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Working overtime: exploitation or opportunity?

Written 18 June, 2019, 7 minutes to read

When it comes to working overtime, few people actually enjoy it. People usually do it because they have to: because a project has swelled out of proportion, or someone got their estimates wrong. But it can also be an opportunity – for additional compensation or greater schedule flexibility – that people voluntarily commit to. So should workplaces guard against overtime or consider offering it to employees? Can it open up positive opportunities for employees, or should it always be see as something undesirable – the mark of an unstable and potentially exploitative workplace?

The problems with overtime

Most people aren’t overjoyed at the idea of overtime, and for very good reason. It comes with a whole host of problems, many of which are more overt than others. In the majority of contexts, overtime can be symptomatic of:

  • An overstretched workforce. If you’re having to ask employees to put in extra hours, surely that’s a sign you simply don’t have enough resources to manage your workload?
  • Poor project estimation or time management. Overtime suggests that you underestimated the time a project would need at the scoping stage, or that you didn’t allow employees enough time to focus on it in addition to their other work. Either way, it doesn’t look good!
  • Unrealistic client expectations. Having to work overtime can also occur where clients aren’t aware of the time tasks take, aren’t clear that a brief has been finalized, or put pressure on you to compete projects in unworkable time spans. It can be a sign that you’re selling yourself short or not communicating project plans clearly.
  • Communication breakdown. Overtime also indicates communication issues more widely. Needing more hands on deck suggests that no one is imposing proper working boundaries or setting realistic expectations – or if they are, they aren’t doing a good job of it.
  • Toxic company culture. Many workplaces have a culture of staying late, beyond contractual working hours. It leads to the problem of presenteeism, where employees think they have to put in overtime – and be noticed doing so – if they want to succeed. A recent study found that the average American worked an extra 23 hours each month just to be more visible!

In all these cases, overtime is clearly a reflection of poor leadership. When it becomes a structural problem, it can breed employee resentment, distrust and ultimately disengagement – harming your company’s productivity in spite of the extra working hours put in.

The benefits of overtime

That said, there are cases where overtime confers certain benefits for workers. These mainly relate to situations where overtime is optional, but even when it’s mandatory, robust compensation written into an employee’s contract can still turn it into a positive. We should also consider that overtime can also:

  • Give workers the opportunity to earn more. The obvious perk for employees is the fact they’ll earn more money by doing overtime. Putting in extra hours usually results in getting paid time and a half, or sometimes even double pay. If you’re looking to make some extra cash quickly, overtime can be the easiest and most obvious solution.
  • Take advantage of your individual productive flow. We all work in different ways: some of us do our best work in the mornings, but if you’re a night owl, you may not get into the flow until late afternoon. The ability to work overtime means you can capitalize on your natural workflow, which may not fit into 9-5 working pattern… and make money in the process.
  • Offer autonomy and flexibility. Following on from this, allowing workers to take advantage of their natural productivity flows and manage their own working schedules allows them to feel independent and autonomous. For those who offer employees time in lieu for overtime, it can be useful for fitting work around personal commitments – working slightly later on a Monday so you can leave earlier on a Wednesday, or come in slightly later on a Thursday. It recognizes people aren’t cogs in machines, but are individuals who work in different ways and have different schedules.

But these pros and cons are not always this clear-cut. Short-term benefits can often usher in deeper long-term issues. While someone who is available to work extra time can benefit, someone with more personal commitments can find the practice unfair. And to truly label overtime as “beneficial”, there are a few terms it needs to satisfy openly.

The issue of overtime pay

While some companies have clear policies on payment (e.g. time and a half or double time), others aren’t quite so clear… or quite so generous. Certain companies offer “payment in kind” – like paying for dinner while you work late, which hardly counts as payment. Worse still, others offer nothing at all. This is one of the biggest signs of a toxic working culture – one where employees are seen as limitless resources, instead of people.

Other companies allow you to counterbalance overtime by leaving early later in the week, or put the time worked towards extra vacation days. These perks can add to the sense of autonomy, of being able to shape your working schedule the ways you want… but the problem is that there’s a lack of consistency; employees remain uncertain over what’s required, how often they can work overtime into their schedule, or when they can actually take time in lieu.

In order to be truly beneficial, working overtime should always be met with some form of compensation – and that should be satisfactory for the employee, not just the employer. Otherwise it leads to accusations of wage theft and non-compliance with minimum wage legislation. This is a huge issue in employment law right now in Europe, where the EU has just introduced mandatory employee time tracking for all its member states.

Overtime and employee health

Obviously, working overtime can have a significant impact on employee health. Working too many hours can lead to burnout, fatigue and stress and employers need to ensure overtime is compliant with regulations on a worker’s right to rest.

Serially front-loading your week with work is rarely sustainable, in contrast to scheduling a manageable, regular flow of work throughout. Overtime can also actually seriously limit our productivity, since when we work extended hours, we don’t give our brains the rest they need to perform well. So working overtime itself doesn’t guarantee high-quality work for the extra effort.

But there are other adverse effects. Spending too long in the office can cause workers to lose enthusiasm, or become bored of their jobs. Having a proper balance between work and home life is essential for maintaining wellbeing, and working overtime means you can’t prioritize your personal life. The more overtime you do, the less time you have for friends and family, and the less time you have to simply relax – something that’s imperative for good mental health.

The impact of overtime on culture

Aside from the problem of presenteeism, overtime has other adverse effects on the workplace. It can hamper collaboration, for one: if employees leave early to make up for prior overtime, it’s harder for colleagues to coordinate with them – especially if a business works around core hours. Similarly, if certain employees leave at the normal time but other employees stay late, decisions can be made that are not collaborative, leading to miscommunication and frustration.

Working overtime can also be extremely harmful for company culture. Even when people choose to stay late, and do so because they genuinely want to, it works to slowly normalize overtime. Other people will feel obliged to stay late because everyone else does, brewing resentment… not an environment you want to spend extra time in!

Additionally, continually seeing people staying late doesn’t do wonders for management. It suggests productive output is valued above an employee’s humanity; as a person with families, friends and other interests. Good management recognizes and respects the importance of personal lives outside of work.

Staying in control of overtime

Clearly overtime is far from a black-and-white issue, so how can you ensure your overtime practices stay positive, fair and responsible?

- Track overtime

Employers can’t see how much overtime people work and protect against abuses or inequalities without tracking it (besides, if you’re in Europe, it’s now a legal requirement). Tracking overtime also helps employees ensure they receive rightful compensation for total overtime worked. Just be sure to choose an employee-led solution that doesn’t transfer the responsibility of time tracking to employees. Automatic time trackers are ideal for those who want accurate records with minimal effort.

- Protect your culture

Actively work against a ‘must stay late’ culture in your office, to ensure people don’t fall into overtime against their will. Make sure everyone is clear on your company’s overtime policy, and that all terms are laid out in employment contracts. Keep on top of individual employee overtime patterns (you can use tracking for this too) to ensure people are taking necessary breaks from work, and make space for quality rest.

Want to track overtime accurately with minimal effort? Try an automatic time tracker.

Read also

Is working overtime legal?

04 June, 2019 • 1 minutes to read

Failing to talk about overtime clearly can lead to confusion and distrust. But while overtime policies can vary wildly between employers, there is still a lawful and unlawful way to do it. Here’s what everybody needs to know about the law and overtime – including when working overtime isn’t legal.

Automatic time tracking benefits everyone

29 January, 2018 • 1 minutes to read

Automatic time tracking redefines the way entire businesses value and bill for their time. We break down what automatic time tracking actually is and discuss the benefits of automatic time tracking for managers, employees and business leaders alike.

Is your team workload management fair?

29 August, 2018 • 1 minutes to read

Maintaining a fair team workload is no mean feat – but failing to do so can absolutely kill team productivity and morale. This practical guide breaks down how to approach team workload management and the team management tools that help you support and enable a vibrant team of motivated specialists.