Healthy Weight Loss Per Week! 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, along with the sustainability of 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 need extra buy work on weekends, holidays, night work, or regular times of rest unless such work counts as excess with the weekly 40 hours. The spend on 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 every week 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 could offer better overtime rates or include more employees inside the net. For instance, California state law requires employers to cover double the normal wages for employees working over 12 hours on workdays or over eight hours for the seventh consecutive workday of your single workweek. In addition, agreement with an employer as well as an employee or unions may stipulate anything excess or cover more rules for employees and overtime wages.
Organizations up against extra work may need employees to perform overtime. Such overtime increases the employees get hold of pay, and motivates individuals who work primarily for money. It may let the employee in order to complete more and thereby, secure feeling of accomplishment, and bring about favorable performance appraisal ratings and accelerate promotion or pay hikes.
From the organizational perspective, overtime apparently can be useful for cutting costs, particularly when the employees remain exempt from overtime stipulations and the company doesn't have agreement in place to pay for overtime. Overtime allows eking out more work from your available infrastructure such as office space and consoles, computers, software license, and more, since the staff working longer hours uses the identical resources. This boosts the rate of return and utilization ratio with the infrastructure. Hiring new staff requires arranging for a brand new infrastructures because the new staff works simultaneously and alongside existing staff. Overtime can also help reduce new employee hiring and training costs considerably.
Organizations that make covered employees work overtime miss out directly, for overtime entitles the crooks to 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 in your free time workers could perform work at wages a smaller amount than what an ordinary employee attracts. The deciding aspect in such cases is the cost of hiring and training versus additional cash outflows for overtime wages.
However, no matter overtime wages, organizations get left behind when employees perform overtime. The U. S. Department of Health and Human Services report that 16 out of the 22 major studies addressing our health and wellbeing effects associates overtime with poorer perceived overall health, increased injury rates, more illnesses, and increased mortality. Two studies associated overtime with unhealthy weight gain, another two studies associated overtime to comprehend 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 relating to the 9th to 12th hours, producing lower application of cognitive faculties, decreased vigilance on task measures, increasing chances of errors and accidents, and much more.
Employees who work overtime also have a tendency 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 directly affect work performance, lowering productivity, increasing absenteeism, and reducing the quality at work output.
An article by Michelle Rafter 'The Yawning of an New Era' published in Workforce Management Magazine in December of 2010, documents info about the rise of human fatigue inside workplace. It mentions an instance of nurses' work hours at Allegheny General Hospital in Pittsburgh Pennsylvania the location where the company, to slice costs, requested nurses to function overtime. This triggered fatigue and higher sick leave incidences, bringing about a vicious circle of high overtime levels. The company stopping the overtime policy ended the vicious cycle.
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 while using highest rate of overtime also have the highest rate of absenteeism, and unscheduled absenteeism costs US employers $3,600 each hour owing to function held up.
The decision on increased headcount vs. overtime ultimately is dependent upon whether the increased workload would sustain with time or is a seasonal or one-off spike. The ill-effects of overtime are long term in nature, coming when an employee works overtime on the sustained basis. When the increased workload will not sustain beyond a period of time, both employees and employers may reap the main advantages of overtime for example higher wages, saving on recruiting and training new hires, higher asset utilization ratios, and more. Moreover, increasing headcount when the additional 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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