Free Healthy Diets For Teens! Deliberating the trade-off between increased headcount vs. overtime to cope with increasing workload issues requires considering issues including the applicability of overtime laws, the pros and cons of overtime, some great benefits of increasing headcount, along with the sustainability from the increased workload.
The Fair Labor Standards Act (FLSA) stipulates overtime wages to start of one-and-a-half times normal wages for employees in excess of 40 hours a workweek, but doesn't require extra spend on work on weekends, holidays, night work, or regular era of rest unless such work counts as excess from the weekly 40 hours. The buy calculation of overtime wages includes bonuses, and cashing out leave, but excludes any payments not part of the regular rate, any expense incurred by the employer on employees behalf, premiums purchased holiday work, discretionary bonuses, and payment as gifts.
The FLSA excludes employees employed as executives, administrative, professional and outside sales employees, and certain computer employees all earning above $455 per week for eligibility to overtime wages. Such exclusions render about 50 million from 120 million American workers exempt from overtime laws.
Some states have enacted overtime laws that will offer better overtime rates or include more employees inside the net. For instance, California state guiidelines requires employers to spend double the normal wages for employees working greater than 12 hours on workdays or over eight hours for the seventh consecutive workday of the single workweek. In addition, agreement with an employer as well as an employee or unions may stipulate anything excess or cover more rules for employees and overtime wages.
Organizations facing extra work may need employees to do overtime. Such overtime boosts the employees get hold of pay, and motivates people that work primarily for cash. It may permit the employee in order to complete more and thereby, secure a feeling of accomplishment, and cause favorable performance appraisal ratings and accelerate promotion or pay hikes.
From the organizational perspective, overtime apparently works well for cutting costs, specially when the employees remain exempt from overtime stipulations along with the company doesn't have agreement in place to pay for overtime. Overtime allows eking out more work from the available infrastructure such as office space and consoles, computers, software license, plus much more, because the staff working longer hours uses exactly the same resources. This enhances the rate of return and utilization ratio in the infrastructure. Hiring new staff requires arranging for a fresh infrastructures because the new staff works simultaneously and alongside existing staff. Overtime can also help reduce new employee hiring and training costs considerably.
Organizations that produce covered employees work overtime lose out directly, for overtime entitles these phones one and a half times normal wages inclusive of most benefits when another employee could do exactly the same work for normal wages. Still better, temporary, or in their free time workers could perform work at wages a smaller amount than what a standard employee attracts. The deciding aspect in such cases will be the cost of hiring and training versus additional cash outflows for overtime wages.
However, no matter overtime wages, organizations lose out when employees perform overtime. The U. S. Department of Health and Human Services report that 16 out of the 22 major studies addressing general health effects associates overtime with poorer perceived overall health, increased injury rates, more illnesses, and increased mortality. Two studies associated overtime with unhealthy weight gain, another two studies associated overtime with an increase of alcohol use and smoking levels, and another study associated overtime with poorer neuropsychological test performance. The same report also reveals employees in a state of decreased alertness and increased fatigue involving the 9th to 12th hours, causing lower application of cognitive faculties, decreased vigilance on task measures, increasing likelihood of errors and accidents, plus much more.
Employees who work overtime also tend to get less sleep, and remain more susceptible to cardiovascular and gastrointestinal disease, diabetes, and musculoskeletal conditions. They also face work-family imbalance. All these negative conditions have an effect on work performance, lowering productivity, increasing absenteeism, and lowering the quality at work output.
An article by Michelle Rafter 'The Yawning of an New Era' published in Workforce Management Magazine in December of 2010, documents facts about the rise of human fatigue inside workplace. It mentions a clear case of nurses' work hours at Allegheny General Hospital in Pittsburgh Pennsylvania in which the company, to reduce costs, requested nurses to function overtime. This generated fatigue far better sick leave incidences, bringing about a vicious circle of high overtime levels. The company stopping the overtime policy ended the vicious cycle.
Increasing headcount allows the employer access to a wider and diverse talent pool, providing more flexibility. A 2004 Unscheduled Absence Survey by CCH Incorporated revealed conditions using the highest rate of overtime likewise have the highest rate of absenteeism, and unscheduled absenteeism costs US employers $3,600 by the hour owing to function held up.
The decision on increased headcount vs. overtime ultimately depends on whether the increased workload would sustain after a while or is often a seasonal or one-off spike. The ill-effects of overtime are long term in nature, coming when a staff works overtime on a sustained basis. When the increased workload doesn't sustain beyond a period of time, both employees and employers may reap the advantages of overtime such as higher wages, saving on recruiting and training new hires, higher asset utilization ratios, and much more. Moreover, increasing headcount when the work is a passing phenomenon leaves employers deliberating over what to do with excess employees when workload returns to previous levels.
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