Overtime Management

Overtime is the amount of time someone works beyond normal working hours. Overtime, or time worked beyond a specified number of hours in a week by hourly, non-exempt employees, can wreak havoc on the operating budget of a small business. Pay for any hours worked as overtime are paid at a higher rate than regular hours. While there may be times when overtime is necessary and cost-effective, overtime pay can begin to drain your bottom line if not managed correctly. Advance planning and scheduling can help reduce the need for employees to work in excess of their scheduled hours. Proactively managing your employees’ overtime, avoiding surprises and preparing for the future can reduce your expense, protect your company from financial crisis, and improve morale companywide.

Overtime Management Software play critical role in helping management to track overtime of hourly employees. Knowing exactly how many hours everyone contributes is critical to making smart choices and handling potential overtime regulation changes. Overtime Management Software fulfills this by connecting to biometric machines and updating attendance of each employee in real-time, also thereby ensuring 100% precision when compared to manual supervision of overtime hours. Biometric time tracking also avoids timesheet rounding, which typically happens innocently enough but usually falls in the employee’s favour. There is also facility in Overtime Management Software to specify the grace period post the work hours. Usually it takes a few minutes past the standard work hours for employees to clock out of the factory. It maybe probably to remove their work dresses and other gears. This extra minutes may falsely be considered as overtime and would accrue into a huge sum altogether to be paid to the employees as overtime pay at higher rates than their regular hours’ pay. With Overtime Management Software, user can easily specify the grace period after work time. Overtime will be considered only if an employee spends time more than what is specified as the grace time.

Realtime information of overtime expenses is critical to the management. Overtime Management Software provides Top Management with enough information to make quick decision on overtime.

Employees can also track the overtime hours they have clocked on a day to day basis by referring the Employee Self Service portal of Overtime Management Software.

Tips for Overtime Management           

Not only does overtime rank as one of the biggest ongoing expenses for most companies, but the correct, or incorrect, management of overtime can mean the difference between huge payouts, low morale, and vulnerability to changes in overtime regulations. Overtime pay law stipulates that not paying overtime is illegal if your employees are non-exempt. Here are a few tips you can take note to manage overtime.

Work Load Assessment

Examine each employee’s workload during a given shift. If most employees are able to complete their assigned tasks within their normally scheduled hours, chances are good that you are allotting an appropriate number of hours for the job to be completed. If a large proportion of employees regularly fail to complete their work in a given shift and move from regular time into overtime, re-examine your assigned workloads. You may be asking for too much in terms of daily production or task assignment. Look for ways to scale back quotas or responsibilities so employees can complete their work in their assigned hours. If necessary, hire additional staffers.

Scheduling Management

Schedule enough staff members during each shift to ensure all necessary job functions are met with no need for overtime work. Having an appropriate number of people per shift will ensure no employees are overburdened and unable to complete their job responsibilities during regular hours. Always have back-up or temporary help available if an employee calls in sick or is on vacation.

Time Management

Sometimes employees need coaching on time management to fulfill their job duties during a given period of time. Give employees tips on how to prioritize tasks, work efficiently and manage their time appropriately. Conduct time management seminars if necessary, and make sure employees are appropriately trained on how to do their jobs, which will help them work more efficiently.

Advanced Planning

Occasionally, you may have a job or project that has the potential to run longer than expected, resulting in overtime pay for employees. When possible, plan for this busy time by working ahead of schedule and allowing employees to leave early or take time off during their normally-schedule work week. This will help you manage a 40-hour week work schedule.

Employee Monitoring

Keep tabs on how employees spend their time, and create a policy where overtime work must be authorized by a supervisor. If you feel an employee is purposely working slowly to generate additional income through overtime pay, confront the employee and reiterate the company’s overtime policy.

You may not be able to eliminate overtime completely even though you practice the points discussed above. So, you need an Overtime Management Software to calculate overtime according to your company policy. An overtime management software can automate the processing of overtime without any manual intervention.

AttendHRM is an HR Software with excellent Overtime Management features. AttendHRM allows you to define your overtime and payroll rules so that the overtime calculations can be fully automated.