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Are You Effectively Managing Your Overtime Spend?

When was the last time you considered your company’s overtime spend? Overtime is consistently one of the biggest ongoing expenses for companies, and managing it ineffectively is a fast way to waste money. Plus, mismanagement of overtime could affect your team’s morale and begin to contribute to team members’ burnout.

Let’s take a look at three simple tips to make sure you’re managing overtime at your company effectively.

#1: Track employees’ overtime hours.

The number-one rule to follow when it comes to overtime is to avoid any surprises. You don’t want to look at your payroll at the end of the month or quarter and find out that several employees have been logging an exorbitant amount of overtime hours. That’s why tracking your employees’ overtime hours is essential. Using a mobile time tracker system is always a good idea — this kind of resource alerts employees and managers when overtime thresholds are approaching.

#2: Consider employee classification.

It’s your job as an employer to make sure that employees are classified correctly. You don’t want to find yourself in a difficult situation because you misclassified an employee and didn’t give them the overtime pay they were warranted. Be sure that you regularly evaluate your employees’ roles, relationships to the company, and tax status so that you know exactly where they stand.

#3: Ease the burden with cross-training.

If an employee is the only one who can do a particular job, their overtime expenses may add up quickly. Plus, it’s never a good idea to rely on one individual to be responsible for a crucial task. Consider cross-training your employees in various areas in order to spread out the burden a little. Not only does this lessen the overtime burden, it tends to improve staff morale and allows you to be more flexible with scheduling, too.

Is your company looking for help with its staffing needs? That’s where we come in. Contact Axiom Staffing Group right away to start staffing your business with the very best talent in your region.