News & Advice

Industry insights, staffing news and job search advice.

Should I Pay Overtime or Hire Additional Employees?

One of the trickiest decisions hiring managers have to make is how to handle temporary high labor demand. Finding the right solution requires analysis of finances, a deep look into how departments work and how people feel about their jobs.


Pay Overtime-The Money Angle
One reason that overtime is a bad word in some companies is because the business is forced to shell out more money per staff hour. For miserly companies, this is one of the worst things that can happen to carefully guarded profit margins. Even companies with a little bit more of an open purse can have problems if they don’t control overtime spending. Often, pressure from the top makes decisions harder for middle managers that have to produce more without digging into revenues.

Impact on Staff
Overtime can also have a negative effect on employee morale. While some managers assume that employees would like to work more hours for more money, it’s not always the case. Many workers are completely satisfied with a 40 hour work week, and want to spend the rest of the time with their families or pursuing their personal goals. They may not want to get stuck picking up the slack or burning the midnight oil, regardless of a higher per hour wage. Even those willing to commit to overtime might have a lot to do on weekends or whenever they are slated for overtime shifts, and the resulting conflicts can get in the way of a successful and happy team.

Effect on Productivity
Managers have also seen instances where overtime doesn’t produce the kind of additional productivity that’s expected. This phenomenon shows how workforce management can be more of an art than a science, and how hard it can be to assume anything about human behavior, which is one of the biggest wild cards in any business analysis.

People don’t always perform at a standard ‘top rate.’ Lots of jobs involve downtime, and adding a few extra hours isn’t always likely to boost operations the way it’s intended to.

One solution for businesses afraid of overtime complications is to choose to take advantage of additional, temporary staffing instead. Take a look at what Employment Solutions offers for companies that need a little more work done, and relying on in-house staff would put a strain on existing operations.

You may want to download our FREE ebook:

New Call-to-action