Tag Archives: Overtime

5 things H.R. needs to know about shiftwork

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Let’s start with this – My intent with this post is NOT to tell H.R. how to do their job. Rather, I want to round up many of the issues surrounding shiftwork in an effort to put the spotlight on those I have found to be most important to H.R. professionals.

So, let’s get to the list…

#1: No one is going to come to H.R. to tell you how much they like the schedule they are currently working.  When people are unhappy, they complain. When they are happy, they are quiet.  This means that people coming to your office to complain about the schedule will ALWAYS out number those that come by to tell you they love it.  Just be aware that listening to those that come to you is not a representative sampling of your workforce.

#2:  What the average shiftwork wants or what a nearby plant is doing has little bearing on what you should be doing with your schedule.  After nearly 30 years in the business, I can tell you exactly what the average shiftworker likes and doesn’t like; and yet…I have never met an average shiftworker.  Everyone is unique.  In the same way, your business is unique from the company down the street.  What works for one company is not necessarily what will work best for you; even if you are in the same industry.

#3: As a service organization, H.R. works for several different interests including: planning, production, maintenance, quality, administration and leadership.  All of these have different functions and thus often require different shiftwork structures and outcomes.  Serving several masters is no easy task.  All need to be heard.  All need to be tended to.  Remember, if H.R. was easy, no one would need you.

#4: Recruiting and retention of skilled employees is always affected by the shift schedule being used.  Supervision, absenteeism, vacancy coverage and overtime will also be impacted.

#5: Process is everything when it comes to changing a shift schedule.  How you communicate plans and ideas as well as how you solicit input from affected parties will determine the ultimate level of success you experience with your change.

Jim Dillingham, Partner

(415) 265-1621

Jim@shift-work.com

Yes, it’s personal

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I’m often asked “Jim, what is the single most important thing we, as an organization, can do to better facilitate a schedule change.”

My answer is always the same – “Find a way to see the event through the eyes of a shiftworker.”  In other words, walk that mile in their shoes.

Companies don’t change schedules for the fun of it.  They know it has the potential to disrupt everything from planning to maintenance to hiring and training.  It’s a big undertaking and not to be taken likely.

When companies make the decision to change, they always approach the workforce with the case for change.  This “case” nearly always boils down to “We are doing this because of the needs of the business.”

While this is a great reason for change, it does not do a lot to calm the workforce’s concerns.

Here is why…

To the company, a shift schedule tells people when to be at work.  To a shiftworker, a shift schedule tells them when they DON’T have to be at work.

In other words, it tells them when they can live the rest of their lives; that part of their life not at work but instead with their families or hobbies or whatever they may be passionate about.

Yes, they will understand “the needs of the business” but its also important to understand their perspective.

When you touch a schedule, even slightly, you are touching their personal lives.  Change a start time by 15 minutes and watch the fireworks as employees can no longer pick up their kids or attend school or catch the early bus home.

You may say “We are changing the schedule to meet the needs of the business” but they are hearing “We are going to change your family life to facilitate the needs of the business.”

There is a difference.

Recognizing this difference will change the way you approach the project.  The right approach will change the outcome for the better.

Jim Dillingham

Partner, Shiftwork Solutions LLC

Jim@shift-work.com

(415) 265-1621

 

5 Signs that you may need a new shift schedule

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Shift schedules rarely fail overnight.  Typically, there are plenty of warning signs; signs that tell you to take action before it’s too late.  Here are the 5 biggest warning signs.

#1: You have idle equipment while still not producing enough to meet customer demands.  There can be a lot of reasons for this; nearly all of which point to a schedule that does not have the right people in the right place at the right time.  Product flow, staffing, maintenance and production order variability can all be addressed with the right shiftwork structure.

#2: Maintenance is blaming equipment availability for a downward trend in equipment up-time.  You can’t fix something while it’s running.  The result is often and solution like “We’ll wait until the weekend to fix it.”  This is fine until you find that leaving too much to the weekend ends up with an overly fatigued maintenance group with not enough hours on the weekend to fix everything.  Scheduling equipment, like scheduling people, can improve maintenance accomplishment while still getting the production hours you need.

#3: Absenteeism is going up as overtime starts to wear down your workforce.  As overtime goes up, two things will happen.  First of all, your workforce will start to get tired.  Secondly, they will notice that they are now making a lot of money and can afford to take time off.  This is a “death spiral”  situation in that it is self-perpetuating and will only get worse.  Staffing will impact overtime but to do so effectively, you must have a shiftwork structure to support the newly resized workforce.

#4: Local competition for labor is causing problems with recruitment and retention.  I can’t tell you how many times I’ve heard something like “Amazon just opened a mega-facility down the street and is hiring all of our employees away from us.”  The right schedule, one that is a good fit for your workforce as well as your business can help with this.  If wages are a concern, look for ways to get overtime to that 20% of your workforce that wants all they can get.  Overtime costs your company about the same as fully loaded straight time.  This means when you pay overtime, your employees make 50% more but your cost per hour is virtually unaffected.  Don’t lose your workforce because of wage pressures or quality of life issues.  The right shiftwork structure can help.

#5: Productivity metrics are dropping as equipment runtime-hours are on the rise.  If you are running more an more hours with the same old schedule, then you are probably seeing an increase in overtime.  While overtime is not a bad idea in many instances, it can eventually lead to worker fatigue.  This is especially true if you spread it evenly across all shifts.  Remember, not all employees want the same amount of overtime.  As fatigue goes up, so will accidents, quality issues and absenteeism.  You make find, for example, that running 6 days a week yields more output than running 5 days.  However, if you didn’t change schedules, a 20% increase in runtime will yield significantly less than a 20% increase in output.

In summary, don’t underestimate the impact of having the right shiftwork structure.  Fixing this issue is often the most expeditious and cost effective way of improving your overall operations.

For more information, call me, Jim Dillingham, at (415) 265-1621 or drop me a line at Jim@shift-work.com

The impact of overtime on salaried personnel

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Since president Obama signed (28 May 2016) legislation raising the minimum bar for salaried people to qualify for overtime, I have been getting two questions: (1) What does this mean and (2) How does it affect my shiftwork operation.

The answer to the first if fairly straight forward.  If you have a salaried person at your facility that is being paid less than $47, 476 a year, then you must pay overtime at the rate of time and one-half for all hours worked in excess of 40 in a pay week.

The second is less clear.  My hope is that a few observations on my part will help you to see the impact for your operation.

First of all, I will be speaking to the roll of direct supervision of hourly employees in a shiftwork operation.  This is often an industrial setting but need not be so.

Supervisors are typically salaried.  Sometimes they are home-grown in that they come from the existing hourly workforce.  Sometimes they are brought in from the outside.

This new overtime rule means that if you are paying your supervisors less than about $26 an hour, then you must pay them overtime when they work over 40 hours in a week.

Let’s be clear, someone coming to work for a wage or any other benefit represents and agreement between two parties: (1) the employer and (2) the employee.

The employer says “I will compensate you this way if you work here.”  The employee says “I will work there for this compensation.”

To this extent, the law may be self correcting.  Employers faced with paying overtime may offer a lower starting salary while employees, may accept a lower starting salary knowing that overtime will be added to it.

Now, “compensation” can mean a lot of things.  Historically, being promoted to a supervision role means that you get more money per hour.  However, this does not always correspond to “more money overall.”  Frequently, supervisors get a higher hourly rate (paid as salary) but then lose out on what may have been a significant amount of income from overtime; overtime they are no longer eligible for.  There is no shortage of people that have turned down salaried roles because they didn’t want the pay cut.

Management often argues, correctly, that the compensation for supervision goes beyond wages.  Salaried positions often make “decision makers” out of “decision takers.”  For many, the draw of a position of responsibility can be huge.

Salaried positions sometime pay overtime-type wages if you come in on a day off while not paying it if you work a longer than scheduled day.

Salaried positions sometimes offer compensatory time off if you work extra hours.

Managers hire a salaried person and tell them “This amount of salary includes compensation for the expected extra hours you will work.”  In other words, they are saying that they are building the overtime wages into the offered salary.

Maybe there is a company car or free lunches or better vacation.

Probably one of the biggest reasons someone will take on a salaried position is that it represents a stepping stone to something even bigger; perhaps a promotion to the level of really big dollars.

In the end, it still comes down to the agreement.  Compensation = Filled Position.

If you are paying your supervisor less than $47,476 per year,  then I have to say, “You get what you pay for.”  I know that can be harsh in certain markets that only provide the thinnest of margins.  Still, good leaders are hard to come by.  There is competition for them and if you don’t pay them enough, they will leave for greener pastures.

Of all the companies I have worked with over the last 28 years, probably none of them paid less than the $47K bar set for overtime wages (in today’s dollars).  Discussion about this law states that it protects 4.2 million salaried employees.  In truth, they may be protected but are probably not affected.

In short, the impact of this law is far more political than practical.  Chances are great that you will be unaffected in some major way.

6-day schedules (part 4)

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This is the fourth and final post in a series of four posts regarding 6-day schedules.  Here are the links to 6-day schedules (part 1), 6-day  schedules (part 2) and 6-day schedules (part 3).

In this post, we will look at two extremes when it comes to covering 6 days.  One uses extra staffing to cover 6 days with 40-hour workweeks.  The other uses traditional staffing for a 48-hour workweek but has a few 12-hour shifts to give an occasional weekend off.

First, lets consider a schedule that covers 6 days with 40-hour work weeks.  This is more complicated than you might think.  Why?  Well, there are 144 hours in a 6-day period.  If a crew is worth 40 hours, then you would need 3.6 crews to provide coverage (144/40=3.6).

This is accomplished by having each of your three 8-hour crews being 20% larger than the number of people you expect to show up each day.  In this way, one out of every 6 people can be off on any given day (except Sunday when everyone is off).

Here is what the schedule looks like:

6 day 40 hourYou will notice that to have 5 people show up on any given day, you need to have 6 people assigned with one of those 6 being off on that day.

First, the good news about this schedule.  Everyone gets Sunday off plus one other day that week.  This should increase alertness (compared to the alternative of only getting Sunday off and no others during the week).  That’s about it as far as the good news goes.

There are several problems:

  • Supervisors cannot match their crews unless they work all 6 days.  If they also take a day off, then provisions must be made to cover for their open position.
  • People like two days off but generally prefer then to be two days off together.  Most shift workers will place a low value on having, for example, Tuesday off as their second day off that week.
  • The staffing requirement must be a multiple of 5.  This schedule works well if you need 15 or 375 people, but it will not work if you need 7 or 18 people.
  • Night shift alertness will suffer as night shift people lose some of their “night time adjustment” during their day off.
  • Cross training is required since every combination of 5 out of 6 must represent all of the skills needed to get the job done.
  • Twice every 6 weeks there are “split workdays”.  This is where they are off the day(s) before and the day(s) after a single day of work.  Shift workers will quickly recognize that these solitary days are good days to feel…maybe a little too sick to come into work.

Companies ofter go to this type of schedule in an attempt to avoid the “high cost” of overtime; failing to realize that overtime and straight time are generally “cost equal”.

Onward…

This next schedule is an attempt to keep things simple and yet, still give the employees a full weekend off once every three weeks.  “Keeping things simple” basically says, work everyone for 6 days in a row, all 8-hour shifts.  The workforce might not like this.  Alertness, safety and productivity will suffer; but its “simple.”

Now to get a full weekend off with the smallest departure from “simple” you must work 12-hour shifts on two out of every three weekends.  The third weekend is off.

Here is the schedule:

6 day 12 hour weekendsThis schedule is only popular among those that place a very high value on full weekends off.  Working 6 days in a row is hard enough.  This schedule not only calls for that, but it makes one of those 6 days, a 12-hour day.  The result is a full weekend off once every three weeks.

This is probably not a sustainable schedule for more work places.  However, in the short run, it may be just what you need.

That’s it for 6-days schedules.  I may return to this topic again sometime.  There is certainly a lot more to say about this subject.  If you have any questions, please give me a call.  My number is (415) 265-1621.  Ask for Jim Dillingham.

Scheduling Your Maintenance Crew on a 24/7 Operation

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Before a company goes to 24/7 operations, they typically reserve the weekend for much of their maintenance work – run the equipment on the weekdays then shut down and fix everything on the weekends.

When a plant shifts to 24/7 operations, the first thought of maintenance people is “Where do we go now?”  The weekend, their one time to do maintenance, is being taken up by production.   Is this the end of preventative maintenance?  Will maintenance now be restricted to small windows of opportunity such as line changeovers?  And the biggest question is “How will we schedule maintenance people when we no longer know when we will have access to equipment?”

The answers to these questions are much simpler than most people anticipate.

To get to these answers we first need to break down maintenance into its three main components: (1) Corrective Maintenance, (2) Preventative Maintenance and (3) Project work.  I will cover all three of these, and then use an example at the end.

Corrective Maintenance

On a 24/7 operation, everything is running all of the time.  While there are plenty of exceptions to this (change-overs, sanitation etc.) we’ll consider production to be spread uniformly across all hours for this discussion.

Since corrective maintenance is not “scheduled”, it can be nearly impossible to predict with any accuracy.  Therefore, we should consider an “event” requiring corrective maintenance to be random.  That is to say, it is equally likely to occur at any time during the week.  Under this type of condition, it is best to spread your resources around equally.  From a corrective maintenance perspective, it makes no sense to staff differently on Saturday afternoons than on Wednesday nights.

When it comes to staffing levels, you will have to take into account things such as: (1) the likelihood of something breaking down, (2) the opportunity cost of delaying a repair (3) the cost of overstaffing when those people could be used more effectively elsewhere and (4) the availability of additional resources through callouts.  The mistake most people make is to overstaff the corrective maintenance crews.  They need to realize that they will never have enough people to always ensure there are enough people to handle every possible contingency.  It is better to have an effective plan for augmenting your crew in an emergency.

Preventative Maintenance

This is actually easier to do on a 24/7 schedule that on a 5-day schedule.  On a 5-day schedule, you are essentially committed to “pit stop” maintenance.  You only have a very little window to fix everything so you throw all of your resources at it during that time.  Hopefully, you get enough things fixed so the plant can run well the next week.

On a 24/7 schedule, you still have maintenance to do, but you no longer have to do it all on the weekend.  Now you can spread it out during the week.  As a maintenance person, you’d rather do preventative maintenance during the day shift on weekdays.  Not only is this the preferred schedule for your people, it is also when you have the most resources available.  On Monday through Friday day shifts, you will have greater access to vendors, parts suppliers and engineers.

This all points towards scheduling as much preventative maintenance as possible during Monday through Friday day shift.  Of course, there should always be preventative maintenance assigned to other shifts throughout the week so maintenance people will be productive if there is no corrective maintenance needing their attention.

Project Work

Project Work is like preventative maintenance in that it is best done during the weekdays when the most outside resources are available.  Unlike preventative maintenance, project work often requires several consecutive days or weeks of work to be accomplished.  It is best started, maintained and completed by the same people to minimize any loss of information during turnovers between crews.  To do this, you will want to use 8-hour workdays where the project people come to work and advance the project every day, five days a week.

Sample

rsz_slide1

You will notice that the top schedule uses 18 people.  It is most heavily staffed on the day shift.  The three people on the night shift is a “signal” as to what the minimum acceptable staffing should be at any time.

Most companies that go to a 24/7 schedule will take the top maintenance schedule and just throw it away.  They think that going from a 3-crew schedule to a 4-crew schedule means that everyone will go to the new schedule and that they need to add 33% more people. In this instance, that would mean a total staffing of 24 maintenance people (6 up from the original 18).

The reality is that maintenance is about to become more, not less efficient.  Because of this, an increase of 33% does not make sense.  (Note: most maintenance crews feel they are understaffed. While they may be right, my point here is that the schedule itself should not require an additional 33% staffing)

In the second schedule, I use 3 people as the minimum needed for corrective maintenance.  I create a 4-crew 12-hour schedule and put 3 people on each of these crews.  I then add 1 additional person and put a total to 7 people on the Monday through Friday schedule. These will be my preventative maintenance and project people.  Where did I get the number of “1” for how many extra people I need?  The original schedule shows that they are using 10 people on the day shift Monday through Friday.  By putting 7 people on the Monday through Friday and adding the three that will also be there because of the 24/7 schedule, I end up with the 10 people I need.

Now, there will be overtime.  Things will break down and people will have to be called it when it gets too bad.  However, that is the nature of the beast if you have chosen a career in maintenance.  The good news is that most weekends will now be freed up and most maintenance will take place where the most resources are available.

If you’d like to speak to one of our experts about your maintenance schedule, give us a call at (415) 763-5005.

 

Staffing and Scheduling – The Compressed Work Week

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This posting is the first in a series of posts that will examine the relationship between the schedule your employees are working and the number of people it takes to staff your operation.  Today, I will focus only on a scheduling practice commonly referred to as a Compressed Work Week.

A Compressed Work Week (CWW) schedule is one in which people work more hours on the days that they work so they can have more days off.

I’m going to look at this several different ways because the impact of a CWW changes, depending on your situation.

Scenario #1: I have one employee and he trims trees for 8 hours a day, five days a week.

In this case, we can be almost indifferent about our employee’s schedule.  He probably shouldn’t work at night but, so long as he spends 40 hours a week trimming trees, we don’t care if he does it in 10-hour or 8-hour chunks.  We do care about 12-hour chunks because in order to average 40 hours a week, he would have to work ten 12-hour shifts in a 3-week period. This means that at least one of those weeks will have 4 days of work in it.  This means 48 hours of work in a single week which will increase costs when you pay overtime for all hours worked over 40 in a week.  Note: No extra staffing is needed in this case.

Scenario #2: I have one employee and he is a receptionist for my office which is open for 8-hours a day, five days a week.

In this case, a CWW will actually hurt you.  If you only need a person for 8 hours in a day and they are there for 10 hours, you are paying for 2 hours that you don’t need.  Furthermore, this person is now only working 4 days a week while your office is open for 5 days.  This means you will have to use overtime for the fifth day or hire a part-time employee or do without a receptionist for 1 day a week.

Scenario #3: I have five employees working 8 hours a day for five days a week.  My business only needs four employees at a time and I need them for 10 hours a day.

No problem here.  Put everyone on 10-hour shifts.  They each work four days a week and they each get a different day off.  In this way, four show up every day for 10 hours and no overtime is incurred.  This example is made to work out perfectly.  However, imagine that you have 7 people and need only five to show up – the number just won’t work out.  Basically, if you are 20% overstaffed on a daily basis and your daily coverage is 20% less than it needs to be, you can change your schedule from 8’s to 10’s without a cost.  Anything else will be problematic.

A few notes about compressed work week schedules…

  • As you can see by the three examples above, your conditions will determine if this is a good idea or not.
  • Even though they might not realize it, your employees will love a CWW schedule after they have been on it for a few weeks.  The might not like the longer days but they will love the extra days off.  There are two things that result from this: (1) Retention will go up as schedule satisfaction goes up and (2) Retention will go down if you take away their new schedule which they have come to love – so be sure it will work for you before you implement it.
  • Although it may seem counter-intuitive, your employees will average more sleep on a CWW schedule than on one with 8-hour shifts.  The reason for this is that people sleep slightly less on days they are working longer shifts AND they are sleeping significantly more on days that they don’t have to work.
  • In the United States, we see CWW schedules implemented most often in operations that run 24/7. There are two reasons for this.  The first is that people love the extra days off. The second is that an 8-hour schedule that covers 24/7 must rotate (Trust me on this one.  Give me a call if you want more details as to why.)

 

 

Staffing, overtime and your schedule

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One of the most common and misunderstood issues surrounding schedules is the relationship between staffing, overtime and the schedule itself.

The reality is that a schedule has no impact on the quantity of overtime your site is experiencing.

Overtime is a function of (1) How much work is there to do and (2) How many people do you have to do that work.

Your schedule only tells you “when” the overtime will occur.

If you take a look at all the hours it takes to get a job done, and then look at how many people you have to do the work, you will know how many hours per person will be needed.

If you have 4,200 hours of work to be done next week and 100 employees to do it, then everyone will average 42 hours of work for an overtime rate of 5%.  Notice that the schedule played no role in determining this figure.

So where does a schedule come into play?

In most cases, a schedule will tell you “when” the overtime will occur.

For example, if your schedule has short shifts (i.e. 8 hours or less), the overtime is typically worked before or after a regular shift.  There are two reasons for this.  First, the shift is short enough that you can add hours to it without adversely impacting safety or productivity.  Secondly, the shorter the shift, the more days of work your schedule will have.  This means you have fewer days off.  The fewer days you have off, the more you want to protect them.  Therefore, if you have to work overtime, you’d rather do it on a day when you are already at work rather than giving up one of your preciously few days off.

If you have longer shifts (i.e. 10-hour or 12-hour shifts) then overtime is much more likely to occur on a regularly scheduled day off.  There are two reasons for this.  First, the longer the shift, the fewer hours you can add before the shift become too long and begin to adversely impact alertness, safety and productivity.  Secondly, longer shifts have many more days off.  More days off has the impact of lessening the value of a day off, (In much the same way that diamonds would be less valuable if they were laying around everywhere.)  This means that it is less painful to give up a day off, when you have a lot of them.

There is one condition where the schedule can play a role in the “quantity” of overtime – When you have the wrong schedule to begin with.

The wrong schedule can cause you to take the “perfect” number of people and put them in less than perfect locations.  For example, if you have the right number of people but your schedule causes you to be overstaffed during some time periods; you will then be under staffed during other time periods. This will cause overtime.  More importantly, they will cause Idle Time when you are overstaffed along with the Overtime for when you are understaffed.  Both of these conditions create high avoidable costs that can be eliminated with the right schedule.

 

How will a new schedule impact your Employee Handbook?

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Measure twice, cut once.

This adage is as applicable to a schedule change as it is for those in the carpentry trade.

Make one mistake and either be prepared to live with it or face the uphill battle of yet making another major change to your workplace.

There are all types of pitfalls.  You can put in the wrong schedule (yes, not all schedules are the same).  You can alienate a section of your workforce.  You can use the wrong staffing model.  You can overlook an opportunity.  Or you can put in the wrong policies.

This last mistake, the “policy” mistake is a big one.

Let’s take a look at a going from a 5-day schedule to a 7-day schedule.

To begin with, you will need “process” policies. The workforce will want to know “how” you are going to do things.  How will you decide who goes to what shift?  How will you pick the shift times?  How will you pick the schedule?  Does seniority count more than skills?  Should temporary employees participate?  Will there be a trial period?  This is a list that can seemingly go on forever.

Once the schedule is in place, will you have policies ready to support it?

If your answer is “Yes, our 5-day policies will work on a 7-day schedule,” then the answer is “No” your policies are not ready to go.

You will need to look at the following, at a minimum:

  • Overtime pay
  • Holiday pay, Holiday premiums, Holiday recognitions
  • Shift Differentials
  • Breaks
  • Jury Duty
  • Partial vacations
  • Vacations
  • Overtime coverage
  • Training
  • Shift Swaps
  • Absentee coverage
  • Attendance policy
  • Pay week hours
  • Payroll system settings

Let’s just take a look at vacation; possibly the simplest policy to address.  If you go to a 12-hour schedule, will employees still be able to take off full weeks or will they change to blocks of days?  Will they be able to take single days off and how much will their account be charged when they do and how much will they be paid?  Will vacation count towards hours worked for overtime calculations?  Can they carry over or sell back time at the end of the year?  Suppose they have some vacation left but not enough to take a week or even a full day off, what do they do?  Can they combine vacation time with other types of PTO?  Suppose I am on vacation (12-hour shifts) and a holiday falls during my time off, will I get 8 hours or 12 hours of pay?

Be ready to address your policies ahead of time if you want to have a successful transition.  They should be ready to go before the change takes place.  Remember to get your IT people involved as well.

Is Overtime Really a Problem?

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I recently participated in an online forum about the “Evils of Overtime.”  I was surprised at how uniformly overtime is seen as something to be avoided.  Its as if overtime was a measurement of how poorly you were managing your workforce.  Here was one of my comments:

Overtime is only a problem if you see it as such. It’s not unusual for a company to contact me with an “overtime” problem. They look at their costs and see, for example, a million dollars spent on overtime last quarter. They think they will save this amount if they eliminate overtime. The fact is that, unless they are improperly staffed, they will only reduce overtime by increasing straight time (hiring). After all, the work supposedly needs to be done and eliminating overtime means its either not getting done or you found another way to do it.

The cost of an hour of overtime is typically competitive with the cost of straight time. I’m working at a company right now and the precise cost of paying someone $15.47 an hour is $25.25. At the same time, the cost of paying someone that same hourly rate at time-and-one-half is…$25.35 an hour. 10 cents more!

Overtime allows you to compete for labor even though you cannot afford a high hourly rate. People can make more money and supplement their income in spite of low wages. I can work at company A for $20 an hour but no overtime or I can work at company B for $17 an hour but can work all the overtime I want.

Overtime is flexible. You don’t have to buy it in 40-hour/week increments. The person is already trained and hired.

On the downside, there are fatigue/safety issues, although these can be managed if you are paying attention. There is also to potential of too much overtime – translated into “not everyone likes a lot of overtime but everyone is getting a lot of overtime.”

This last issue can be fixed if you remember that overtime is a function of how much work there is and how many people you have to share in that work. Variations in workload aside; you should staff to the point that there is typically reasonable amounts of overtime for those that want it and very little mandatory overtime for those that don’t.

Two rules of thumb: (1) 20% of your workforce wants a lot of overtime; 20% wants no overtime and 60% will take it from time to time and (2) If you workload is flat, you should be in the 5% to 15% overtime rate. Note: Companies often boast that they are perfectly staffed because they have no overtime. They couldn’t be more wrong. Zero overtime almost certainly means you are overstaffed.