Most options are available with little added effort or cost. Outside of creating new workplace policies, new tech also provides business owners and managers more resources to prevent buddy punching. If they give a coworker their password, they might be giving them access to personal information. In a time when personal data hacks are becoming more common, make sure your employees understand that sharing their timekeeping login could also mean sharing their personal data. ![]() Set specific standards for passwords-including long sequences, numbers, symbols, and capitalization-that make them harder to share or input by another coworker. Using passwords for employee timekeeping can be a low-cost obstacle to buddy punching. If you catch an employee buddy punching, it’ll be grounds for termination. Then print out a copy of the new buddy punching policy and posting it where all staff can see it. You don’t need to call out specific employees, but announce the buddy punching policy to your team as a group so everyone’s aware. Make it clear that there’ll be zero tolerance for anyone touching another worker’s timecard or using your timekeeping system under a different name-or any reason. ![]() If you don’t already have a formal buddy punching policy in place, now’s the time to put one together. The cheapest and quickest solution to buddy punching is addressing it head-on. Here’s how you can prevent buddy punching and get a handle on your payroll. No small business owner wants to give away $30,000 in stolen time. Since the majority of small businesses employ less than 20 people, multiple employees using buddy punching could cost your payroll upwards of $30,000 annually. That may not sound like much, but over a year, the average cost of buddy punching could equal close to $1,560 per employee. If your workers are part-time and earn minimum wage, 4.5 hours of buddy punching equals a little over $30 per worker in stolen wages each week. In the U.S., the federal minimum wage is $7.25 an hour. According to the American Payroll Association, three-fourths of employers lose money to buddy punching, with employees getting 4.5 hours worth of un-worked wages each week. However, a few minutes here and there of coworker buddy punching can certainly add up on your payroll. So your buddy does you a favor and punches your timecard by clocking in/out for you-thus the name, buddy punching. Maybe you can’t show up for your shift at all. Or you need to duck out a few minutes early and don’t want the boss to know, and you ask your coworker to clock you out at the actual end of your shift. You send a quick text to a coworker asking them to clock in for you. Say you’re running late for work and you won’t be able to clock in on time. It’s called “buddy punching.” So, what is buddy punching?īuddy punching is when a coworker punches your timecard (aka clocks in) in your absence. However, the biggest cause of employee time theft doesn’t happen solo. Staying clocked in during breaks, not clocking out to run errands, or checking social media during work are all examples of time theft. Put simply, time theft occurs when an employee accepts pay for time they didn’t actually work. are affected by what is known as “time theft” each year. ![]() Close to 75 percent of small businesses in the U.S.
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