False overtime is now over

M&M * (name changed to protect the customer's privacy) has been in business for over 60 years. Its headquarters and branches are spread across the United States, with over 650 employees. The company offers life, hospital, dental, accident, and short-term disability insurance. The most important goal of HQ's financial department was to reduce overtime costs, so they decided to implement WorkTime employee monitoring software.

Background/challenges

M&M's management noticed that the employees' overtime claims were becoming exaggerated. In the event of a car accident, insurance agents are required to link the accident's location to overtime (at any time of day), which appears reasonable. However, excessive overtime may appear to be a fraudulent claim for dental and short-term disability insurance services. Employees at M&M were suspected of collecting false overtime cheques, and WorkTime seemed like the best solution to save the company's finances.

Decision process

The management team devised a solution to use an automated staff monitoring scheme. After comparing the licensing conditions of most employee monitoring software on the market, one of the managers contacted NesterSoft Inc. to learn more about WorkTime Corporate products. Management found the WorkTime staff monitoring software reports to be comprehensive and relevant to the main goal of the M&M financial department.

Implementation

M&M purchased licenses for two servers to monitor the staff of two departments, a total of approximately 250 people. The number of WorkTime licenses requested equals the number of Terminal / Citrix servers (if chosen by the server license type). It took a month to monitor the employees under investigation and another two weeks to analyze the data gathered. The outcome of the software implementation exceeded all possible expectations! According to the reports, among the employees claiming overtime:

• 70% of computers were used for non-business purposes during paid hours (social networks and non-insurance-relevant websites).
• 15% were Idle after logging in (possible distractions, e.g., coffee breaks and socializing with colleagues).
• 5% made overtime claims for the time they did not work.
• 10% of the overtime claims were reasonable and justified.

Results/solution in action

Before the implementation of employee monitoring software, approximately 160 out of 250 employees claimed overtime monthly. The in-depth analysis advocated a valid right to receive overtime payments ONLY for 30 employees based on the monitoring software reports (those not included in the Idle Time reports or identified as heavy users of social networks). As a result, M&M employees saved around USD 4,000 per month that was previously spent on bogus overtime!

"With the implementation of employee monitoring software, management now has control over the overtime situation.” Using the WorkTime Corporate solution, we were able to save up to USD 50,000 in the previous financial year... The company's top management decided to put the money into a charity fund to help people with short-term disabilities who do not have prepaid insurance.” – According to the CEO of M&M, the insurance company that generously provided the WorkTime team with material for this case study.

About WorkTime

NesterSoft Inc.'s WorkTime Corporate (www.worktime.com) service is an automated technology tool that enables managers to manage overtime claims better and increase corporate productivity.

About NesterSoft Inc.

NesterSoft Inc., a WorkTime employee and computer monitoring software provider, has specialized in non-invasive and respectful productivity monitoring software for reputable companies worldwide since 1998.