Labor Hours roll out begins in the US
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.
"General contractors are very aware of the issue with buddy punching that has been impacting the US construction industry for too long. "
Nick Wilkinson
International Business Director, Infobric Limited
Quickly understanding the advantages of our solution, the contractor has realized that the potential savings are too compelling to turn down.
We believe principal contractors may be paying up to 20% more for agency labor because of the over-allocation of basic and overtime hours, and the huge administrative burden of collating timesheets and managing payroll. With this in mind, we are very proud to be working with Turner Industries to address the issue and help the US construction industry to increase profitability and productivity.
Turner Industries has enabled the use of Labor Hours by deploying only four modular turnstiles and two face minis on its site in Pasadena, made possible with the support from our hardware partner Portable Solutions Group and United Rentals.
"MSite immediately put forward its face recognition technology as a way to guarantee that everyone on our jobsite is who they say they are. We now know who is on site and not just whose card is on site."
Tim Roussel
Project Manager, Turner Industries
Our goal from the outset was to ensure that we operate a high secure jobsite. To that end, the brief was a simple one, we wanted turnstile access control to ensure that only authorized personnel with an in-date site orientation could gain access to our jobsite. The system needed to work for our directly employed and specialist contractor workforce, whilst also supporting accurate payments to the supply chain for work on site too.
We now have real confidence on the data produced by MSite, be it roll call time and attendance or even the ratio of supervision on site at any time. All of this data is available in dashboards and reports across my management teams’ laptops and mobile devices.
Put simply, MSite’s technology combined with Portable Solutions Group’s modular turnstiles from United Rentals is a game changer for security, speed of access, and reliable data to support the operation of jobsites.
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