Buddy Punching Explained: Strategies to Prevent It

What is buddy punching?

Buddy punching is a form of workplace time theft where one employee clocks in or out for another who isn’t actually present. This means businesses end up paying for hours that were never worked, inflating payroll costs and reducing overall productivity.

At first glance, it might seem like a harmless favor between colleagues, but buddy punching directly impacts a company's profitability and operational efficiency. It can lead to financial losses, disrupt shift scheduling, and create a culture where dishonesty is tolerated.

How does buddy punching happen? Real-world examples

To help you understand how buddy punching occurs, here are a few common scenarios:

• The Late Arrival Cover-Up: John works at a retail store that requires employees to clock in with a PIN code. He’s running late, so he calls his friend Alex and asks him to clock in for him. The system registers John as “on time,” even though he won’t arrive for another 20 minutes.

• The Early Leave Trick: Sarah is scheduled to work until 5 PM, but she has personal plans and wants to leave early. She asks her coworker Jake to punch her out at 5 PM while she sneaks out at 3:30 PM. The employer still pays her for those extra 1.5 hours she didn’t work.

• The Absent Employee Scheme: Mike calls in sick but doesn’t want to lose a day’s pay. His best friend at work, Dave, clocks in for him as if he’s there. Since there are no biometric or GPS tracking systems in place, no one notices.

• Remote Work Manipulation: Lisa, who works remotely, is supposed to log in at 9 AM, but she’s still in bed. She gives her login credentials to a friend who clocks in for her from another location. Her manager believes she has started working, even though she’s not actually online.

These small acts of dishonesty quickly add up, costing businesses thousands of dollars annually. The good news? Employers can prevent buddy punching by using modern workforce management tools and stricter policies. More on that in the next section!

Impact of buddy punching on businesses

• Financial Losses: Employers lose money when buddy punching occurs. They end up paying for hours not actually worked, leading to payroll fraud.

• Legal and Ethical Issues: Buddy punching is a form of time theft. It can lead to legal issues for the business and is an unethical practice that can damage the company's reputation.

• Skewed Productivity Levels: When employees commit time theft, it's hard to accurately track productivity. This can lead to incorrect assessments of a business’s performance.

• Negative Impact on Company Culture: Tolerating buddy punching can create a culture where dishonesty is accepted. This can demoralize dedicated employees and reduce overall employee engagement.

• Compromised Attendance Policies: When buddy punching becomes a norm, it undermines the effectiveness of the company's attendance policy. This can lead to challenges in managing staff and scheduling.

The real cost of buddy punching

Buddy punching isn’t just a small workplace annoyance—it’s a widespread issue that quietly drains company profits. Many business owners underestimate how common it is and how much damage it causes. Let’s break down the numbers.

16% of employees admit to buddy punching

It might seem like a rare occurrence, but research shows that 1 in 6 employees has clocked in or out for a colleague at some point. If your workforce consists of 100 employees, chances are 16 of them have engaged in buddy punching—costing your business more than you realise. 

What this means for employers:
If you’re still relying on trust or outdated time-tracking methods, these numbers prove that your payroll could be leaking money right now.

Buddy punching costs U.S. businesses $373 million annually

Yes, you read that right. American employers collectively lose hundreds of millions of dollars each year due to fraudulent time tracking. This number doesn't even account for indirect losses like productivity dips and workplace morale issues. 

What this means for employers: 
Whether you're running a small business or a large enterprise, you could be losing thousands of dollars per year without realising it. Taking action now can help you protect your bottom line.

Time theft affects 75% of businesses and can inflate payroll costs by up to 7%

Buddy punching is just one form of time theft, but it's a major contributor. Studies show that three out of four businesses struggle with employees fudging their work hours, and payroll costs can increase by as much as 7% due to inaccurate timekeeping.

What this means for you employers:
Even if you think time theft isn’t an issue in your company, there’s a 75% chance that it’s happening. That 7% bump in payroll? Over time, it adds up—especially for businesses with hourly workers.

Understanding the root causes

Buddy punching isn’t just about employees being dishonest—it often stems from deeper workplace issues. Understanding why it happens can help employers prevent it effectively. Here are the most common reasons employees engage in buddy punching:

• Lack of strict time-tracking policies: In workplaces without clear rules or enforcement around clocking in, employees may see buddy punching as harmless rather than a serious offence. If there are no consequences, they’re more likely to help a coworker fudge their hours.
  👉 Solution: Employers should set clear policies outlining that buddy punching is a violation of company rules, with defined consequences for those caught doing it.
  
  
• Outdated or easy-to-manipulate timekeeping systems: Manual time-tracking systems, like paper timesheets, PIN codes, or simple swipe cards, make buddy punching incredibly easy. Employees can simply share login details or clock in for absent coworkers without detection.
  👉 Solution: Switching to biometric systems (fingerprint or facial recognition) or geofencing time clocks eliminates the possibility of employees clocking in for each other.
  
  
• A culture of workplace favours: Many employees don’t see buddy punching as theft—they view it as a harmless favour for a friend. If a workplace has a culture of covering for each other, employees may routinely clock in for late or absent coworkers.
  👉 Solution: Employers need to communicate that time theft affects everyone—it leads to lower productivity, unfair workloads, and potential disciplinary action.
  
  
• Poor work-life balance and scheduling issues: When employees feel overworked, exhausted, or undervalued, they’re more likely to cut corners—like asking a coworker to clock in for them while they take a longer break or leave early.
  👉 Solution: Ensuring fair scheduling, reasonable workloads, and proper compensation reduces the temptation for employees to cheat the system.
  
  
• Fear of penalties for tardiness: Many buddy punching cases happen because employees are running late and don’t want to get in trouble. Instead of facing disciplinary action or a pay deduction, they ask a friend to clock in on their behalf.
  👉 Solution: Employers should focus on understanding why employees are late—whether it’s due to commute issues, burnout, or unrealistic shift expectations—before resorting to harsh penalties.

6 Ways to identify buddy punching in the workplace

Buddy punching can be difficult to spot, especially in companies relying on outdated time-tracking methods. However, certain red flags can indicate that employees may be clocking in or out for each other. Here’s how employers can identify and stop buddy punching before it impacts payroll costs.

1. Inconsistent time logs

🚩 Red flag: You notice that certain employees always clock in or out at the exact same time, down to the minute—even when others in the same role have natural variations in their clock-in times.

✅ How to check: Review attendance records over a few weeks. If you see suspiciously consistent timestamps, especially for employees who work in different locations, it could indicate buddy punching.

2. Employees clocking in when they are visibly absent

🚩 Red flag: An employee’s timesheet shows they clocked in, but managers or colleagues didn’t see them at work until much later.

✅ How to check: Random spot checks or requiring supervisors to verify employee attendance can help catch these discrepancies.

3. Multiple employees clocking in from the same device

🚩 Red flag: Your digital time-tracking system logs show that multiple employees are clocking in from the same computer, tablet, or IP address, especially for a workplace that doesn’t have shared workstations.

✅ How to check: Many time-tracking tools provide logs of where and how employees clock in. Reviewing this data can reveal if employees are logging in from the same device suspiciously often.

4. Unusual patterns in overtime or hours worked

🚩 Red flag: Some employees consistently log overtime hours, even when the workload doesn’t justify it. This could indicate that they’re having others clock them in and out to inflate their hours.

✅ How to check: Compare logged hours against actual workload and performance. If an employee is consistently reporting extra hours without a clear increase in output, it may be worth investigating.

5. Employees avoiding biometric systems or GPS tracking

🚩 Red flag: If your company uses biometric time clocks (fingerprint, facial recognition) or GPS-based clock-ins, and certain employees regularly complain about system issues or try to bypass them, they might be attempting to keep buddy punching possible.

✅ How to check: If an employee claims the system is "not working" too often, conduct a manual verification of their presence before allowing alternative clock-in methods.

6. Surveillance or security footage doesn’t match time logs

🚩 Red flag: Security cameras show that an employee didn’t arrive until 9:30 AM, but their timesheet says they clocked in at 9:00 AM.

✅ How to check: Conduct occasional random audits by cross-referencing security footage with time-tracking records. This is especially useful in industries where employees clock in at a specific entrance.

Useful Read: How to Create a Clocking In and Out Policy That Works + Free Template

6 Ways to prevent buddy punching

Buddy punching might seem like a small issue, but it can drain thousands from your payroll, disrupt schedules, and reduce overall accountability. The good news? Employers can stop buddy punching before it becomes a serious problem with the right tools and policies.

Here are the most effective ways to prevent buddy punching:

1. Use biometric time clocks (Fingerprint or facial recognition)

❇️ Why it works: Employees can’t fake a fingerprint or face scan, eliminating the possibility of a coworker clocking in for them.

Best for: Businesses with on-site employees who clock in at a central location.

💡How to implement it: Invest in biometric time-tracking systems that require fingerprint or facial recognition before an employee can log their hours.

2. Implement GPS-based or geofencing clock-ins

❇️ Why it works: For remote, hybrid, or field employees, GPS and geofencing ensure they can only clock in from an approved location.

Best for: Companies with remote workers or field-based teams who don’t work from a fixed office.

💡How to implement it: Use workforce management software that tracks clock-ins based on GPS location and prevents clocking in from unauthorised places.

3. Require photo verification during clock-ins

❇️ Why it works: Employees must take a real-time photo to clock in, ensuring they are actually at work.

Best for: Businesses that want an extra layer of verification without requiring fingerprint scanning.

💡 How to implement it: Choose time-tracking software that requires a selfie during clock-ins and integrates with employee records.

4. Conduct random time audits

❇️ Why it works: Employees are less likely to risk buddy punching if they know their clock-ins may be checked against security cameras, manager reports, or location tracking.

Best for: Businesses looking to reinforce accountability without major software investments.

💡How to implement it: Periodically cross-check time logs with security footage, GPS data, or supervisor verification.

5. Set clear disciplinary actions for buddy punching

❇️Why it works: Employees need to understand that buddy punching isn’t just a favor—it’s fraud.

Best for: All businesses, especially those introducing new attendance policies.

💡How to implement it: Define a zero-tolerance policy that outlines:
✔ First offence: Formal warning
✔ Second offense: Payroll deduction or suspension
✔ Third offence: Possible termination

6. Encourage an honest workplace culture

❇️Why it works: Employees are less likely to engage in time theft if they feel valued, heard, and fairly compensated.

Best for: Companies that want to tackle the root causes of buddy punching rather than just punish employees.

💡How to implement it:
✔ Foster open communication—employees should feel safe discussing scheduling issues.
✔ Offer flexible work arrangements if lateness is a recurring issue.
✔ Recognise and reward employees for integrity and accountability.

Monitoring and enforcement

Regular audits and monitoring play a significant role in preventing buddy punching. By routinely checking time clock data and tracking systems, employers can spot inconsistencies or patterns that might indicate buddy punching.

For instance, if an employee's location data does not match their clocked times, it could be a sign of buddy punching. Utilizing biometric data like facial recognition can also help track employee time more accurately, reducing the chances of time theft.

Fair and consistent rule enforcement

Fair enforcement of buddy punching rules is essential. A zero-tolerance policy for buddy punching should be clearly communicated, and all employees should give their written consent to abide by these rules.

This means that if buddy punching occurs, there are predefined and agreed-upon consequences. When enforcing these rules, it's important to be consistent and fair, applying the same standards to all employees. Whether it's an employee buddy punching for a coworker or a higher-up tolerating such actions, the response should be uniform to maintain integrity and fairness in the workplace.

Employers should also ensure they comply with all legal procedures and responsibilities when implementing these measures to prevent any legal issues.

Technological solutions to combat buddy punching

Technology is the most effective way to eliminate buddy punching and ensure accurate time tracking. Below is an overview of the best solutions available, along with their pros and cons to help employers decide which one fits their business needs.

Biometric Time Clocks (Fingerprint, Facial Recognition, or Iris Scanning)

👉How it works: Employees clock in using their fingerprint, facial scan, or iris scan, ensuring that only the authorised individual can log their work hours.

Pros	Cons
Completely eliminates buddy punching	Higher upfront costs for hardware
Provides high accuracy in employee verification	Some employees may have privacy concerns
Works for on-site employees in office or factory settings	Might require occasional recalibration for accuracy
Prevents lost or stolen login credentials	Not ideal for remote or field employees

 

2. GPS and Geofencing Time Tracking

👉How it works: Employees can only clock in if they are physically within an approved work location (e.g., office, construction site, or client site).

Pros	Cons
Ideal for remote and field-based employees	Doesn’t prevent employees from clocking in without actually working
Prevents employees from clocking in from home or unauthorised locations	Battery and location tracking issues may arise on mobile devices
Can integrate with mobile workforce apps	Some employees might disable GPS permissions

 

3. Photo Verification Time Tracking

👉How it works: Employees must take a real-time selfie at clock-in, which is verified against their stored profile picture.

Pros	Cons
Prevents buddy punching without requiring fingerprints or face scans	Employees may try to bypass it with old photos
Works well for remote and hybrid teams	May require manual verification by HR or managers
More affordable than biometric hardware	Employees might find it annoying to take a photo every time

 

4. Unique Login Credentials with Multi-Factor Authentication (MFA)

👉How it works: Employees log in with a unique ID and password, but they must also enter a one-time authentication code sent to their phone or email.

Pros	Cons
Adds an extra layer of security against password sharing	Doesn’t prevent buddy punching if employees share their login and MFA code
Works well for remote workers and digital jobs	Some employees might find MFA inconvenient
No need for additional hardware	Can’t verify actual employee presence at work

 

5. RFID or Smart Card Time Clocks

👉How it works: Employees clock in and out by tapping a smart card or RFID badge on a reader.

Pros	Cons
Fast and easy to use, reducing clock-in delays	Cards can be shared between employees
Cost-effective compared to biometric solutions	Employees may lose or forget their cards
Works well for large teams with fixed office locations	Doesn’t verify who is actually clocking in

 

6. AI-Powered Attendance Software

👉How it works: Uses artificial intelligence to detect suspicious clock-ins, flagging potential buddy punching activities based on work patterns.

Pros	Cons
Automatically detects unusual clock-in behaviours	Still relies on other time-tracking methods for verification
Helps employers spot patterns of time fraud	Requires integration with existing workforce management systems
Reduces manual time audits	High cost for AI-powered software subscriptions

 

Conclusion

Buddy punching is a significant issue that can impact businesses financially and ethically. By understanding what it is and how it occurs, implementing technological solutions like biometric time clocks, GPS tracking, and geofencing, and enforcing effective administrative and policy measures, businesses can significantly reduce the incidence of this practice.

Educating employees about the seriousness of buddy punching and fostering a culture of honesty and accountability are also crucial steps. With the right combination of technology, policy, and education, businesses can protect their interests and maintain a fair and efficient work environment.

Tackling buddy punching with Shiftbase

Buddy punching, a prevalent issue in workforce management, can be effectively addressed using Shiftbase. With its robust employee scheduling feature, Shiftbase ensures that schedules are clear and accessible, reducing the opportunities for buddy punching. Additionally, the time tracking functionality of Shiftbase is invaluable in combating this issue.

It offers precise time recording methods, making it difficult for employees to engage in buddy punching. Furthermore, the software's absence management capabilities help maintain accurate records of employee presence, further deterring any attempts at time fraud.

To see how Shiftbase can enhance your business's approach to preventing buddy punching, sign up for a free 14-day trial here. Experience the difference in maintaining integrity and efficiency in your workforce management with Shiftbase.

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