As an employer of hourly, non-exempt workers how do you know how much overtime is too much?
It is an essential questions to ask and answer for the health of your business as well as your employees. Before you start scheduling your staff for more hours in a day, here are some things that you should be thinking about to make sure your team is effective and efficient.
Does it impact employee health?
Some of your employees may flourish in an environment where overtime is available but others may have a harder time balancing their work and their life. Are you noticing that employees frequently call in sick? There may not actually be a bug going around, the problem could be entirely emotional. If overtime is impacting the health of your trusted employees it may be time to consider other solutions.
Does it impact your bottom line?
There is also the financial impact of overtime. When a non-exempt employee works over 40 hours a week each additional hour is to be paid at time and half. So an employee making $10 an hour will earn $15 for each hour over 40. Can the work be done within 40 hours? If so, is the overtime impacting your bottom line? You may need to implement new management strategies to make sure goals are met on time.
Do you have high turnover?
High overtime environments also tend to be plagued with high turnover. Not only is the overtime costing your company the additional hourly pay and taxes associated with it, but also the cost of replacing employees who have quit and training the new staff to keep up with production. This also leads to lower production quality which, in turn, requires more overtime. Redesigning your work environment could change this in a positive way.
When do you get help?
Overtime doesn’t have to be your only option to ensure that production is efficient in your business. Hiring temporary help as needed is a great way to ensure that your full time staff remains healthy and happy while you manage your budget. The staffing agency will provide you with qualified individuals at a predetermined hourly rate that covers the employees pay as well as administrative fees. Often this is less than the cost of time and half plus additional taxes.
Who is Anserteam Workforce Solutions?
Anserteam is the only WBENC-Certified alliance of staffing companies serving all of North America. Combining boutique-quality service, entrepreneurial flexibility and state-of-the-art web-based technology, we deliver a seamless solution for enterprise-wide workforce management. Looking for additional tips and support? Read our related content or contact our team today.