An overtime management system is a solution for tracking and monitoring worker overtime. They have become prevalent because they help to ensure that the organization is abiding by the employee working hour rules and regulations set by the government.
Moreover, they help to keep track of the maximum overtime frequency limitations, which is highly essential. Excessive overtime can result in occupational burnout, decreased productivity, increased absenteeism, higher stress, health problems, and many more problems.
According to a 2020 report, 25.5% of developers often worked beyond their working hours for at least 1-2 days per week or more. The overtime work frequency isn’t limited to developers. It extends to multiple profiles. The drawbacks of working overtime include. But these are not the only reasons for implementing such a system.
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What is an Overtime Management Software?
An overtime management software is a system or solution for tracking the worker’s check-in and check-out durations. It measures the total working hours in a day and the frequency of excessive clock-out timings.
What is Overtime Frequency Limitation?
Companies are required to set total weekly and monthly working hours for their employees. A time tracking system incorporates these guidelines and includes the maximum overtime hours and the total number of times an employee can work beyond the specified hours. The cap on the total working hours is referred to as the overtime frequency limitation.
How Are Overtime Hours Calculated?
Overtime hours are calculated by summing the total daily and weekly working hours. The working hours beyond the fixed timings are referred to as overtime hours and help to curate overtime payments. Traditionally, registers and logbooks were a medium for calculating the check-in and check-out timings, which helped to calculate the overtime hours, too.
However, they were prone to human error, misreadings, and wrongful entries, which resulted in higher overtime payouts. So, RFIDs came into the picture. Unfortunately, they are susceptible to proxy attendance, often fail to work, require frequent re-registrations, and remain unreliable sources of managing the worker’s check-in and check-out logs.
Today, face recognition systems with integrated liveness detection, geolocation, geofencing, and other features have become the most reliable solutions to calculate overtime hours. They require the physical presence of the worker in front of the system and remain highly secure as they are spoof-proof and tamper-proof.
4 Reasons to Have An Overtime Management System in Your Organization
Optimizing Workforce Schedules
An effective overtime management solution can assist in giving essential time off to employees and schedule worker timings accordingly. The timestamp management software can curate accurate overtime frequencies and even help to avoid unnecessary overtime logs, resulting in higher worker productivity.
Reduction in Working Costs
Companies have a limited working fund, which they need to align to streamline business operations. Unfortunately, excessive overtime can result in higher payouts, which is seen across industries, especially manufacturing, security, hospitality, education, and home care. An overtime management software can assist in creating a balance between labor demand and expenses.
Adhering to Compliances
As mentioned earlier, organizations must abide by government and state laws to prevent excessive overtime. Failure to follow the compliances could result in legal issues and penalties.
An adequate time and attendance management solution can assist in managing overtime reports and curating working hour patterns. Such an automated system would bring transparency between the employees and the organization. It will enable employees to perform at their optimal level and avoid the drawbacks of excessive overtime.
Improves Worker Satisfaction
Making schedules with necessary time offs for workers who have reached their overtime frequency cap can help to distribute the workload effectively and result in higher productivity.
Another secondary advantage of such an environment is that it will result in increased job satisfaction for the employees, resulting in lower attrition rates. As a result, the organization will flourish with higher employee strength in the long run. As mentioned earlier, an overtime management solution can assist in curating effective schedules, which can help in achieving all these benefits.
Conclusion
Overtime management software has become an essential part of workforce management. They assist in curating time and attendance reports, which specify employees who regularly do overtime and take lower time offs from the organization.
However, the government and state bodies have specified the maximum overtime limits for a reason. Excessive overtime causes stress, health problems, lower productivity, and many other drawbacks. Companies must abide by these laws for the worker’s welfare and avoid hefty penalties and legal issues.
An overtime management system helps organizations comply with these guidelines and even offers other benefits. It assists in creating effective worker schedules, enhances worker satisfaction, and reduces working costs.
Biocube’s TruNtrance and CCTV-based attendance systems are two solutions that can achieve these advantages and more. Schedule a demo with us to learn more about it.