Managing overtime is not an easy task, especially if your company is using manual time cards and spreadsheets — an archaic practice at best, although, several companies still track employee hours, overtime and leave policies using these tools
Tracking overtime does not have to be that hard, especially if you are using a modern time and attendance solutions. Here are excerpts from an article, on how to manage overtime, by Rob Press for online magazine TLNT titled; 6 Ways to Minimize the Impact of the New US Overtime Rules
“Simplify complex policies: Review your overtime policy, reading it through the eyes of the employees. You may find that by simplifying your policy, you could actually minimize the amount of work that you need to do to approve each request.
Complex policies were actually at the root of a recent class action in California. At some company facilities, there was a flat “no overtime” policy. At others, the policy stated that prior approval for overtime must be given by two relevant managers; something that the employees stated was an “impossible task” when they were under pressure to get the job done. Ultimately, the company agreed to settle the case for $20 million.
This really shows just how many complex stages can often be involved in overtime policies, and begs the question: Could making policies more straightforward – and consistent — not only help businesses to achieve their goals, but also help to make HR and manager workloads more manageable?
Focus on organization: To manage overtime like a boss, we need to focus on overtime specifically, right? Well, maybe not. To properly manage overtime, it’s important to look at the bigger picture.
There was a very interesting study undertaken by the US Postal Service across the Northeastern states which found that managers who failed to effectively manage unscheduled leave ended up having to deal with more overtime. According to the report, “management did not effectively manage unscheduled leave, which contributed to overtime hours.” Makes sense, doesn’t it?
Track employee hours: It doesn’t matter whether you’ve been working in HR for years or you’re just starting out in your career, you know, or will quickly discover, that employees are bad — very bad — at tracking their time. With so many other tasks that need to be prioritized, filling in timesheets often ends up at the bottom of the list.
And the problem doesn’t end there. Even when employees do try to track their time, they’re often doing it days later, which means the hours they’re putting down probably aren’t all that accurate. According to studies of memory, people quickly forget what they learn. What did you have for lunch three days ago?
Analyze: One of the most vital aspects of good overtime management is what it can tell us about workforce practices. As an HR professional, you’re not only responsible for supporting employees, but also for supporting the business, and for raising concerns that can help it improve.
One of the other advantages that an automated tracking system offers is the ability to analyze time and attendance. You can do this with paper timesheets, but it’s much harder.
Minimize overtime: Of course, the absolute best way to manage overtime is to have less of it. Ha! Easier said than done right? Well, being able to reduce overtime isn’t something that’s guaranteed, but there are a few methods that can minimize the need for extra hours.
Although there are any number of reasons for overtime, when it becomes endemic that’s often a sign there are not enough resources to complete the necessary tasks within the time given.
Managing change: Understanding how to better manage overtime is a significant part of handling the big changes that are taking place within the HR industry right now. With HR professionals expected to receive more requests for overtime payments than ever before under the new rules, now is the perfect time to look at improving internal processes and honing management skills for efficient and effective working”.
So, to summarize; proactively managing your employees’ overtime, avoiding surprises and preparing for the future can reduce your expense, protect your organization from unwanted legal action, and improve morale across the company.
ATS TimeWorkOnDemand is a best-of-best 21st century human capital management (HCM) software provides an end-to-end employee lifecycle management solution. ATS TimeWorkOnDemand Workforce Management solutions help meet your workforce needs regardless of your industry or where you do business.