For many employers, the thought of overtime sounds like increased costs. But it doesn’t have to be that way. With proper planning and execution, overtime is a great tool that offers stability for your business. It also gives your company room to increase sales and grow.
Planning Gives You Stability
A common misconception is that overtime eats into your budget and reduces profits. While that can happen, planning goes a long way to make sure overtime is used effectively while improving your profit margins. Overtime also lets you tackle more projects to reduce the impact of overhead costs.
As you think about previous years, consider how much overtime was used and how often. Take these figures into account as you budget for next season. Overtime should also be factored into each client’s labor costs and hours.
This helps you manage risks from unexpected changes that come up during projects. Always be open to feedback from staff and encourage them to share their ideas for process improvement. Also, use this time to review your overtime policies. A few questions to ask are:
- Do we require mandatory overtime?
- Are we setting clear expectations with new and experienced staff regarding our overtime needs and policies?
- Do our policies have any gaps that employees could abuse?
- How are we assigning overtime?
- Do we offer voluntary overtime?
- Are we tracking our overtime use?
Finally, keep up to date on overtime regulations in your local area and the industry.
An effective plan also considers the stability of your labor force. Overtime can seem more expensive up front, but it’s often cheaper than hiring more staff to cover the extra hours. Adding even more staff requires more time for onboarding and training, adding extra work to your peak season.
Another challenge with extra staff is the ebb and flow of the workload, which can lead them to pursue other roles if you don’t have long-term work for them.
Communication Is Key
During hiring, set clear expectations for employees to help them know what to expect during the season. Include that information in your employee handbook as well. This conversation applies to expected hours and time off during that period. Some employers enact vacation freezes to keep their workforce intact when extra work is needed.
For example, employees cannot take paid time off from May 1 – June 15. This lets you dive into spring projects and install summer plant displays. Be clear about those boundaries, but also open to adjusting.
Find the Right Balance
Moderation is also key, as studies show that employee output rises at a decreasing rate after 49 hours of work. If you start noticing more absenteeism or unsafe conduct, those could be symptoms of burnout.
In your daily meetings, make staff aware of any extra work coming up in the future. If your overtime needs are limited, consider offering voluntary overtime to anyone who signs up. Don’t be afraid to require overtime at certain times, as many employees will gladly work extra hours. The key is being upfront with your staff about the workload.
Depending on the daily schedule, you can limit weekend work. Some companies offer a 4/10 work schedule, allowing employees to come in on their day off. If you have a long weekend work schedule, consider rotating staff to reduce burnout.
Even the best planning is prone to unexpected changes, so have your employees ready by cross-training on tasks. When someone calls in sick, you can plug in someone else to complete that task and keep the project moving. It also gives your employees peace of mind that someone can cover for them.
Another benefit of cross-training is the ability to study the strengths and weaknesses of each employee. This can help your efforts to develop existing staff and have less turnover.
As the season progresses, keep track of those overtime hours. A clear record will help with future planning and help you see if anyone is taking advantage of the system. An example is someone clocking in early or later to add a few minutes of overtime.
If you’re concerned about excessive overtime, be transparent with your staff to keep them accountable and reduce unnecessary costs.
