By Rick Bell
May. 14, 2020
Scheduling employees is difficult. Creating a schedule that factors in overtime can make the task even more time consuming.
For companies that run in shifts or have round-the-clock operations, overtime is often a necessity. Poorly managed overtime can result in unnecessary cost overruns, cause mistakes on the production line and result in fatigue-related accidents.
Don’t work overtime to figure out your employees’ overtime. There are digital solutions that can simplify scheduling, address overtime requests and streamline the payroll process. Utilizing technology to develop a sensible overtime policy is essential to streamline payroll and will result in a safer, more productive workforce.
Why institute an overtime policy?
According to the Department of Labor, employees covered by the Fair Labor Standards Act must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay. An effective overtime policy helps employers sort through daily and weekly overtime calculations to remain compliant with state and federal regulations.
Scheduling overtime is often done to meet increased deadlines. Scheduling with a hair-on-fire approach — a practice followed by way too many employers — doesn’t necessarily equal optimal productivity.
Inefficient shift schedules lead to excessive and ineffective overtime levels. Many operations with fluctuating work demands have outdated scheduling systems that leave some employees idle and others too busy. Scheduling solutions can solve that headache.
Consider how many employees are needed to work overtime without affecting your team’s mental and physical health. Evenly rotating overtime schedules also can cut the animosity between employees and encourage a more supportive environment.
How technology helps
Technology plays a huge role today in helping organizations manage and reduce overtime expenses and meeting rigorous compliance standards. If you’re still using manual timesheets, it’s time to upgrade to an automated timekeeping system.
Automating overtime management provides streamlined processing, an impartial implementation of policies, fewer errors and more accurate record keeping. Time keeping and employee scheduling software significantly reduces the workload for supervisors while balancing employee requests and providing significant savings with the elimination of unneeded overtime.
Many organizations already have access to all the data they need to predict overtime costs in their payroll and time and attendance software. However, they don’t utilize it to its full effectiveness and wait until the end of a pay period to begin a deep-dive analysis into employee hours.
Instead, be proactive! Incorporate real-time analytics to track hours as the week unfolds to help identify employees who are on track to work overtime and allow for changes in staffing to minimize or eliminate these situations. Extract the data and examine it in a meaningful, practical way.
Perhaps most importantly, your compensation data can help avoid costly compliance violations, overtime lawsuits and steep fines.
Delicate balance between work and life
Resources are thin. Too much overtime — or not enough overtime — can cause stress, fatigue and burnout. Consider your employees’ health, your workplace culture and your business’ bottom line when scheduling overtime.
Workforce.com’s software simplifies operations and untangles complex overtime regulations. It also gives the entire organization the confidence that employees will be paid correctly.
We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline. Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps.
ComplianceExempt vs. non-exempt employees: knowing the difference
Summary Employees are exempt from FLSA requirements when they meet specific exemption criteria based on...
Department of Labor, exempt employees, Misclassification, non-exempt employees
ComplianceCalifornia fast food workers bill: why it’s more than meets the eye and how to prepare
Summary: California signs bill establishing a “fast food council” that has the power to raise the indus...
ComplianceMinimum Wage by State in 2022 – All You Need to Know
Summary The federal minimum wage rate is $7.25, but the rate is higher in 30 states, along with Washing...
federal law, minimum wage, pay rates, state law, wage law compliance