| Do you know what Buddy Punching is, and how much | | | | associated with this slightly more expensive option. A |
| it can cost your profitability? | | | | fingerprint reader is attached to a time clock, and the |
| "Buddy-punching" is when a co-worker clocks in or out | | | | fingerprint is scanned in order to log the employee in |
| for another employee. With text messaging and the | | | | and out of work. Because of the unique id, fingerprint |
| widespread use of cell phones, it is easy and | | | | punching is the most secure timekeeping device. To |
| convenient for an employee to text a co-worker, "hey, | | | | decide whether this is a good option, you should |
| can you punch in for me, I’m 15 minutes late. say I | | | | calculate your expected labor wasted from |
| went down the hall." | | | | buddy-punching. Also, calculate the labor waste from |
| The cost of missed labor hours can be very high. | | | | inaccurate timekeeping in general. When you |
| Studies have shown that if you have 15 employees | | | | compare the figures, you may find that moving up |
| receiving pay for merely 4 minutes of "wasted" time | | | | from a internet login or swipe clock to a fingerprint |
| per day (untracked breaks, extended lunches, | | | | scanner is a reasonably priced option. You can find a |
| over-approximated punch times, etc) will total 1380 | | | | labor cost calculator for your excess wages spent, by |
| minutes, which is 23 hours, of additional pay per | | | | going to our informational timekeeping area. |
| month. If your average pay rate is $10.00 per hour, | | | | All of the above solutions are also labor savings |
| then you pay an extra $230 each month for labor | | | | devices. They reduce the time management spends |
| not worked. Add in an estimated employer | | | | on calculating payroll and submitting it to a restaurant |
| contribution on FICA and other taxes of 10%, then your | | | | payroll service. A clock that electronically captures |
| annual cost is $3,036. | | | | the hours worked can transmit the data seamlessly to |
| Now, if on top of that each employee is late 20 | | | | the payroll provider. This saves time for a payroll |
| minutes just one time per month, that is another $660 | | | | manager, clerk or the restaurant owner. This is a |
| per year, which brings the total up to $3,696 per | | | | hot topic now for restaurants as every dollar of |
| year. What happens when your wage goes to an | | | | revenue that floats to the bottom line needs to be |
| average of $15 or $25 per hour? You can see the | | | | captured. |
| additional labor costs spinning down the drain. Later | | | | As a business or restaurant owner, you are constantly |
| on in the article you will find a link to calculate YOUR | | | | keeping an eye on the small details that cause dollars |
| wasted labor costs. | | | | to walk out the back door. As much as any |
| What are possible solutions? | | | | business owner can automate controlling the details, |
| Clocking In By Manager or In Manager’s Office: | | | | they should. One of the most difficult aspect some |
| Requires management time to supervise, which is | | | | industries, particularly restaurants and retail, are the long |
| costly. | | | | and difficult hours. Any business that is strained on |
| OnLine Time Clocks: Password | | | | administrative costs and time, or has more projects |
| Protected Good, but passwords can be shared. | | | | than time to complete them, should be considering |
| IP internet restrictions: can prevent employees at | | | | time-saving devices. |
| different locations buddy-punching | | | | You may see a demo of different timekeeping |
| Swipe Cards: User keeps on self Possible to | | | | devices at Pink Payroll's site. |
| share, but difficult on a regular basis | | | | You may see visual images of what the different time |
| Fingerprint Punching: Unique. Cannot be shared | | | | keeping options are, including the fingerprint scanner, on |
| among employees. | | | | the same site.. Getting the system set up and |
| Swipe Cards are another good solution to avoid buddy | | | | coordinated should be a fairly easy project, with the |
| punching. Employees are required to bring their swipe | | | | help of a competent payroll provider. |
| card to work with them, and log in and out with this | | | | After you analyze your labor costs, then set up a |
| card. | | | | budget. If you use QuickBooks®, then your budget |
| Secret Passcodes issued to each employee can also | | | | can be preset, and you can monitor your newly |
| help prevent excess hours logging. Secret passcodes | | | | controlled labor costs to your budget. Using Excel® |
| can be used with an internet based, and inexpensive, | | | | is also a good tool to monitor a budget. Your payroll |
| time keeping solution. With this solution, no extra | | | | service can set parameters in the timekeeping solution |
| equipment is needed. At restaurants, some POS | | | | to watch payroll costs as well. |
| terminals have internet access, so employees can | | | | Speak to your payroll service provider, or contact us |
| log-in to the internettimekeeping device right from their | | | | for more information. You may also read our other |
| work station. | | | | articles on timekeeping and budgeting, as well as look |
| Fingerprint punching an option for companies who have | | | | over the website for more education and calculators. |
| done their homework, and know the cost savings | | | | |