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Picture this scenario: a crew member is running late to their construction job because of traffic or needs to leave a few minutes early for an appointment. So, they ask a fellow crew member to punch in (or out) for them, thinking a few minutes here or there is no big deal. But this action is considered time theft and can greatly hurt a construction company’s bottom line. That’s why understanding why it happens and what steps your company can take to prevent it are so crucial. 


What is Buddy Punching? 

Buddy punching is the term used for when an employee at a construction company clocks (or punches) in or out for someone else. While it may seem like a harmless act that only happens occasionally, this form of time theft is actually a huge problem. In a Quickbooks survey, 46% of employees admit to adding 15-60 minutes to their timesheets, and 3% admitted time theft of 60 minutes or more.  

Time theft may be intentional, like when a worker is clocked in and getting paid for time while they’re away from work or engaging in personal activities. It includes acts like: 

  • Extended meal or smoking breaks 
  • Using mobile or desktop devices to check social media, personal email, and other non-work tasks for an excessive amount of time 
  • Sleeping on the job 
  • Taking too many personal phone calls 
  • Spending too much time socializing at work 
  • Stalling to bring their time up before punching out 
  • Clocking in but not starting work immediately 

But time theft also occurs by accident if employees don’t fully understand your company’s timekeeping policies. Workers may also forget when they started or stopped working, leaving them to use their best estimate. And, older time tracking systems, like paper timesheets and spreadsheets, are less accurate and may round working hours up or down. They’re also more prone to human error during the payroll process.  

Buddy punching impacts not only your construction team’s productivity but also the accuracy of your timesheets and payroll, leading to hours of pay for work that wasn’t completed. Construction companies are legally required to pay for the work hours employees log due to the Fair Labor Standards Act (FLSA), even if the company believes a worker committed time theft. The best way to avoid paying for work that didn’t happen is to prevent and reduce buddy punching. 

 


How Time Tracking Technology Prevents Buddy Punching 

Modern time tracking tools eliminate paper timesheets completely. They come equipped with technology that helps prevent buddy punching while also making it easier to detect fraud if it does occur. Consider a time tracking tool that offers at least one of the following features: 

  • GPS tagging: Devices equipped with GPS tagging technology enforce location-based attendance, so workers can only clock in and out while they’re on the job site or in the office. Paired with a mobile app, your employees can record time accurately from wherever they work. 
  • Photo capture: This technology takes a picture of the user as they’re punching time, preventing workers from clocking in or out for each other.  
  • Biometrics time clocks: These physical time tracking terminals include fingerprint or facial recognition technology to ensure that only the authorized employee is the one who’s punching in and out. This solution is great for offices but may not work well in the field. 
  • Geofencing: This technology allows your construction company to set specific geographic boundaries where workers can clock in and out. Geofencing can be applied to both your office locations and remote construction job sites. However, this technology isn’t effective if you have employees who work from home, so you’ll need to invest in additional protection.  

5 Tips to Reduce Buddy Punching 

Buddy punching and time theft can be easy to identify but hard to prove. The best way for your construction company to reduce buddy punching is by implementing the following practices. 

1. Create and Share Clear Attendance and Time Theft Policies 

Develop easy-to-understand company documents that clearly define your attendance and time theft policies. Employees need to know that your construction company doesn’t tolerate time theft like buddy punching and clear up any confusion around the topic.  

You’ll want to create a written policy or handbook that is easily accessible to all workers and addresses: 

  • Common examples of buddy punching and time theft 
  • Employee FAQs about it 
  • How workers should track their time 
  • Acts that aren’t acceptable 
  • Consequences of committing time theft  
  • Who to contact if they have questions or concerns
 

2. Set Productivity Expectations 

To keep construction workers from spending too much time socializing or slacking off on the job, develop weekly productivity goals for individuals based on hours or project deliverables. This step keeps everyone focused and on track while boosting overall productivity. Employees will know what they need to accomplish without burdening their site supervisor or manager.  

3. Add an Extra Security Layer to Timesheets 

Make it harder for employees to punch in or out for each other by implementing individual passwords, photo capture, or other security measures. Regardless of the time tracking method your company uses, adding an extra step to the process makes it more challenging and helps deter workers from buddy punching. If you don’t already use a system that incorporates the technology discussed above, consider an upgrade.  

4. Keep Employees Engaged

Poor morale among your workforce can decrease their productivity and increase the chances of time theft and buddy punching if they feel like their time isn’t valued. Construction companies can address employee engagement issues by regularly checking in with their departments for feedback and resolving any issues. You may also want to build employee loyalty by offering training or professional development opportunities. 

5. Upgrade to Time Tracking Software 

Time tracking tools are often included in payroll software and can help with time tracking issues like buddy punching in addition to their payroll functions. The best software applications offer mobile apps so each employee can clock in and out using their phone and feature technology like GPS tagging and other security measures to ensure accurate time tracking. These features allow you to monitor the location of workers while on the clock in addition to their hours worked — ensuring that workers are on site when they say they are. 


Prevent Buddy Punching with hh2’s Construction Time Tracking Tools 

If your construction company is in the market for software to reduce buddy punching and time theft, consider hh2’s Remote Payroll. Our time and attendance tracking tools are designed to handle the complexities of the construction industry. And with technology like GPS tagging and photo capture, your company can rest assured that buddy punching is a thing of the past. See how hh2 can simplify your time keeping. 

 

How to Prevent Buddy Punching at Your Construction Company
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