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Buddy Punching Inflates Labor Prices however You Can Banish It at Your Enterprise

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Buddy Punching Inflates Labor Prices however You Can Banish It at Your Enterprise

There are a number of methods staff inflate their paychecks and buddy punching is without doubt one of the most costly. With a buddy punching scheme, an worker clocks in for a “buddy” that’s not at work. The worker might or might not arrive throughout the shift however will receives a commission for the total shift no matter precise time labored.

The same state of affairs is when the “buddy” leaves early with out punching out and the co-worker punches out for them on the finish of the shift. The dishonest worker not solely avoids a diminished paycheck, they escape any repercussions for time and attendance violations.

U.S. employers lose over $370 million a yr to buddy clocking fraud. Flagrant abusers can value their employers hundreds of {dollars} yearly.

Automated timekeeping techniques forestall each buddy clocking and timecard fraud, one other type of time theft. With timecard fraud, a dishonest worker falsifies punch occasions on paper timesheets to inflate hours labored. As a result of automated timekeeping platforms create digital timecards and replace them in actual time, staff can’t alter them with out supervisor approval.

Let’s Do the Math for Two Sorts of Hours Theft


How a lot does worker time theft value you? Let’s do the mathematics for 2 frequent eventualities – buddy punching and hours padding.

The primary instance includes buddy punching. Two $18/hour staff every miss one 8-hour shift monthly however are paid for it as a result of their buddy clocks in for them. You’d overpay $288 monthly and $3456 yearly. Keep in mind, it is a conservative two shifts monthly. At many small companies, buddy punching occurs extra often.

In our second instance, suppose you employ paper timesheets. In your workforce, 20 staff add what they think about to be a negligible 10 minutes every day. They might document the common shift begin time although they arrive 10 minutes late, or go away early however document the precise shift finish time on the timecard.

In the event that they common $15/hour, you’ll find yourself overpaying the next:

  • $250 every week
  • $1000 every month
  • $12,000 annually!


Any small enterprise proprietor may consider 100 higher issues to do with 12K annually. Improve advertising and marketing. Improve tools. Rent one other worker. Enhance worker incentives!

Case Examine: Restaurant Solves Worker Time Theft


A Los Angeles-based 30-employee restaurant added an automatic timekeeping system and biometric time clock. They didn’t know that earlier than automation, just a few staff engaged in buddy punching and early clocking. The facial recognition clock made buddy punching not possible. Early punch lockout prevented staff from padding their hours by clocking in early.

The consequence? Whole payroll prices fell by 4% with no affect on the visitor expertise.

When you have a small enterprise, you’re shedding cash to time theft. Automated timekeeping is the answer.  Interested by automated time and labor that can assist you lower your expenses? Name us at present.  To be taught precisely how a lot it can save you with automated time and labor, attempt our Time and Attendance ROI Calculator.

This info is supplied with the understanding that Payroll Companions is just not rendering authorized, human assets, or different skilled recommendation or service. Skilled recommendation on particular points must be sought from a lawyer, HR advisor or different skilled.

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