Overtime is the amount of time someone works beyond normal working hours. Overtime, or time worked beyond a specified number of hours in a week by hourly, non-exempt employees, can wreak havoc on the operating budget of a small business. Pay for any hours worked as overtime are paid at a higher rate than regular hours. While there may be times when overtime is necessary and cost-effective, overtime pay can begin to drain your bottom line if not managed correctly. Advance planning and scheduling can help reduce the need for employees to work in excess of their scheduled hours. Proactively managing your employees’ overtime, avoiding surprises and preparing for the future can reduce your expense, protect your company from financial crisis, and improve morale companywide.
HR time attendance software, AttendHRM, play critical role in helping management to track overtime of hourly employees. Knowing exactly how many hours everyone contributes is critical to making smart choices and handling potential overtime regulation changes. AttendHRM fulfills this by connecting to biometric machines and updating attendance of each employee in realtime, also thereby ensuring 100% precision when compared to manual supervision of overtime hours. Biometric time tracking also avoids timesheet rounding, which typically happens innocently enough but usually falls in the employee’s favor. There is also facility in AttendHRM to specify the grace period post the work hours. Usually it takes a few minutes past the standard work hours for employees to clock out of the factory. It maybe probably to remove their work dresses and other gears. This extra minutes may falsely be considered as overtime and would accrue into a huge sum altogether to be paid to the employees as overtime pay at higher rates than their regular hours’ pay. With AttendHRM, user can easily specify the grace period after work time. Overtime will be considered only if an employee spends time more than what is specified as the grace time.
Realtime information of overtime expenses is critical to the management. AttendHRM Management information system is an online portal available to staffs in the management to take quick decisions to manage overtime.
Employees can also track the overtime hours they have clocked on day to day basis by referring the employee self service portal of AttendHRM.
Tips for Overtime Management
Not only does overtime rank as one of the biggest ongoing expenses for most companies, but the correct, or incorrect, management of overtime can mean the difference between huge payouts, low morale, and vulnerability to changes in overtime regulations. Overtime pay law stipulates that not paying overtime is illegal if your employees are non-exempt. Here are a few tips you can take note to manage overtime.
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