Almost two-thirds of employers have taken steps to reduce the amount of paid overtime at their organisation, according to the latest research from XpertHR. A key theme running through the survey findings was that employers are trying to reduce the cost of overtime, mostly through better managing the process.
XpertHR's survey received responses from 100 organisations, of which 93 have at least some employees entitled to overtime pay. Overtime pay is more likely to be available to manual workers (in 80% of organisations), than non-manual workers (55% of organisations). Organisations also use other ways to determine who is and isn't eligible for overtime pay, for example by specifing that it is not available to anyone of a managerial level or above, or to those earning more than £30,000 a year.
Rates of overtime pay also vary according to when in the week it is worked. The most common arrangements are:
- Monday to Friday - time-and-a-half;
- Saturday - time-and-a-half;
- Sunday - double-time; and
- Bank holidays - double-time.
Respondents told us that on average a fifth of their workforce regularly works overtime, with the remainder doing so less frequently. But this can still represent a significant cost, leading to a concerted effort among respondents to reduce the amount worked, with a host of initiatives adopted. The first port of call is to install tighter managerial controls, cited by three-quarters of respondents, followed by organisations that have introduced new shift patterns and changed working practices.
Full survey findings are available here to XpertHR subscribers [£].