“Buddy Punching” is costing businesses millions

Alyssa Fernandez

23 August 2017    |   

According to the latest research, “Buddy Punching” is costing US businesses USD373 Million (or AUD471 Million*) annually. If you don’t know what buddy punching is, it is the practice of an employee clocking in at the office’s Bundy clock on behalf of another who might be coming in late for work. The practice of buddy punching isn’t limited to cases of people avoiding being late. This practice is also used when employees ask their buddies to clock in and out for them even if they are not at work. This tricks employers to pay them for the time that they didn’t work at all. This is among one of the most popular examples of time theft, commonplace at businesses that don’t use employee time clock software. In a study done by Software Advice, 43% of surveyed employees admitted to committing time theft. Read: How to Eliminate Time Theft What must your business do to avoid “buddy punching”? With more access to mobile communication tools, it is becoming easier for employees to coordinate buddy punching. As consumer technology is rapidly evolving, business tools must evolve as well. Old-school Bundy clocks or paper timesheets are not gonna cut it anymore. Biometric time clock devices may solve this age-old practice. However, these systems are costly and prone to problems of its own. Using cloud-based employee time clock software is a more viable option for businesses. Since it can use existing tablets to host the application, you don’t need to purchase new hardware. Make sure that it has everything you need to ensure that employees don’t buddy punch for each other. Features you should for in an employee time clock software are unique PIN input, photo verification, and a live feed feature that lets employers check in real-time who really are at work.

According to the latest research, “Buddy Punching” is costing US businesses USD373 Million (or AUD471 Million*) annually. If you don’t know what buddy punching is, it is the practice of an employee clocking in at the office’s Bundy clock on behalf of another who might be coming in late for work.

The practice of buddy punching isn’t limited to cases of people avoiding being late. This practice is also used when employees ask their buddies to clock in and out for them even if they are not at work. This tricks employers to pay them for the time that they didn’t work at all.

This is among one of the most popular examples of time theft, commonplace at businesses that don’t use employee time clock software. In a study done by Software Advice, 43% of surveyed employees admitted to committing time theft.

Read: How to Eliminate Time Theft

What must your business do to avoid “buddy punching”?

With more access to mobile communication tools, it is becoming easier for employees to coordinate buddy punching. As consumer technology is rapidly evolving, business tools must evolve as well. Old-school Bundy clocks or paper timesheets are not gonna cut it anymore. Biometric time clock devices may solve this age-old practice. However, these systems are costly and prone to problems of its own.

Using cloud-based employee time clock software is a more viable option for businesses. Since it can use existing tablets to host the application, you don’t need to purchase new hardware. Make sure that it has everything you need to ensure that employees don’t buddy punch for each other. Features you should for in an employee time clock software are unique PIN input, photo verification, and a live feed feature that lets employers check in real-time who really are at work.

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Industry Insights    |   

“Help! My employees are always late!”

Do you find in your business employees are constantly showing up for work late, or clocking off just a little bit too early for your liking? Tanda can help you keep track of your employees clock-ins and clock-outs. The SMS feature alerting you when people are late is also a handy Tanda tool to keep an eye on the hard workers and the not-so-hard workers in your team. But there’s one thing a Tanda Clock can’t do, and that’s motivate your team to show up on time to put in their best work. There’s a few key reasons staff start to dawdle on their way to work. One key factor is motivation. Once motivation drops in the office, kitchen or factory, the unproductive sentiment can spread like wild fire. You can help bring up your employees motivation levels with a few tips and tricks that the team here at Tanda has learned and implemented as well. Automation Firstly, automate what you can. If there is something an employee has to do that could be done just as easily with an add-on, application or new system then what are you waiting for? The same way Tanda automates payroll and rosters meaning less time wasted on the boring stuff, you can get rid of the boring tasks for your employees too. Rotation There are some things that have to happen around the workforce. But, if one employee has to carry out the same task or responsibility for more than three hours you will notice they might be getting bored. Try rostering them onto the same task for days or weeks on end and then ask yourself can you really blame them for being late all the time? Instead, it’s better to delegate and rotate tasks between your team. Productivy levels tend to spike at the beginning of a task, so if you can keep your team motivated with new or different things to do you’ll find less stragglers getting to work in the mornings. Optimization Which brings us to optimising how you use your time. Tanda knows a thing or two about time and attendance. Studies have shown people were more likely to be more cooperative and get work done in the morning. Throughout the day the peak in productivity comes unsurprisingly after lunch breaks. The worst times for positive results came just before lunch breaks and nearing the end of the shift. With that in mind, try and schedule the nitty gritty work, unpleasant tasks or least favourite jobs in the mornings and just after your staff have had a break to refresh. Save the fun stuff for the long hours and just before home time. Because really, if your staff are passionate about what they do for your company then there should be plenty of fun stuff for them to do.

Awards & Rostering Industry Insights    |   

The Print Bar uses MYOB & Tanda to control costs

The Print Bar’s warehouse in the inner-suburbs of Brisbane is a symphony of people and machinery, churning out some of the highest quality custom t-shirt printing available in Australia. In just 5 years, Managing Director Jared Fulinfaw has grown from 2 employees in his parents’ garage to become one of largest suppliers of custom t-shirt printing in Australia, with 28 employees working around the clock, 7 days a week. It’s a resounding success story, but it’s clearly been no accident. Jared is keenly focused on running a lean business and striding ahead of the competition. Tools for rapid growth To run The Print Bar, Jared is hands on with everything and believes that up-to-date and forward looking financial data is essential. He uses MYOB to manage his finances, and Tanda to manage his people. “MYOB lets me keep track of my inventory and expenses, I even have my accounts reconciled fortnightly so I know exactly where I am. Tanda is for managing my biggest asset and my biggest expense – my team. To sell my product at competitive prices and maintain my margins, I need to be great at managing, rostering, and keep a very close eye on the costs of my staff.” “My team is everything” says Jared. And the team agree — they say he’s the best boss ever. Rostering Every week, Jared uses Tanda to put together his roster. He starts by copying the last week’s so he has a template to work with, then makes any changes necessary based on availability or feedback from his team during the week. Next, he checks the roster’s cost – based on the award rules he’s configured – to ensure that he’s within budget. When it’s all looking good, he sends the roster out to staff by email. He generally does this well before the working week; if he needs to make any urgent changes afterwards, an updated roster by SMS alerts the relevant people. Attendance The Print Bar staff clock in and out of work using a Tanda time clock. It’s positioned on the wall near the entrance to the staff room, so it’s easy to spot and hard to forget! For Jared, the time clock acts as a virtual assistant – every day he gets a roll call of who clocked in, and who didn’t (based on their roster). And if someone’s not at work on time on a weekend, he also gets an SMS alert so he can quickly run in if need be. Timesheets and Payroll Every few days, Jared checks over staff timesheets, makes any necessary changes, and approves shifts when he’s happy with them. At the end of the fortnightly pay cycle, he clicks a button to export the timesheets directly to MYOB. Because Jared’s configured Tanda to work with his EBA, all of the data he downloads is mapped to the correct MYOB wage category – saving him hours he’d have spent doing it by hand.

Product Updates    |   

Adding unavailability just got way simpler!

The new Tanda Mobile App is really starting to take off with over 5,000 new users in the last month. On the back of some customer feedback, we have added our most requested feature, the option to enter unavailability in the app. Native Mobile Experience for Employees Employees have always been able to enter the times they are unavailable via an online portal, but it was not always easy to get to. Now, a better version of this functionality is available any time through the app – meaning employees have a single location to check their rosters and also let their manager know when they can’t work. Once an employee enters their unavailability, we’ll let their manager know with an email. Filing of unavailability directly within the app Recurring unavailability can be scheduled (e.g. for students with classes) Real-time roster updates whenever an employee adds or changes their unavailability Using Unavailability Knowing the time your employees prefer not to work helps you plan a roster that works better for everyone. Tanda lets you do this in two ways. You can see all unavailability requests via My Tanda under ‘Time Off’ > ‘Unavailability’. You will be notified if you create a shift for someone that clashes with their availability. It doesn’t stop you from rostering the person at that time, it just gives you a heads-up about their schedule. Getting your Employees to install the Tanda Mobile App Encourage your employees to install the app directly from the Apple App Store (for iOS) and Google Play Store (for Android) by searching for ‘Tanda Employee App’. If you have any questions about your employee’s account or how to use the app, visit our Help Centre. You can also send an email to employees@tanda.co and we’d be happy to help.

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About the author

Alyssa Fernandez

Alyssa Paula is a left-handed creative based in Manila. Having a knack for design, branding, and copywriting, she creates tasteful graphics and copy, and develops marketing strategies for Tanda, the world's #1 workforce success platform.

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Industry Insights

“Help! My employees are always late!”

Do you find in your business employees are constantly showing up for work late, or clocking off just a little bit too early for your liking? Tanda can help you keep track of your employees clock-ins and clock-outs. The SMS feature alerting you when people are late is also a handy Tanda tool to keep […]

Awards & Rostering Industry Insights

The Print Bar uses MYOB & Tanda to control costs

The Print Bar’s warehouse in the inner-suburbs of Brisbane is a symphony of people and machinery, churning out some of the highest quality custom t-shirt printing available in Australia. In just 5 years, Managing Director Jared Fulinfaw has grown from 2 employees in his parents’ garage to become one of largest suppliers of custom t-shirt […]

Product Updates

Adding unavailability just got way simpler!

The new Tanda Mobile App is really starting to take off with over 5,000 new users in the last month. On the back of some customer feedback, we have added our most requested feature, the option to enter unavailability in the app. Native Mobile Experience for Employees Employees have always been able to enter the […]

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