During the COVID-19 pandemic, many employees are working overtime; however, it is the unplanned overtime that will destroy your profits and upset your employees.
3 Tips To Help You Reduce Unplanned Overtime.
#1: Automate Your Timekeeping System/Clock - This is the #1 way to reduce unplanned overtime. By the way, automation not only reduces unnecessary overtime but also cuts the time needed to manage and control it by 25% to 33%.
#2: Consider Using A Cloud-Based Time Clock System – Having a cloud-based system that is integrated with your payroll platform is one of the best ways to help prevent overtime fraud.
#3: Use A Timekeeping System That Offers The Following Features:
- Alerts a manager when an employee(s) reaches overtime status.
- Notifies a manager when overtime is being scheduled.
- Prohibits employees from clocking in too early.
8 Best Practices To Help You Manage Overtime.
- Bring existing/new vendors in for a presentation on their timekeeping system.
- Cap overtime by department(s) and/or employee(s).
- Cross-train your employees to handle any extra demand.
- Enforce length-of-time/shift restriction.
- Have a written set of rules for who gets overtime and how overtime is assigned.
- Make sure your hardware/software technology is up-to-date.
- Schedule overtime prudently.
- Watch out for certain employees getting all of the overtime.
How To Enforce Your Overtime Policies.
If you want to prevent unauthorized overtime, you should train the managers/supervisors on how to handle and communicate your overtime policy(s) - see below.
- Employees are not allowed to clock in more than five minutes before their scheduled start time or clock out more than five minutes after their scheduled end time.
- Employees need to know the consequences of not following your overtime policy, i.e., verbal warning, written warning, or termination.
- You can discipline an employee for failing to abide by company policy; however, you still must pay them for all unauthorized hours worked.
Executive Summary: The most effective way to reduce unwanted overtime is to 1. Automate your time and attendance and scheduling system, and 2. Train all managers and supervisors on your overtime policy(s). Remember, overtime that’s correctly projected can improve productivity, profits, and employee engagement. Unfortunately, unplanned overtime does the complete opposite.