5 Strategies to Eliminate Employee Overtime

Overtime, which was once thought to boost productivity, has quickly become not only a significant decrease in productivity but also the leading cause of poor work-life balance. In reality, eliminating overtime will not only improve your company’s bottom line but will also reduce the negative impacts such as physical and mental health issues, a lack of productivity and efficiency, an increase in safety risks, and a higher turnover rate.

Ensure Your Team has Necessary Equipment and Resources

A sturdy boat and a good fishing pole would make catching fish easier. As the metaphor goes, your employees will be unable to do their jobs effectively unless they are provided with the necessary tools and resources. Utilizing workgroup management tools, automated systems, internal communication lines, and digital checklist systems, your employees will be able to work more efficiently and reduce overtime. These resources can help you save time by efficiently planning projects, implementing a labor and attendance management system, allowing your employees to communicate effectively via phones or wireless landscape, and using research software.

Match Staffing to Demand

Demand will always outnumber labor; businesses have busy seasons and periods of aggressive growth. In fact, a lack of labor planning, failure to meet performance expectations, and a lack of real-time visibility account for 50% of all overtime. As a result, eliminating wasteful processes and non-value-added activities, as well as implementing a lean labor management system, can not only improve morale and cost savings, but also assist you in better matching your labor to the demands of your company.

Track and Identify Overtime Patterns

When your employees get into the habit of working overtime, it can feel like it’s normal for them. Thus, it is beneficial to set aside time during payroll to identify patterns in your overtime, allowing you to stay ahead of your employees. Tools like scheduling apps and work management software make it simple to give employees their schedules or adjust them if they are approaching overtime. Implementing these tools allows you to go back and look at previous data, such as when overtime spikes occur, so you can schedule and adjust accordingly.

Coach for Higher Performance

How can you, as an employer, ensure that you provide your employees with unlimited eLearning content and materials required for their job? Adopting a Learning Management System (LMS) will provide your employees with materials to help them feel more confident in their jobs, resulting in more efficient processes and reduced overtime. In addition to LMS, consider incentivizing your employees with team building activities, mini games, and even moving your business into employee ownership, as NewStream Enterprises, LLC does.

Outsource Resources

Keeping all resources in-house can be expensive and inefficient, as your company will spend time and money training current employees. Furthermore, a lack of labor resources will put strain on your existing workforce as they must carry the overloaded work. As a result, outsourcing your production and labor would be your best bet for relieving these burdens. For example, a reputable third-party logistics provider, such as NewStream Enterprises, LLC, with the necessary tools and knowledge in their served industries, can benefit your company by handling aftermarket production, saving money, increasing efficiency and customer satisfaction, and allowing you to focus on your core competencies.

It can feel as if your company is always working overtime hours. Taking the necessary precautions to avoid overtime will not only boost your morale but will also save you money. Outsourcing your aftermarket production to a 3PL like NewStream can alleviate the stress that comes with it. As an employee-owned comprehensive supply chain management company, our team of employee owners is equipped with knowledge and equipment to help you focus on the big picture and start loving your supply chain again.

Ready to eliminate your overtime? Chat with one of our experts today!