The True Cost of Buddy Punching . . . and How Biometric Time Clocks Can Help
How many of your employees are accurately and honestly tracking their time? If you are part of an organization with a cumbersome manual employee time tracking system, this question may leave you scratching your head. Chances are, some employees are taking an extra five minutes here, another five there, whether they are coming in late, leaving a bit early, or taking extra time during lunch or on breaks.
When employees are tardy, when they want to leave early, or when they need more time to complete an errand during lunch or on a break, they may ask a friend to engage in “buddy punching.” The practice is more pervasive than you may believe. According to a study done by Nucleus Research in 2008, 19% of employees admitted to “buddy punching” for a co-worker or colleague at least once per year, and 74% of organizations are impacted by buddy punching.
I know what you’re thinking. Five minutes here, five minutes there. No big deal, right? Wrong. Aside from the fact that it is dishonest, consider the true costs of buddy punching.
A survey done by a payroll company estimated that companies paid between 3 and 5% of their annual payroll due to fraudulent time tracking practices such as buddy punching.
So, let’s do some math. Let’s say that your organization has 100 hourly employees who work 40 hours per week. On average, each employee makes $9 per hour. Annual payroll, excluding overtime, would be $1,872,000. Let’s be conservative, and say your organization pays only 3% of its annual payroll to buddy punching. If your organization could find a way to eliminate buddy punching, it could recoup $56,160 of its payroll. That’s not small change!
Just a decade or so ago it used to be almost impossible to monitor buddy punching. You had to catch employees in the act. Today, it’s a lot easier to eliminate buddy punching and other fraudulent time practices with biometric time clocks.
Biometric time clocks are devices that scan the employee’s finger in order to verify identity. Because the employee is not able to clock in or out before identity is verified, these systems completely eliminate dishonest time practices. Advance Systems Time & Attendance Software’s biometric time clocks feature state-of-the-art lumidigm technology. Multispectral imaging reduces common fingerprint capture issues and works in real-life environments wet, cold, or hot.
Are you ready to see how Advance Systems biometric time clocks can help your organization?