Free The Truth About Six Pack Abs Main Program! Deliberating the trade-off between increased headcount vs. overtime to deal with increasing workload issues requires considering issues including the applicability of overtime laws, the pros and cons of overtime, the main advantages of increasing headcount, and the sustainability from the increased workload.
The Fair Labor Standards Act (FLSA) stipulates overtime wages at the very least of one-and-a-half times normal wages for employees doing work in excess of 40 hours a workweek, but does not require extra purchase work on weekends, holidays, night work, or regular events of rest unless such work counts as excess in the weekly 40 hours. The pay for calculation of overtime wages includes bonuses, and cashing out leave, but excludes any payments not part from the regular rate, any expense incurred by the employer on employees behalf, premiums taken care of 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 weekly for eligibility to overtime wages. Such exclusions render about 50 million beyond 120 million American workers exempt from overtime laws.
Some states have enacted overtime laws that will offer better overtime rates or include more employees in the net. For instance, California state regulations requires employers to cover double the normal wages for employees working a lot more than 12 hours on workdays or more than eight hours on the seventh consecutive workday of the single workweek. In addition, agreement with an employer with an employee or unions may stipulate anything excess or cover more rules for employees and overtime wages.
Organizations faced with extra work may necessitate employees to complete overtime. Such overtime increases the employees get hold of pay, and motivates people who work primarily for the money. It may allow the employee in order to complete more and thereby, secure a feeling of accomplishment, and lead to favorable performance appraisal ratings and accelerate promotion or pay hikes.
From the organizational perspective, overtime apparently helps with cutting costs, specially when the employees remain exempt from overtime stipulations and also the company doesn't have agreement in place to pay overtime. Overtime allows eking out more work from the available infrastructure such as office space and consoles, computers, software license, plus more, as the staff working longer hours uses the same resources. This increases the rate of return and utilization ratio of the infrastructure. Hiring new staff requires arranging for a whole new infrastructures because new staff works simultaneously and alongside existing staff. Overtime likewise helps reduce new employee hiring and training costs considerably.
Organizations that make covered employees work overtime miss 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 part time workers could perform the work at wages a smaller amount than what a normal employee attracts. The deciding factor in such cases could be the cost of hiring and training versus additional cash outflows for overtime wages.
However, irrespective of overtime wages, organizations get left behind when employees perform overtime. The U. S. Department of Health and Human Services report that 16 out with the 22 major studies addressing health and wellness effects associates overtime with poorer perceived overall health, increased injury rates, more illnesses, and increased mortality. Two studies associated overtime with overweight gain, another two studies associated overtime with additional 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 between the 9th to 12th hours, leading to lower use 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 reducing the quality of work output.
An article by Michelle Rafter 'The Yawning of the New Era' published in Workforce Management Magazine in December of 2010, documents information about the rise of human fatigue inside workplace. It mentions a case of nurses' work hours at Allegheny General Hospital in Pittsburgh Pennsylvania the location where the company, to cut costs, requested nurses to operate overtime. This resulted in fatigue and higher sick leave incidences, resulting in a vicious circle of high overtime levels. The company stopping the overtime policy ended the vicious loop.
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 each hour owing to operate held up.
The decision on increased headcount vs. overtime ultimately depends on whether the increased workload would sustain with time or is really a seasonal or one-off spike. The harmful effects of overtime are long-term in nature, coming when an employee works overtime over a sustained basis. When the increased workload does not sustain beyond a period of time, both employees and employers may reap the benefits of overtime for example higher wages, saving on recruiting and training new hires, higher asset utilization ratios, plus more. Moreover, increasing headcount when the extra 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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