Modern companies – already operating on an ultra competitive playing field – face a daily struggle to safeguard their earnings and pay close attention to their profit/loss ratio. Ultimately what it boils down to is companies need to operate in an effective and successful manner in order to earn a profit. But defending against a loss of that profit is another thing entirely, because companies are vulnerable in a number of ways they may not expect.
The term “buddy punching” refers to the practice of hourly workers punching the time clock on behalf of fellow employees who are leaving early, arriving late, absent from work or not scheduled for work that day. A major consequence of buddy punching is that employees are getting paid for time in which they are not even on the job. Companies may think that an extra minute here or there does not significantly hurt their organization and worrying about it is more of a nuisance than anything else, but there is a staggering reality associated with buddy punching. Recent studies have concluded that buddy punching can account to up to 5% of a company’s payroll cost. This could amount to thousands of dollars – a huge loss to any company, regardless of their size.
To combat against buddy punching, corporations are beginning to take a better look at their current time clock systems. With an automated time and attendance system, companies are able to eliminate the risk of buddy punching. By implementing these systems, corporations nationwide are experiencing recouped payroll costs and a positive impact on their bottom line.
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