organizations should ask vendors about the potentially hidden costs of customization; whether the time and labor data is provided in real-time or in batch fashion; and how intuitive and easy to use the product is.

Supporting Quotes

* Joyce Maroney, director of The Workforce Institute, Kronos "If 21 percent of workers admit to gaming the clock, the actual percentage of workers engaging in this type of behavior is likely much higher. Employers are not only losing money by paying for time not worked, but may also be increasing their risk of non-compliance with federal labor legislation such as FLSA, FMLA, and state regulations such as California meal and break laws."

* Joyce Maroney, director of The Workforce Institute, Kronos "A workforce management system, properly installed and managed, can lead to greater employee satisfaction and engagement. No one likes to be paid incorrectly and an organization thrives when employees can be assured that everyone is being compensated fairly."

* Jim Kizielewicz, senior vice president and chief marketing officer, Kronos "Not all workforce management solutions are created equal. Organizations that choose an ERP system to manage time and labor may find that payroll inflation remains a problem because these solutions are expensive to customize and only automate a portion of a company's pay policies. Lack of real-time processing and an awkward user interface also limits the ability to quickly identify problem areas."

Supporting Resources

* About Harris Interactive

Survey Methodology

This "Gaming the Clock" survey was conducted online within the U.S. by Harris Interactive([R]) via its QuickQuery(SM) online omnibus service on behalf of The Workforce Institute at Kronos Incorporated between January 30 and February 3, 2009 among a nationwide sample of 2,241 U.S. adults aged 18 and over among whom 1,265 were employed full-time or part-time. 681 of those were compensated with an hourly wage. Data were weighted using propensity score weighting to be representative of the total U.S. adult population on the basis of region, age within gender, education, household income, race/ethnicity, and propensity to be online.

About The Workforce Institute

The Workforce Institute was founded by Kronos Incorporated in 2006 as a think tank to provide research and education on critical workplace issues facing organizations around the globe. By bringing together thought leaders, The Workforce Institute is uniquely positioned to empower organizations with the knowledge and information they need to manage their workforce effectively and provide a voice for employees on important workplace issues. A hallmark of The Workforce Institute's research is balancing the needs and desires of diverse employee populations with the needs of organizations. For additional information, visit www.workforceinstitute.org.

About Kronos Incorporated

Kronos is the global leader in workforce management solutions that enable organizations to control labor costs, minimize compliance risk, and improve workforce productivity. Tens of thousands of organizations in 60 countries -- including more than half of the Fortune 1000[R] -- use Kronos time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications. To learn how Kronos uniquely delivers complete automation and high-quality information in an easy-to-use solution, visit www.kronos.com.

[c] 2009 Kronos Incorporated. Kronos is a registered trademark and The Workforce Institute is a trademark of Kronos Incorporated or a related company. All other trademarks are property of their respective owners.

Footnote 1. "G45 - ROI Evaluation Report - Kronos Workforce Timekeeper," Nucleus Research, 2006.