What are the Consequences of Buddy Punching?īesides hurting your company’s bottom line, buddy punching can lead to a culture of dishonesty, absenteeism, and disengagement between employees and the employer. One instance of buddy punching often leads to another-if one employee gets away with it, other employees may think it’s OK and start doing it, too. If this happens once a week, that’s 8 hours per year. For example, let’s say you have an employee who repeatedly shows up 10 minutes late and asks a coworker to punch in for him. While that’s not a huge chunk, it’s a significant amount, and as a small business, you can’t afford to be paying for labor that isn’t getting done.Ī few minutes here and there may not seem like a big deal, but over time, it can add up. Various studies suggest that buddy punching can cost a company around 7% of their total profits. In this situation, workers may not feel bad about violating their employer’s trust and may not feel they have anything to lose by engaging in buddy punching. An Unhealthy Work CultureĪ culture where employees don’t feel valued or trusted can lead to indifference and dishonesty. Some employees may simply not know that there’s anything wrong with buddy punching, or at least not think of it as a serious offense-especially if you don’t have a clear policy outlining the consequences for buddy punching. Even a biometric time clock, which uses an employee’s biometric data (fingerprints, iris or retina scans, for example), can be an imperfect solution, as an employee can leave the premises after they clock in. Some systems even allow employees to share usernames and passwords. Systems that are outdated or not secure enough allow employees to get away with buddy punching, and when it’s so easy, they may not see a problem with it. Here are a few things that may contribute to a culture where buddy punching is seen as acceptable: Ineffective Time Tracking Systems The reasons for buddy punching go deeper than just an employee wanting to take advantage of their employer. While it won’t usually lead to fines or jail time (except in severe cases), it’s a legitimate reason to fire an employee. That’s because it’s actually considered a form of fraud and can end up costing companies a lot of money-especially in the small business world. In extreme cases, buddy punching can be considered a crime-in which case, it is illegal.
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