Overtime is often necessary for workplaces with extended operating hours and shift workers. Companies of varying sizes require the overtime structure option. Still, when a company can manage the need for overtime well, it greatly affects its costs, employees’ well-being, and overall success.
While overtime work might be necessary for many companies, it doesn’t mean they are immune to the impact it can have. Here are a few of the pains as a result of overtime:
- Increased costs
- Employee fatigue or burnout
- Decrease in productivity
When managers can effectively understand and manage overtime, they can minimize the negative impact of this staffing necessity while meeting the workload demands.
6 Tips to Manage Employee Overtime
Invest in Time Tracking Software
Time and attendance management software allows managers to track the number of hours worked by each employee. It shows the number of employees present that day, the hours worked, and the overtime hours needed. This software can also generate reports which can help managers create more effective schedules and work distribution to meet the company demands.
Classify Employees Correctly
Employee classification helps you know which employee qualifies for overtime. Evaluate your employees regularly to be sure the classification stays current. This helps avoid confusion and potential labor lawsuits.
Create Effective Schedules
One of the best ways to avoid the everyday need for overtime is to ensure you have enough workers scheduled. Scheduling can get messy and confusing, especially considering everyone’s preferences and needs. One way to help make this easier is to use scheduling software.
Conduct Cross-Training for Employees
Oftentimes, overtime is required when certain employees cannot make their shifts. When workers are adequately trained in a broad scope of work, it can help avoid the need for overtime. A well-trained staff can absorb scheduling hiccups like a sick day, allowing for a more balanced workload.
Another benefit of cross-training employees is how your workers feel more valued when they can contribute more to the company’s success.
Evaluate Employees’ Workloads
Determining your staffing needs and schedules requires evaluating how your employees’ workloads are distributed. If you have a worker who cannot complete their tasks within their allotted shift time, instead of assuming they need to work overtime, you should first evaluate if they have too much work to complete. If this is the case, you can look at how to redistribute workloads across your employees so there’s a greater balance of responsibility.
Establish an Overtime Policy
You may find that overtime is still necessary even with all of these other tips or adjustments. Hopefully, you will find a noticeable improvement, but establishing an overtime policy is essential to manage overtime effectively. This will include rules and guidelines and the process for approving overtime work. Once this policy is created and approved, ensure every employee receives it and has the opportunity to ask any questions so everyone understands how to adhere to it.
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