As a result, levels of productivity will be negatively skewed and this could create other indirect costs for the company. But with no change in outcome, the productivity levels will consequently start to decrease. As the number of working hours clocked increases, an employer expects the outcome to also increase. Through buddy punching, the amount of work generated will be much less than what is expected. The productivity of an employee is calculated by measuring the amount of work generated divided by the number of hours worked within a time period. employers more than $373 million every year. Bureau of Labor Statistics suggests that a simple payroll loophole could cost U.S. As a result, if each employee attempts buddy punching or any other time theft, overtime and other payroll costs significantly increase. With time theft, employees demand pay for the hours they clocked in for, rather than what they’ve actually worked. They are often tasked with making sure overtime doesn’t happen. Overtime pay due to inflated working hours from buddy punching creates trouble for the HR department. The unnecessary increase in payroll costs often takes place when a company is paying for overtime. The costs associated with buddy punching can be divided into 2 categories: Direct and Indirect Costs. The impact of wage theft through buddy punching may be felt in many different areas of the company. Impact of Buddy Punchingīuddy punching is a form of time and wage theft that is common among hourly workers.
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