It’s time to ban overtime! That’s right, we said it! No more overtime!
Let’s think for a moment about what we have to give up in hopes of gaining that extra pay: Time with our family, time to relax, impacts to mental health and overall loss of “you” time.
And what do we get for all this sacrifice? More money. Makes you wonder if it is even worth it.
Now from a businesses point of view, what do we gain and loose with overtime. Do we get any extra work completed by our team? Does it save us any money? Is our team any happier? Are they any more motivated?
So why do we give up so much for overtime? Money.
Is there a way to ban overtime, increase productivity, boost morale, ensure more family time and save or make more money as a company? We say YES!
Before we go into the how, first we always recommend you speak with your team to find out WHY they want overtime. Money isn’t an answer. Money is the means for something else. Is to buy that new car, is it to go on vacation, is it to buy better gifts at Christmas? Find their motivation to ensure this method of “banning” overtime is suitable.
So how do we ✌️BAN✌️ overtime while still motivating our team?
Set out your clear working hours with your team, be it 9am-5pm, or however your shifts run. Team members must start and finish on time. If they finish on time, they gain points; when they work overtime, they lose a point.
If they work overtime, they still get their pay for their overtime, but lose a point.
The points relate to an actual financial gain to the employee (above the usual overtime pay rate). These point are then calculated to reflect their bonus either annually or quarterly. The more they leave on time, the more money they get as a bonus and the reverse happens when they finish late.
A great way to calculate the point system, is based on their current overtime rate and how much overtime they currently get.
If they get on average $55 per overtime day, then that would be the value of your point. Meaning they could get an extra $1100 a month for NOT working overtime.
But why do this?
Have you ever noticed how much you get done the day or two before you leave on holidays? There is no “tomorrow” so you can’t procrastinate any more. But when you have the ability of overtime, or you run the risk of losing part of your annual/quarterly bonus you can guarantee people are going to be more productive!
✓ By eliminating the ability of overtime, you apply a new level of pressure and deadline.
✓ People must reduce their idol time, time spent procrastinating, to be more productive and finish on time
✓ Boost in productivity
✓ Boost in morale and mental health by having more family time
✓ Reduction in overtime pay
✓ Boost in profit from productivity to easily cover bonuses
✓ Team feels ownership of their bonuses
✓ Team controls their fate more
It is safe to safe that there will be some hurdles to overcome. Employees are accustomed to being less productive, so they will continue to put things off more than they should. Their work will pile up like always and eventually bite them in the butt.
BUT, they will adapt when they are held accountable to delivering results; They can not say “If you let me have overtime, I’d get it done” because this only shows they aren’t being as productive in their 9-5 shift (or you have too much for work too little hands).
If you can role this out within your workplace, it will take time. But you will find the benefits immense within the workforce.
We advise implementing bonuses quarterly IF you have a team who had a high use over overtime hours in the past. Then you can drop it back to annually once they are used to it.
This is simply adjusting their perspective of overtime to rewarding them for productivity and meeting deadlines.