As business picks up here and there during the busy season, overtime sometimes presents itself as a solution. From a business owner’s perspective, it’s usually about paying a premium cost for a little bit more of your current employees’ time. Little harm done, right? Before jumping to conclusions on the topic, as always, it’s important to plan. Here are three perhaps more hidden costs of overtime that you’ll want to consider.
» Productivity Decline
Think about your work schedule. The longer you work through the week, the more your productivity declines. According to a Stanford University study, productivity during a 60-hour work week, when worked by employees used to working 40-hour work weeks, was less than two-thirds that of what it was when 40- hour weeks were worked. With this hidden cost of overtime, it’s important to consider your employee’s health and well-being and not stretch them past their limits.
» Increased Accidents & Mistakes
Another of the hidden costs of overtime is a potential increase in accidents and mistakes made on the job. This becomes especially important when working in light industrial and factory environments. But it’s even important to consider when talking about accounting jobs, or jobs in which attention to detail is required. The more hours employees work, the greater the chance that even more time will be required in order to fix mistakes or recuperate from a mishap.
» Morale Decline
Finally, productivity decline and accidents not withstanding, pushing your core employees to the brink is bad for morale. Sure, employees might appreciate a bit of a cash bump in the short run. But consistently asking them to work beyond what they originally signed up to do isn’t going to help anyone — least of all the company itself.
So, what to do to avoid the hidden costs of overtime? First, engage in proper business planning and anticipate busy times. Second, partner with a staffing or recruiting firm to bring on temporary or contract workers. These temps can fill in gaps to keep your core employees fresh and happy, boosting your productivity and efficiency in the busy times. Once the busy season calms down, the temps can be released. Or, alternatively, once your business is bolstered by the additional work, consider bringing one of those temps into your workforce. The choice is yours.