You have a system in place to reduce the need for regular overtime
Overtime is very important because it provides an effective way of increasing office and factory capacity for a short time. Once it becomes a regular feature, however, this flexibility is lost, as people become tired and less effective. They also become dependent on the extra money for their day to day living.
Key Issues
·         The output from manufacturing and design teams is basically dependent on the -hours people are available to perform various tasks
·         Overtime is one of the few ways a business can use to quickly adjust manpower availability to meet short-term fluctuating demands on the business
·         Regular, routine overtime, however, removes a manager’s ability to adjust the available manpower to meet these fluctuating business requirements
·         In order to reduce the need for regular overtime, you can:
o      Introduce annualised hours to accommodate seasonal variations in work load
o      Introduce flexi-time, where people work core hours plus the time needed to complete the job
o      Train people to perform their jobs more effectively, eliminating non value adding activities and making more time available
o      Simplify, eliminate and/or automate routine administrative tasks
o      Employ additional people on temporary contacts to cover peak/seasonal load variations
o      Find ways to significantly reduce absenteeism and lost time; Introduce process orientated self-directed teams, re-designing tasks so jobs can be completed in normal working time
o      Review shift patterns to create additional flexibility and available capacity
o      Employ a proportion of the workforce on fixed term contracts to provide the flexibility needed to match resources to demand
o      Implementing appropriate ICT systems to reduce workloads
o      Off load or subcontract additional work to capable suppliers
o      Build an overtime element into pay rates and don’t pay for overtime
·         Monitor the time employees spend at work and encourage people to adopt an acceptable work/life balance
Factors for Success      
Factors to  Avoid
1.     Your paid overtime is controlled and agreed with the appropriate manager
2.     Cost of overtime payments is a key performance measure
3.     You constantly review jobs to remove needless tasks or bureaucracy
1.     Use overtime to increase people’s pay
2.     Accept particular times as normal paid overtime, irrespective of need for it
3.     Building a culture of routine overtime
4.     People being de-motivated and tired by spending too long at work
Who does this apply to?
All managers, personnel managers, team leaders
Realisable Benefits
Establishes a core team of motivated employees, ensures resources are available to meet demand, makes the business more cost effective


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