What Is Buddy Punching? How It Works, Impact & How to Prevent It

Buddy punching refers to one person using a false name and/or identity in an online chat system as part of their “jacking” or stealing. To prevent it, make sure others know your real names and don’t talk about anything you wouldn’t want the public to see.

“Buddy punching” is when a person uses someone else’s credit card without their permission. It can be done in many ways, such as using the card number to make purchases on the internet or by swiping the card at an ATM machine. The impact of this is that it can lead to serious consequences and if you are caught, you could face criminal charges. Read more in detail here: buddy punching meaning.

What Is Buddy Punching? How It Works, Impact & How to Prevent It

Buddy punching occurs when an employee clocks in or out for a colleague in an employer’s time tracking system. In essence, it’s a case of payroll fraud. Employees are trying to manipulate the system by making it seem as though one of them is working when they aren’t, resulting in the company paying money that isn’t entitled to them.

Buddy punching is often used to guarantee that an absent employee gets paid for hours they did not work or to avoid being punished for not according to their work schedule.

Buddy Punching and Its Effects

Buddy punching may be done the old-fashioned manner, with one person punching in on the paper time card of another employee. A coworker may encourage an employee to log in to their phone, chat, or computer system to make it look as though they are at work.

It might also happen if an employee departs early but a colleague logs them out of the time tracking system at the appointed hour.

Buddy punching may entail misrepresenting hours spent on a project or as part of a contract in certain situations. Consider the following scenario: a team has a contract for 100 hours of labor, but the assignment only takes 90 hours to finish. Buddy punching occurs when a team boss manipulates time records to make it look like 100 hours were spent.

It’s a two-way street when it comes to accurately reporting hours worked. Employees agree to work the hours that are reported, and the company agrees to pay for those hours. Buddy punching is a violation of this agreement that generates problems for everyone.

Employer Costs of Buddy Punching

Employers lose millions of dollars each year because to buddy punching. This is due to the fact that workers who are not working are nonetheless paid.

When an employee clocks in, many employers believe that they will work the whole shift. However, if an individual adds a few minutes to their weekly routine, the expense might soon mount. For example, if a $10 per hour employee adds 15 minutes to their schedule once a week for a year, the business will pay $130, not including missed productivity. This does not include the costs of terminating the employee and finding and training a replacement.

Buddy punching may, in certain situations, contribute to a drop in workplace morale and productivity. Employers should take efforts to guarantee that their workers are correctly recording their hours and just clocking in for themselves to avoid this.

Buddy Punching’s Impact on Businesses

In sectors that pay an hourly salary and have rigorous attendance standards, this time-stealing activity is particularly frequent. Buddy punching is less common in salaried employment since most paid workers have some scheduling flexibility and the amount of hours they work isn’t as strictly restricted (unless they’re nonexempt salaried employees).

Buddy punching has an impact on the following businesses:

  • Restaurants
  • Manufacturing establishments
  • Medical businesses
  • Retail
  • Contact center

How to Keep Your Friends From Punching Each Other

Buddy punching may be avoided if your payroll security measures are tightened. You may assist by enforcing preventive rules and using current time-tracking technology.

For additional information on how to avoid buddy punching, go through the tabs.

The employer is responsible for explicitly defining the repercussions of buddy punching. If they don’t, workers may be punching time for others since they don’t understand it’s a problem. Employers should establish attendance rules to assist employees avoid potentially hazardous or costly circumstances.

Make the policy a part of the employee handbook, put it near your time clocks, and publish it online. During the onboarding process, buddy punching should also be addressed. Employees should be required to not only comprehend the policy, but also to sign a declaration to that effect. They should keep the original in their personnel files.

Taking Care of Time Theft

Buddy punching is time theft and payroll fraud, and it should be punished severely. Many organizations enforce severe standards by informing employees that time theft offenses may result in a formal warning or even termination. Most businesses spell out the ramifications of this behavior in their employment agreements or workplace regulations, which often include:

You should examine your local employment regulations before developing an attendance policy that includes buddy punching guidelines and sanctions to prevent legal concerns if your organization is challenged. If your firm is tiny, hiring an HR expert to assist you design legal employment rules may be beneficial.

If you have more than 10 workers and are still recording time on paper, it’s time to modernize. To prevent buddy punching, modern time monitoring technologies include cameras, face recognition technology, biometrics (such fingerprints), fobs or ID cards, GPS (so you know where they’re clocking in), and more.

Time tracking on the internet

You may better manage your employees’ time by using web-based applications to clock in and leave. While this may not be the most secure method of preventing buddy punching, other security precautions may be implemented, such as utilizing unique passwords and requiring employees to clock in using their business computer rather than from home.

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Homebase provides PIN-based security for clocking in, as well as team management features that allow you to keep tabs on your personnel expenditures and budget.

Biometrics is a kind of technology that uses biometrics to

Biometrics is a kind of technology that uses biometrics to prevents buddy punching by utilizing facial, fingerprint, retina, and palm recognition, making it difficult for employees to clock in for others. Before implementing these technologies, review local laws regarding how employers are allowed to collect, store, or disclose this type of personal information. Some states may limit or regulate how your company can use biometric data. If you operate in multiple states, check each state’s laws.

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A biometric time clock is available from TimeLogix.

Tracking using GPS

To monitor where your staff clock in, GPS technology is used. This tool is particularly useful for companies that have workers who work in different locations or in the field. Employees may use an on-site device, a computer, or a mobile app to log in. The mobile app is useful for people who need to keep track on staff who are on the road.

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You can purchase in-vehicle Tracking using GPS devices on Amazon.com.

Geofencing

Employees are notified when they arrive or depart a jobsite using geofencing technology. This notification serves as a reminder to them to clock in or out. People often forget to clock in or out when they arrive at work or leave in a hurry, resulting in timesheet inaccuracies and inconvenient adjustments. This device may also prohibit workers from clocking in until they have entered their work area.

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Geofencing time tracking technology is available at Homebase.

For a multitude of reasons, security cameras are beneficial. To watch who is clocking in and when, hang one over the time clock. Other HR problems like as harassment, theft, safety concerns, or vandalism may also be monitored using cameras. This form of monitoring technology aids in the protection of both the employee and the business.

Employees don’t always hit each other for the sake of making more money. They often do it to avoid losing their jobs or getting chastised for being late or departing early. Many companies have rigid attendance requirements that provide little room for flexibility in the event of an employee’s tardiness.

You don’t want to foster a “us against them” mentality in which the employer or corporation is seen as the adversary. Employees feel justified in taking action against the organization as a consequence of the terrible work culture.

Create an inclusive, supportive workplace culture to avoid this. Establishing an attendance policy that promotes a healthy work-life balance and providing workers a competitive salary so they don’t feel compelled to “stick it to the man” are two ways to do this. Employee supervisors should be taught how to deal with attendance difficulties in a fair and compassionate manner. You’ll also need to prepare contingency plans in case an employee is late, so your organization doesn’t incur production or customer service losses.

If you think you have a problem with buddy punching or just want to prevent it before it starts, consider using an Time tracking on the internet app like Homebase. For employers with one physical location, it offers a free plan that allows all employees to clock in via mobile app. As each employee clocks in, the software takes a picture to help you verify their identity. You can also add Tracking using GPS for an extra fee.

Pay a visit to Homebase

Conclusion

Buddy punching is a major and costly HR problem to deal with. However, by properly expressing attendance regulations, cultivating a positive work culture, and using current time-tracking tools, you can help to avoid time theft.

Consult your HR staff on how to effectively develop attendance rules if your organization is huge. Consider hiring a human resource expert to assist you set effective attendance regulations that include tight restrictions regarding buddy punching if you’re a startup or a small business. Payroll training may also assist you in incorporating extra controls into your workflow.

Related Tag

  • time theft
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