The Impact of Overtime on the Organization

 

The Impact of Overtime on the Organization

Over the years, a paradigm was created in organizations that: the more hours the employees or the company worked per day, the better their productivity would be.

But what exactly is called Overtime?

It is about the period of time worked that goes beyond the normal working hours of each employee.

Brazilians work, on average, 18 overtime hours per month. It is not without reason that this topic needs to be known in depth, in order to demand a complete guide like the one we have developed for you. By law, for the calculation of overtime, the company must consider an amount that is at least 50% higher than the value of normal working hours.

It is important to stick to the contract and the Collective Agreement, which takes precedence over the CLT, to ensure the correct percentage defined in agreement with the worker and the union.

Types of Overtime:

In order for you to better understand what overtime is, let's go to the different modalities or the main types established by CLT and their particularities.

1) Daytime Overtime: Daytime overtime is the most common and concerns the case of professionals who exceed the normal day shift on weekdays.

2) Overtime at night: The night working day, according to article 73 of the CLT, corresponds to that in which the work is performed "between 10 pm of one day and 5 am of the following day".

3) Overtime on Weekends and Holidays: When the weekend is set as a rest day, the entire working day can be considered overtime. The same goes for the holidays.

4) Extra Hour Intrajournada: The intraday break “is the rest time that workers have in the middle of their day for food and rest, also known as lunchtime”.

This break is provided for in most journeys, and is no longer mandatory only for those who work up to 4 hours a day. For those who work up to 6 hours a day, the intraday period is 15 minutes and, for those who work longer, it can take up to 2 hours.

Differences between overtime and hour bank:

There are employers who still think that the more time their employees spend working, the better. However, time dedicated to service is not necessarily synonymous with productivity.

For this reason, understanding the reasons behind frequent overtime work is a strategic decision. This is because overtime results in an increase in workers' remuneration, which can end up weighing on the company's payroll.

Organizations that are already concerned with at least this financial part find in article 59 of the CLT the provision for the possibility of adopting the hour bank regime. Therefore, it is necessary that the parties reach this decision through the Convention, the Collective Agreement or an individual labor agreement.

The hours bank makes room for overtime hours worked to be compensated with hours of rest and not with additional pay. Thus, those who work overtime on one day can leave earlier on another or even use the balance to increase their holiday or vacation period.

05 main points of the harm of overtime for a company:

1) The Danger Of Companies Confusing Productivity With Production: Companies have high production due to seasonality and market demands and end up exceeding their hours for the production to be delivered. However, do companies know their productivity? Organizations may be producing with low productivity so they need extra hours.

In short: Before thinking about overtime, let's know our productivity? That way, we don't raise the cost of our product!

2) Reduced Use of Regular Hours: With the increase in working hours, resulting from overtime, the employee does not have the same income the following day, due to the extended workload of the previous day. This directly impacts the health of the employee, who did not have the necessary time for adequate rest.

3) Anxiety, Stress and Quality of Life of Employees: Studies show that anxiety and stress problems have increased considerably due to work overload. Mental health disorders can also appear as depression.

In addition, these problems can overcome the work barrier, leading to family conflicts arising from the little time dedicated to the family, where the time spent working could be spent with family members.

4) Increased Absenteeism and Medical Leave: The dissatisfaction generated by long working hours can increase absences and sick leave requests. That is, absences and delays on the part of employees who are not satisfied with the journey of the companies. That many times the employee financially needs to opt for this modality instead of a resignation.

Requests for sick leave and sick leave tend to increase, mainly for reasons of mental and physical health.

5) Company Turnover: Companies that maintain this culture of long working hours live with another problem, the turnover of entrances and exits in organizations.

Provoking a vicious circle, so that those who leave leave their activities to other employees of the organization. Which need to do more to absorb the increased workload until the new employee is replaced.

The frequency of this practice ends up impacting the company's turnover, generating more costs in hiring, training and dismissal processes.

More and more companies are seeing the benefits of a more balanced process, caused by the reduction of costs so that problems like the ones mentioned above do not occur. In addition to problems that can lead to labor claims before the employer.

The end result is a more efficient and productive process for the company, and the employee with a dignified quality of life. To facilitate the management of overtime, guarantee the rights of employees and avoid lawsuits and fines for the company, it is necessary to have good technology to monitor the journey of each worker.