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How Overtime Impacts Employee Retention
When given the opportunity, workers will typically jump at the chance to work overtime. Think about the man or women, supporting a family or a new child and how being paid time and a half — or more — is an excellent incentive for them. But, finding balance is vital in allowing employees to work overtime. On the one hand, the employee and the employer both win in filling much-needed demand, but on the other hand, an employee working too much overtime can cause him or her to get burned out and de-motivated. The excitement of bringing home a larger paycheck will eventually wear off and become more commonplace as they work more hours.
In this post, we'll dive into some of the positive and negative effects of working overtime and how it affects your employee retention rate.
The Negatives of Improper Overtime Scheduling
Although most employees generally like to work overtime because a pay bonus is usually attached to it, it's important to try to even it out amongst other employees as to not put an excessive workload on one person. An overworked employee may start to have feelings of stress, frustration, and physical fatigue which may spill over onto other employees and affect their performances, too.
When your staff is under high stress or fatigue, they will not be working to their best ability, which can cause decreased efficiency and possible safety hazards. A study conducted by Cornell University showed that a week have severe work-family problems. Overworked employees also run the risk of getting sick or developing mental issues due to their lack of time to handle their personal lives outside of work. Accidents are also more likely to happen due to a deprivation of rest and focus. As an employer, you should encourage a work-life balance for your employees. Have systems in place so employees can't overwork themselves to make extra money and address any issues or signs of fatigue immediately.
A detrimental problem to overscheduling employees is the eventual decrease in the employee retention rate. Burned-out employees end up leaving their positions due to stress, health problems, or low morale, and it can easily cost your company money.
So What Are the Positives to Scheduling Overtime?
Strike a Balance with Employees
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