I have to prepare a policy for the Overtime. How we can reduce the overtime hours and how to measure employees overtime performance. If any policy & procedure is there then please share it.
From Oman, Muscat
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7From Oman, Muscat
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How many employees do you have and how much overtime is being done? What are the local rules regarding overtime? Is overtime a permanent feature? Why is overtime being done? Are production targets not being being met in normal working hours? Is there any reason for not meeting the target - production bottlenecks, slow work, or any other issue? Overtime rates are normally double the normal wage rates. The company should consider whether it is okay to have overtime or hire more staff. A holistic look by bringing all relevant aspects needs to be done.
From India, Pune
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From India, Pune
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Well, it is a good move to reduce the overtime because overtime creates a significant impact on labor costs. Therefore, it is obviously a concern for any management to restrict overtime. Before venturing into action, you need to understand the basics and the ground reality.
1. Do you have sufficient employees to undertake the day-to-day work?
2. Is absenteeism higher among employees?
3. Why does your establishment rely on overtime, and what tasks are performed during overtime?
The answers to your queries lie within the three points mentioned above. To assess employees' overtime performance, you need to analyze the amount of work completed in comparison to the labor costs incurred, with reference to the average fixed cost.
Please let me know if you need further assistance.
From India, Mumbai
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1. Do you have sufficient employees to undertake the day-to-day work?
2. Is absenteeism higher among employees?
3. Why does your establishment rely on overtime, and what tasks are performed during overtime?
The answers to your queries lie within the three points mentioned above. To assess employees' overtime performance, you need to analyze the amount of work completed in comparison to the labor costs incurred, with reference to the average fixed cost.
Please let me know if you need further assistance.
From India, Mumbai
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Thanks for the clarification.
Why is OT being done? Is it for additional work or to compensate for absentees' work? Are production targets not being met within normal working hours? We are part of the operation and maintenance department; hence, there are no production targets to meet.
Is there a specific reason for not meeting targets such as production bottlenecks, slow work, or any other issues? Usually, OT rates are double the normal wage rates, which equate to 25% of the basic salary and 50% of the basic salary on weekends, as per the law.
The company should consider whether it is appropriate to rely on OT or to hire more staff. While OT can be acceptable if reasonable, it seems that the site managers are requesting excessive amounts of it.
From Oman, Muscat
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Why is OT being done? Is it for additional work or to compensate for absentees' work? Are production targets not being met within normal working hours? We are part of the operation and maintenance department; hence, there are no production targets to meet.
Is there a specific reason for not meeting targets such as production bottlenecks, slow work, or any other issues? Usually, OT rates are double the normal wage rates, which equate to 25% of the basic salary and 50% of the basic salary on weekends, as per the law.
The company should consider whether it is appropriate to rely on OT or to hire more staff. While OT can be acceptable if reasonable, it seems that the site managers are requesting excessive amounts of it.
From Oman, Muscat
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To Mr. Prabhat,
1. Do you have sufficient employees to undertake the day-to-day work? - Yes.
2. Is absenteeism high among your employees? - Not high, but local employees frequently take leave.
3. Why does your establishment require overtime, and what work is performed during that time? - We are involved in the operation and maintenance of government hospitals, water networks, and buildings.
From Oman, Muscat
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1. Do you have sufficient employees to undertake the day-to-day work? - Yes.
2. Is absenteeism high among your employees? - Not high, but local employees frequently take leave.
3. Why does your establishment require overtime, and what work is performed during that time? - We are involved in the operation and maintenance of government hospitals, water networks, and buildings.
From Oman, Muscat
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Over time in a factory, as far as I am concerned, is a chronic sickness inside a factory. Once in practice, then it becomes a demand/deemed compulsory right of employees. From the beginning, inculcate a habit of finishing the target numbers, whether in line concept or group concept.
The overtime comes only when there is a sudden demand from the customer. In normal synchronizing flow/Kaizen line, once the cycle time is all analyzed and set, it becomes a manpower empowerment to achieve the daily goal set, unless there is an unfortunate machinery breakdown or deficiency in part numbers, which could also be avoided or diverted if proper supporting staff is made responsible. Leadership plays an important role.
Overtime influences favoritism inside the shop floor and spoils the work culture of motivated employee groups to achieve the target numbers at the end of the shift. Encourage the motivated employee group, who can achieve more than the norms by multitasking, and recognize them with appreciation/get-togethers, etc., at the end of every month.
I had an opportunity where I removed the supervisor concept for this production line. I identified one highly motivated worker made as a leader and responsible for output in a Kaizen line. The result was amazing, and it was a record both in output and line rejection!
From India, Madras
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The overtime comes only when there is a sudden demand from the customer. In normal synchronizing flow/Kaizen line, once the cycle time is all analyzed and set, it becomes a manpower empowerment to achieve the daily goal set, unless there is an unfortunate machinery breakdown or deficiency in part numbers, which could also be avoided or diverted if proper supporting staff is made responsible. Leadership plays an important role.
Overtime influences favoritism inside the shop floor and spoils the work culture of motivated employee groups to achieve the target numbers at the end of the shift. Encourage the motivated employee group, who can achieve more than the norms by multitasking, and recognize them with appreciation/get-togethers, etc., at the end of every month.
I had an opportunity where I removed the supervisor concept for this production line. I identified one highly motivated worker made as a leader and responsible for output in a Kaizen line. The result was amazing, and it was a record both in output and line rejection!
From India, Madras
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