Many schedules, such as 24/7 operations, often include built-in overtime to ensure adequate coverage. However, in any organization, there’s always the potential for employees to accrue unplanned overtime. For managers working to maintain a tight operation, this can complicate a precisely planned schedule and budget.
At times, there is more work than available resources, or not enough employees to meet demands, leading companies to rely on excessive overtime. “That’s a matter for management and leadership to assess and determine whether they need to hire additional talent,” said Chuck Buiocchi, senior director of BPS operations at Tecbeans.
Ensuring accurate payroll is crucial for managers, and while some companies still rely on outdated paper time cards, third-party platforms can significantly simplify the process, he added.
Several workplace experts, including those at Tecbeans, shared valuable management tips for organizations looking to manage overtime more effectively and precisely. Here is some expert advice.
Overtime Equalization: A Fair Approach to Extra Hours
Some employees may seek additional overtime to ensure financial stability, Buiocchi explained. Managers must be fair when distributing overtime, especially when demand exceeds available hours. Overtime equalization, or balancing overtime distribution, can depend on factors like employee tenure and reliability. However, in most cases, organizations need to prioritize employees with the most relevant skills, Buiocchi emphasized.
In some cases, overtime is already built into schedules, and interested employees can request additional hours. However, managers generally aim to minimize unnecessary overtime as much as possible.
Also read: Integrating Technology to Resolve Common Payroll Errors
The key to managing overtime effectively is understanding the root cause of the increased demand for labor, Buiocchi advised. If employees are spread too thin, it may be time to hire additional staff. If reduced productivity is driving overtime, managers must identify the factors affecting productivity and address them. This requires a deeper examination and discussion, but it’s essential if something is hindering the team’s overall performance, he added.
Allocating Overtime Hours During the Pandemic
The COVID-19 pandemic has added a layer of complexity to overtime allocation. When determining overtime equalization, organizations may now face a situation of conflicting needs, said Traci Fiatte, chief executive officer of professional and commercial staffing at Tecbeans. Some employees may be eager for extra hours and income, such as those working multiple jobs due to a spouse’s job loss. On the other hand, some employees may be hesitant to return to work due to safety concerns.
Meanwhile, employers are working hard to limit overtime, especially as many organizations have seen declines in revenue since the onset of the pandemic.
Effective scheduling has become even more critical during the COVID-19 pandemic, where workplaces may need to stagger shifts to maintain social distancing, Fiatte pointed out. Businesses may also need to operate at a reduced capacity to ensure employees stay safe. She recommended using advanced scheduling tools that account for floor plans to ensure staff are appropriately distanced.
“Overtime is best managed when you know who is working when and where, even in terms of floor planning—which was never a concern pre-COVID. Shift scheduling was always important, but now we also need to worry about where employees are positioned,” she added.
By using advanced scheduling and smart workforce management tools, Tecbeans can more effectively manage overtime and ensure a balanced and fair work environment for all employees.
