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How Online Time Tracking Software Helps Eliminate Buddy Punching

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How Online Time Tracking Software Helps Eliminate Buddy Punching

Jan 20, 2024











How Online Time Tracking Software Helps Eliminate Buddy Punching

For any business, their employees are their most valuable asset. But staff are only valuable if they're putting in the work. That's why accurately tracking employee hours is crucial. As an employer, it ensures you only pay for time worked. For staff, it guarantees payment for all hours on the job.

Whether a small business or large company, investing in the right online time tracking software can help eliminate buddy punching, a practice that is costing companies millions each year.

What is Buddy Punching and Why it's a Big Problem

Buddy punching happens when an employee clocks in or out for a co-worker. It may seem harmless on the surface, but it's actually a form of time theft. Employees who buddy punch get paid for time not worked.

For example, if John is running late for his 9am shift, he might ask his coworker Mary to clock him in at 9am, even though he doesn't arrive until 9:15am. Or if Sally wants to leave early without the boss noticing, she may ask Alex to clock her out at 5pm even though she actually left at 4:30pm.

While buddy punching may appear trivial or like a favor between coworkers, it adds up to huge losses for companies. According to estimates, buddy punching costs employers about $373 million per year in the United States alone.

Even small businesses can lose a lot of money by ignoring buddy punching practices among staff. Let's break down the math:

  • On average, U.S. employees steal 4.5 hours of wages per week through buddy punching and other time theft practices (American Payroll Association).
  • The current federal minimum wage in the U.S. is $7.25 per hour.
  • So if one employee steals just 4.5 hours in a single week through buddy punching, that costs a company $32.63 that week.
  • When extrapolated over a full year, that comes out to $1,566 per buddy punching employee.
  • For a small business with 10 employees who are buddy punching at that rate, the total annual loss is $15,660.

As you can see, even a small amount of buddy punching per employee starts to add up to major unnecessary expenses that can hurt a small business's bottom line.

Common Causes of Buddy Punching

So why do employees engage in buddy punching? There are a few common reasons:

  • They know they can get away with it due to lack of controls
  • An employee arrives late and asks a coworker to cover for them
  • An employee wants to leave early without the supervisor noticing
  • An employee wants to take an extended lunch break
  • An employee wants to miss an entire shift

Essentially, any manipulation of actual hours worked is a form of buddy punching. Employees may make excuses or justify it in different ways, but at the end of the day, buddy punching is a method for employees to get paid for time not worked.

Aside from the direct financial costs, buddy punching also creates secondary problems for companies:

  • Decreased productivity - employees who buddy punch tend to be less productive overall
  • Poor workplace culture - it fosters an environment where dishonest behavior is tolerated
  • Distrust - employees who refrain from buddy punching can become distrustful of coworkers who abuse the system

Left unchecked, buddy punching can quickly spiral out of control and become an accepted norm at a company. That's why it's crucial for businesses to take proactive steps to eliminate buddy punching through proper time tracking methods and controls.

Online Time Tracking Software Reduces Buddy Punching

Now that you understand the full impact of buddy punching behaviors, let's explore how modern online time tracking software can prevent buddy punching and eliminate time theft in the workplace.

The core premise behind online time tracking is accurately recording the true hours each employee works. Advanced software coupled with technology like biometric time clocks makes this possible, even for distributed, remote workforces.

Biometric Time Clocks

Fingerprint scanners, facial recognition, iris scanners and other biometric time clocks paired with time tracking software are extremely effective at preventing buddy punching. With biometric controls, it becomes nearly impossible for one employee to clock in or out and have it recorded as another employee.

For example, fingerprint scanning technology uses optical sensors to create a highly detailed scan of each employee's unique fingerprints. This data is stored in the system and used to verify their identity each time they clock in or out. Facial recognition uses dual cameras to perform a 3D analysis of over 60 unique facial points - far more than a standard photograph. This data is also stored as unreproducible biometric data, making it impossible for one employee to scan in as another.

Biometric controls eliminate the loopholes that enable buddy punching. Whereas paper timesheets or even ID badge punches can be falsified, biometrics tie each time punch back to the actual employee who worked those hours.

Geofencing Mobile Apps

In addition to biometric office time clocks, software with geofencing mobile apps provides oversight for remote employees. GPS coordinates from smartphones are compared to set geofences for job sites, locking down location to prevent off-site punches.

For example, a construction crew is set up with a geofence around the worksite. If an employee tries to clock in from home instead of the site, the app detects their true location and prevents the invalid punch.

Software Visibility & Reporting

Online time tracking software also provides visibility that deters buddy punching. Managers and HR personnel have access to reporting on invalid punches, time edit requests and other anomalies that may indicate time theft.

Some platforms even allow comments on punches. So if an employee has a valid excuse for an irregular punch or edit request, they can add context for managers to review.

Advanced analytics provide insights like most/least punctual employees, overtime trends, and other KPIs to spot problem areas. Software often integrates with video surveillance or uses AI to detect patterns of time theft as well.

This level of transparency makes it much harder for employees to get away with buddy punching unnoticed.

Broader Benefits of Online Time Tracking

Aside from controlling buddy punching and time theft, online time tracking solutions bring other benefits:

  • Compliance - Software meets the record keeping and documentation requirements of labor regulations like the Fair Labor Standards Act (FLSA).
  • Accuracy - Integrations with payroll systems reduce errors in pay calculation.
  • Data analytics - Reporting provides insights into overtime, absenteeism, schedules, and other labor metrics.
  • Productivity - Track employee productivity rates tied to hours worked.
  • Scheduling - Web and mobile apps allow managers and employees to manage schedules.
  • Labor cost control - Make informed staffing decisions based on true labor data.
  • Dispute resolution - Timestamped records resolve wage disputes or misreported hours.
  • Platform flexiblity - Choose cloud-based or locally hosted software with a variety of features.

Today's online time tracking systems are advanced end-to-end platforms for controlling labor costs, improving productivity, and running your payroll smoothly.

Choosing the Right Time Tracking Software

With the right software platform, businesses can eliminate buddy punching, improve payroll accuracy, and gain insights into their workforce productivity.

When evaluating options, look for these key features:

  • Flexibility - The ability to track hourly, salaried, and contract workers under one system.
  • Configuration - Set up custom pay rules, labor policies, overtime calculations, and more.
  • Shift scheduling - Tools for creating and managing employee schedules.
  • Leave management - Track vacation, sick days, and other leave.
  • Mobile app - Well-designed app for remote workforce management.
  • Notifications - Alerts for missed punches, overtime, and other configured events.
  • Real-time dashboard - At-a-glance metrics and reports for managers.
  • Integrations - Seamless syncing with your payroll, HRIS, ERP, and other systems.
  • Access controls - Manage permissions across roles like employee, manager, execs, admins.
  • Data security - Encryption, access controls, and audit logs to protect sensitive data.

Prioritizing these features will ensure you choose a comprehensive platform to meet your needs both now and as you scale.

Stop Buddy Punching with Modern Time Tracking

Buddy punching has no place in today's modern workforce. Not only does it create direct wage theft, but indirectly fosters a culture of distrust and non-productivity.

With online time tracking software, real-time visibility, and advanced analytics, businesses can now stay one step ahead of time theft. Biometric controls, geofencing, and transparency features eliminate the outmoded practice of buddy punching.

Don't let buddy punching continue sinking your profits. With a robust time tracking system, you can optimize your labor costs, productivity, and bottom line results.

Ready to stop buddy punching for good? Contact us today to learn more about advanced workforce management solutions.

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