Our partner Turner Industries is the first principal contractor to implement our new Labor Hours solution in the US. Understanding the importance of ending assumption-based decision making and inaccuracies in payroll, Turner Industries has added to its workforce management approach by using Labor Hours on its three-year, $1.5bn petrochemical project currently being delivered in Pasadena, Texas.
‘Buddy punching’, a term which describes the practice involving workers clocking into and out of work for each other, is a major problem in the US construction industry. One of the negative consequences is the inaccurate payment of jobsite workers, which Turner Industries has decided to address.
A study by the American Payroll Association revealed some shocking statistics on the issue. This includes more than 75% of companies losing money from the practice, buddy punching accounting for approximately 2.2% of gross payrolls, and workers gaining roughly 4.5 hours of time per week - the equivalent of 6 weeks vacation.
Of those surveyed, the 2.2% of gross payrolls only refers to those people that admitted the practice, meaning the percentage will likely be higher. While this study included multiple industries, it is widely accepted that the construction and industrial industries are more susceptible to this practice in comparison with other environments such as offices.
Thankfully, there is a solution. By combining our biometric access control technology with modular turnstiles, accurate time and attendance data can be captured. Our Labor Hours system can then ensure accurate, verified, and streamlined tracking of worker hours with seamless payroll integration – reducing errors and duplication.