Address timesheet cheaters carefully
Johnny C. Taylor Jr., a human-resources expert, is tackling your questions as part of a series for USA TODAY. Taylor is president and CEO of the Society for Human Resource Management, the world’s largest HR professional society.
The questions are submitted by readers, and Taylor’s answers below have been edited for length and clarity.
Question: I have an employee whom I suspect of recording more hours on a timesheet than they actually work. Although we have flexible work hours, we have strict rules for timekeeping, as we directly bill our customers the hours we work. How should I approach the problem? What amount of proof do I need to bring it forward? – Anonymous
Johnny C. Taylor Jr.: In most cases, I believe in directly addressing workplace problems as they arise. But in this case, I encourage you to tread carefully. Your HR department can be an important resource as you do so.
Years ago, companies typically had all employees – salaried and hourly – complete timesheets. In today’s workplace, accurate time records must be retained for nonexempt employees, whether they are salaried or hourly, but the practice of having salaried, exempt employees fill out timesheets is not so common.
However, there are still exceptions (law firms and accounting firms, for example), and it sounds as though your company may fall into that category.
When a company has clients that are billed directly for hours worked, it is responsible for ensuring the hours are accurate. If they are not, two ethical issues come into play: employee misrepresentation of hours and overbilling a client.
Additionally, many employers have reporting policies that require even exempt employees to keep an accurate timesheet of hours and hold managers accountable, too.
That’s why it’s important for managers to make sure their employees understand how the timekeeping process works.
If an employee is fabricating hours on a timesheet, he or she may be both committing theft and violating company policy, in which case there would be severe consequences. And, as the person’s supervisor who signs off on the timecard, you could be disciplined if the information is incorrect.
Here is how I would generally approach the situation, if this is the case:
❚ Seek the assistance of HR: Be very thoughtful about what you say and with whom you share your suspicions. There might be an innocent explanation, and thoughtless words could rise to a defamation claim. Go to your HR department for guidance regarding your concerns.
❚ Do not accuse just yet: Your organization should gather enough information and hear what the employee has to say before alleging a serious policy violation.
❚ Have a conversation: Whether it is initiated by you or HR, a thoughtful, private conversation with the employee can reinforce the timecard policy and address concerns. It’s essential to get the person’s explanation for why a discrepancy is happening.
❚ Proceed with proof: If there is sufficient proof and no reasonable explanation from the employee, HR will determine how to respond.