How to prevent buddy punching and protect your business

In the daily life of businesses, especially in sectors like construction, an insidious form of fraud undermines productivity: buddy punching. This practice, where one employee clocks in or out for another, leads to time theft, skews HR data, and results in significant financial losses.

What is buddy punching?

It refers to the act of one employee clocking in or out on behalf of a colleague who is absent, thereby compromising the calculation of working hours. In the construction industry, where teams are often scattered across various sites, this type of fraud is common. A late or absent employee simply asks a colleague to falsify the time log. This gesture, often seen as a friendly favor, introduces fraudulent intent and leads to a loss of control over the actual hours worked.

The causes of buddy punching fraud

Buddy punching fraud is rarely accidental. It often stems from a permissive environment, failing systems, or a lack of awareness. Here are the main identified causes:

• Outdated timekeeping systems (paper, badge without authentication)
• Lack of clear policy on time tracking
• Lack of training or awareness on the topic
• Implicit tolerance or absence of oversight
• Fraudulent intent enabled by lack of supervision

The mobile timekeeping solution from Mobile-Punch addresses this issue perfectly by offering a customized tool, specifically designed for on-site realities and the constraints of construction sites.

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The consequences of buddy punching for the company: a risk not to be underestimated

Time tracking errors can have serious repercussions on the smooth running of a business. Here are the main impacts:

• Payroll inaccuracies: incorrect entry of working hours can lead to underpayment or overpayment, causing frustration and complaints. For the business, this results in additional costs related to corrections and complicates payroll management.
• Deteriorated work climate: uncorrected inaccurate time records can foster a sense of injustice among employees, harm team cohesion, and affect overall productivity.
• Direct financial loss: According to the 2024 ACFE report, 15% of corporate frauds in Canada and the US are payroll-related, with an average cost of $2,800 per month per affected company. These frauds represent significant financial losses that accumulate over time and severely impact a company’s profitability.
• Legal risks: failure to comply with maximum working hours or mandatory breaks exposes the company to regulatory sanctions. Repeated errors can lead to fines or legal disputes with labor authorities.
• Increased administrative burden: HR teams spend considerable time manually correcting timekeeping errors, at the expense of higher-value tasks. This overload related to tracking working hours undermines operational agility.
• Loss of employee trust: an imprecise or unfair time tracking system can lead to decreased employee engagement, foster disengagement, and increase staff turnover.

How to identify and prevent buddy punching?

Preventing buddy punching relies both on the right tools and a company culture based on transparency and accountability. Here are some best practices to implement:

• Raise employee awareness: train teams on timekeeping rules and the consequences of time theft at work. During seminars or team-building events, educate employees and managers on the importance of honest time tracking without harming any team members.
• Implement a clear policy: document penalties for fraud and post the rules near clock-in areas. Include timekeeping training during employee onboarding and present the legal consequences of fraud (penalties, dismissal, etc.).
• Conduct regular audits: cross-check timesheet data with actual tasks completed. Train managers to monitor discrepancies between reported time and work actually performed. For instance, at week’s end, managers should check for any irregularities in the time tracking system and compare them with on-site observations to ensure rigorous and fair hour management.
• Implement strict schedules: monitor time logs outside authorized hours. Set up automatic alerts for significant time discrepancies to avoid time loss or detect schedule errors.

Traditional methods vs. digital solutions: a necessary shift to prevent time clock fraud

Manual time tracking methods, such as paper sheets or Excel files, are prone to error and fraud. They are also time-consuming for HR teams and managers. In contrast, a mobile timekeeping software allows:

• To reduce missed clock-ins at work through notifications
• To restrict system access via IDs or biometrics
• To view overtime and anomalies in real-time

Mobile-Punch meets these needs by offering an intuitive, easy-to-configure tool adapted to field realities. Discover our work schedule management service to limit internal fraud.

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Combatting buddy punching with a long-term cost-effective solution

Implementing a reliable timekeeping system is not an expense but an investment. Below are the advantages of mobile time tracking:

• Reduction of losses related to time theft and timekeeping fraud
• Flexibility to clock in from any location while providing accurate real-time data
• Improved work climate thanks to a fair policy
• Administrative time savings for managers and HR
• Compliance with labor laws and rest time regulations

In the long run, implementing a system like Mobile-Punch allows the company to better allocate resources, optimize overtime management, and ensure compliance with best practices. Buddy punching is a real threat, but one that can be tackled with a combination of internal policies and effective technological solutions. By choosing an app like Mobile-Punch, you protect your operations, improve transparency, and strengthen trust within your teams.

Learn more about buddy punching

Is it legal to monitor employee time logs?

Yes, as long as monitoring respects privacy and employees are informed.

What are the possible penalties for buddy punching?

Disciplinary actions may be taken by the employer, ranging from a warning to dismissal for serious misconduct, depending on the severity of the offense (sanctions depend on the company’s internal regulations and applicable national laws).

Are there specific solutions for the construction sector?

Yes, Mobile-Punch is designed for construction site needs: multi-site, personnel geolocation, variable schedules.

How long does it take to install a time tracking software?

Just a few minutes. The tool is suitable for both small businesses and large organizations.

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