6 Tips to Effectively Manage Overtime in Your Business

Both small and large companies have to deal with the issue of overtime as it is part of their ongoing expenses. Overtimes are common in workplaces and includes shifts at work and extended operations hours. Overtime often leads to increased costs for the company, fatigue, and reduced productivity for the employee.Understanding overtime means that you have to keep it under control. It helps in managing a higher workload without increasing staffing levels. When used properly, it can help in meeting workload demands thus reducing cost and increasing employee productivity.

1. Invest in a time tracking software

Time and attendance management software allows you to track the number of hours worked for each employee. Such software allows employees to clock in through the bio-metric devices using their fingerprints. This shows the number of employees present that day and it’s easy to calculate overtime if there are any. This software also generates reports which help HR see the total number of hours worked including overtime.

2. Effective employee classification

As an employer its important to classify your employees correctly to avoid confusion and other labour lawsuits. Employee classification helps the employer know which employee qualifies for overtime. Often evaluate your employees regularly and consult a lawyer to guide you if you need to take any legal action on your employees.

3. Effective scheduling management

It's important to schedule enough employees on a particular shift to ensure all necessary workload is completed on time. Scheduling software can help you set targets to match staff requirement levels.

4. Conduct cross-training

In most cases, overtime expenses cases exist because there are no individuals to take on a task if one employee is not there. It's important to train your employees to handle more than one job to avoid unnecessary overtime cases. It helps to distribute the workload among employees even when there are emergencies. It also helps boost employee's morale and makes them feel that there are actively contributing to the success of the company.

5. Focus on a balanced workload

This often occurs when employees’ workload is overwhelming. Analyze all the existing workloads of all your employees and ensure its evenly distributed. You should ensure that employees finish their tasks on or before the end of their shifts. If not, their workload should be reassessed.

6. Create an overtime policy

If you find that there is excessive overtime even after addressing workload issues then a new policy is the next great option. It should include the rules and guidelines regarding overtime approvals. You can opt to have a memo that outlines the new overtime policy to ensure everyone understands what they are expected to do.

Why manage overtime?

Overtime management is important for businesses today. Once you have an overtime management policy in place you can communicate it to your employees. This makes employees feel motivated to work since they know what to work on and how to deliver great results.

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