Although we have escaped a recession by the skin of our teeth, the challenges facing SMEs continue
Businesses and their owners face the same cost of living pressures as their staff including energy, travel and rent. Furthermore, many are still trying to catch up from the losses during the pandemic. This is why a focus on productivity has never been more important.
It is easy to become a little lax during the good times, but now is the time to tighten our belts and our working practices.
Sharing your vision and other good management practices
We would always suggest having your staff on board with your vision and giving them an accurate understanding of how the company is performing. This is an excellent step to improving productivity.
So too is looking at job descriptions and workloads to ensure goals are achievable and that your team are not working under too heavy workloads. Regular monitoring and feedback on performance is essential. Reintroduce and monitor timekeeping and absence so you are really running on all cylinders.
Approaching overtime carefully
Of course, whilst for some industry sectors January is a quiet month after the Christmas peak, many others face additional pressures bringing in high demand for their services. Then there is the spread of common viruses which add to staff shortages and put huge pressure on resources. Overtime can provide an immediate solution, however there are aspects to be wary of.
Hours worked and pay rates
Fair Work (and more specifically your industry award) outline work hours, mandatory breaks, and statutory holiday provisions to ensure staff aren’t overworked. Employees can opt to work beyond the 38-hour limit by written agreement, maintaining health and safety standards.
According to your relevant industry award, traditionally overtime attracts higher pay rates, often determined by time of day or week. Some companies offer Time Off in Lieu (TOIL) instead of overtime payments, but clear TOIL policies are paramount to prevent issue.
Compliance with the Fair Work and/or the National Minimum Wage (NMW) regulations is mandatory, ensuring employee’s pay doesn’t fall below the legislative rates.
Type of Overtime
Voluntary overtime
If there is work available, your employees may choose to accept it in order to earn more money and maybe boost their careers with new projects. You don’t have to offer it and they don’t have to accept it.
Compulsory overtime
This is when it is stated in your employment contracts that employees must perform overtime when required. You will have come to a mutual agreement with your employees over how they will be remunerated.
Further help?
Overtime can be a good solution to an acute business problem, often being less expensive than hiring additional staff. It can add an extra layer of flexibility to your workforce which enables you to meet tight deadlines for customers or get through busy periods.
If you would like help setting up a well thought-out overtime scheme or wish to address productivity issues, please get in touch with your local HR Dept office.
