False Overtimes Are Over Now
M&M*(the name changed in respect to the customer’s privacy) insurance company has been in business for over 60 years now. Based in the US, it employs over 650 people both in their headquarters’ state and the neighboring ones. The company provides service in life, hospital, dental, accident, and short-term disability insurances.
The latest objective of the HQ financial department was to cut costs spent on overtime hours.
M&M managerial staff noticed the employees claim for too many overtime hours. In the case of car accident cases, when insurance agents have to detect the accident location at any time of the day it happens, the overtimes sound reasonable. However, for the departments which deal with dental and short-term disability insurances, – excessive overtimes might appear a fraudulent claim. The M&M employees were suspected of collecting bogus overtime, and the solution to the issue seemed necessary to save the corporate finances.
The managerial staff came up with the solution to use an automatized employees’ monitoring scheme. Having compared the licensing conditions of employee monitoring software on the market, one of the managers got in touch with NesterSoft Inc. to find out more about WorkTime Corporate product. The management found the reports provided by WorkTime employee monitoring software comprehensive and relevant to M&M financial department’s goal.
To monitor the employees of two departments, approximately 250 people, M&M purchased licenses for two servers, as WorkTime licenses amount is equal to the amount of
Terminal/Citrix servers applied (if choosing per server license type). It took a month to monitor the employees under investigation, and another two weeks to analyze the data received.
The software implementation outcome exceeded all possible expectations!
The reports showed that among the employees claiming for overtimes:
• 70% used computers for non-business purposes during the daytime (social nets and websites surfing non-relevant to insurance);
• 15% got into the Idle time reports after they logged in (possible non-computerized distractions, e.g. coffee breaks and socializing with colleagues);
• 5% claimed overtime payments for hours they did not work at all;
• 10% were reasonably claiming the overtime pay.
Results/Solution in Action
Before the employee monitoring software implementation, approximately 160 out of 250 employees claimed for the overtimes on a monthly basis. The profound analysis, based on the monitoring software reports application, advocated the unequivocal right to receive overtime payments ONLY for 30 employees (the ones who did not get into the Idle time reports, nor were they detected as heavy social nets users). Correspondingly, M&M staff saved around USD 4,000 per month, earlier spent on a pseudo need for the overtime!
“The implementation of employee monitoring software enhanced our management control of overtime costs. WorkTime Corporate application assisted us to save up to USD 50,000 the last financial year… It was the top managerial decision to invest the money [saved due to monitoring software use] into the charity fund, aimed to help short-term disabled people without prepaid insurances.” – Reported the CEO of M&M, the insurance company that kindly provided the WorkTime team with the material for this case study.
WorkTime Corporate (www.worktime.com), a software product developed by NesterSoft Inc., is an automated technology tool that empowers managers to optimize overtime claims expenditures and enhance corporate productivity.