Overtime surge: Survey reveals concerning overtime trend
Published: 7 November, 2023
Overtime increased in 34% of organisations across New Zealand last financial year, according to recruitment and workforce solutions specialists Hays. Just 7% of organisations decreased overtime work.
The survey by Hays found that overtime was unpaid in 30% of organisations, while 25% rewarded staff non-financially, such as with time off in lieu. The final 45% paid staff for overtime.
Of the organisations that increased overtime, 32% did so by five hours per week on average. Another 33% increased overtime between six and 10 hours per week.
Furthermore, 66% of employers said the skills shortage has led to increased workloads for existing staff.
Of those professionals who are currently looking or planning to look for a new role this financial year, 24% cite poor work-life balance as a motivating factor and 18% cite the negative mental health and wellbeing impacts of their current role.
The hidden cost of overtime
“In recent times, it’s clear there has been an increase in the number of organisations requiring employees to work overtime,” says David Trollope, Managing Director of Hays in New Zealand.
“While a reasonable level of overtime may be expected in certain roles and industries, it should never become excessive.
“Excessive overtime can negatively impact employees’ physical and mental health and wellbeing. It can lead to stress and burnout, and adversely affect work-life balance, job satisfaction, productivity and staff turnover.
“Unfortunately, perceptions of what constitutes ‘excessive’ overtime can vary from person to person. As a result, overtime expectations differ between organisations.
“We urge employers to recognise the hidden costs of overtime and take a proactive approach to better manage it.”
To counter rising overtime rates, Hays encourages organisations to:
- Leverage tools and software to track working hours, detect overtime patterns and identify predictors of burnout
- Ask employees what they consider to be a reasonable level of overtime and whether occasional overtime would negatively impact their personal circumstances
- Encourage staff to report excessive overtime to their manager
- Use employee pulse surveys to measure employee health and wellbeing
- Review your resource model and embed agility so you can scale up for seasonal peaks without negatively impacting employee wellbeing and satisfaction
- Automate and streamline processes where possible
- Consider hiring additional temporary or permanent staff or redistributing tasks to employees with lower workloads
- Offer additional flexible working arrangements to help employees maintain a healthy work-life balance
- Encourage staff to take time off immediately before or after seasonal peaks
For further information please contact Kathryn Crowden at kathryn.crowden@hays.com.au
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