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Biometric time and attendance system using contactless palm recognition to prevent buddy punching
Article

Buddy Punching: How It Costs Businesses Money (and How Biometrics Stop It)

Buddy punching quietly costs businesses thousands each year. Learn what it is, how it happens, and how biometric time & attendance systems prevent it securely.

Table Of Contents

Introduction

Buddy punching is one of the most common — and most overlooked — forms of time theft in workplaces.

It often happens quietly, without bad intent, and without management realising how much it adds up over time. But across weeks, months, and years, buddy punching can cost businesses thousands of dollars per employee.

In this article, we’ll explain:

  • What buddy punching is

  • Why it happens

  • How it affects payroll and productivity

  • How biometric time & attendance systems eliminate it

  • And why modern biometric systems are safe, secure, and privacy-respecting

What Is Buddy Punching?

Buddy punching occurs when one employee clocks in or out on behalf of another employee.

Common examples include:

  • Clocking in a colleague who is running late
  • Clocking out a friend who left early
  • Using a shared PIN or access card
  • Swapping cards between staff

In traditional time clock systems — cards, PINs, swipe tags — there is no reliable way to confirm who actually performed the clock action.

Why Buddy Punching Happens

In most cases, buddy punching isn’t driven by fraud — it’s driven by convenience.

Typical reasons include:

  • “I’m just helping them out this once”

  • Staff arriving late due to traffic or childcare

  • Weak enforcement or unclear policies

  • Manual or outdated systems that are easy to bypass

  • Shared trust environments where accountability is low

The problem isn’t people — it’s the system allowing it.

How Much Money Does Buddy Punching Cost?

Even small amounts of lost time add up quickly.

Let’s look at a simple example:

minutes per shift

days a week

working weeks per year
That’s 40 hours per employee per year — the equivalent of a full working week paid for but not worked.

Now multiply that across:

  • Multiple employees

  • Overtime rates

  • Payroll taxes and compliance costs

For medium and large businesses, buddy punching can quietly drain tens of thousands of dollars annually.

Why Traditional Time Clocks Fail

Older time & attendance systems rely on:

  • PIN codes

  • Swipe cards

  • RFID tags

  • Manual sign-in sheets

All of these can be:

  • Shared

  • Lost

  • Borrowed

  • Copied

  • Misused

The system records a clock event, but it does not verify identity.

That’s thecore issue.

How Biometrics Eliminate Buddy Punching

Biometric time & attendance systems verify the person, not the token.

Instead of asking:

“Do you have the right card or PIN?”

They ask:

“Are you physically present, right now?”

Common biometric methods include:
Facial recognition
Fingerprint recognition
Palm recognition

Because biometric traits are unique to each person, buddy punching becomes impossible.

You cannot:

  • Clock in for someone else

  • Share credentials

  • Use a colleague’s identity

If you’re not there — you can’t clock in.

Addressing the Privacy Question (The Big One)

This is the question we hear most often:

“Are you storing employee photos or personal data?”

The short answer: No — not in the way people think.

What Our Biometric Systems Do NOT Do

Let’s clear this up properly.

Our systems:

  • Do not store reusable photos
  • Do not keep face images like a photo album
  • Do not link to Police, Immigration, or government databases
  • Do not check traffic fines, criminal records, or anything like that (sorry!)
No photos are reused.
No images are shared.
No external systems are queried.

Your staff aren’t being “watched” or profiled.

How Biometric Data Is Actually Stored

Instead of photos, modern biometric systems store:

  • Encrypted mathematical templates

  • These templates cannot be converted back into images

  • They are useless outside the system

  • They are stored locally or securely on your own infrastructure

Think of it like a hashed password, not a photo.

Even if someone accessed the data, it cannot be used for anything else.

Why Biometrics Are Safer Than Cards or PINs

From a security and compliance perspective, biometrics are actually more privacy-friendly than traditional methods.

Cards and PINs:

  • Can be shared

  • Can be stolen

  • Can be used without consent

Biometrics:

  • Require physical presence

  • Cannot be transferred

  • Cannot be forgotten

  • Cannot be misused by someone else

That’s why biometrics are widely used in:
  • Corporate offices
  • Warehouses
  • Construction sites
  • Healthcare
  • Manufacturing
  • Education
  • Government facilities

A Fairer System for Everyone

One often-overlooked benefit of biometric attendance is fairness.

When buddy punching exists:

  • Honest staff feel punished

  • Trust breaks down

  • Resentment builds quietly

Biometrics create:

  • Equal rules for everyone

  • Clear accountability

  • Fewer disputes around timesheets

  • Cleaner payroll processing

It removes the awkward conversations — the system simply enforces attendance fairly.

Is Biometric Time & Attendance Legal in New Zealand?

Yes — when implemented correctly.

In New Zealand:

  • Employers must be transparent

  • Data must be used only for attendance purposes

  • Systems must be secure

  • Employees must be informed

Our solutions are designed to align with:

  • NZ Privacy Act principles

  • Best-practice data minimisation

  • Purpose-limited usage

We help businesses implement systems properly and responsibly.

Final Thoughts

Buddy punching isn’t about bad employees.

It’s about outdated systems that make time theft easy and invisible.

Biometric time & attendance:

  • Eliminates buddy punching entirely

  • Improves payroll accuracy

  • Reduces disputes

  • Saves money

  • Protects privacy when implemented correctly

If your business relies on accurate time tracking, biometrics aren’t “overkill” — they’re simply modern and sensible.

FAQs

Buddy punching is when one employee clocks in or out on behalf of another, resulting in inaccurate time records.

It’s extremely common in workplaces using cards, PINs, or manual systems — often without management noticing.

No. They store encrypted mathematical templates, not reusable images.

No. Our systems are completely standalone and used only for attendance and access control.

Yes, when implemented transparently and in line with privacy regulations.

Smart Security & Automation. Local Support You Can Trust.

Explore NZTeco’s full range of ZKTeco-powered solutions — from biometric access and turnstiles to POS, smart locks, and AI-driven security. Designed for New Zealand businesses and backed by global innovation with local expertise.

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About the author:

Reynardt Badenhorst

I'm the Managing Director of NZTeco, leading our mission to bring advanced security and access control systems to New Zealand. I specialize in biometric technologies, surveillance systems, and robust security setups designed to keep people, properties, and data secure. I’m passionate about delivering reliable, tech-driven solutions that solve real-world problems. My focus is on efficiency, innovation, and maintaining a customer-first approach in every project we undertake.

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