Blog Post

Managing Approaching Overtime Calculations with Scissortail

Published on

December 21, 2021

Rhonda Rush

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How would your payroll forecast change if you knew who was going to hit overtime before it actually occurred? 

As you begin the fourth day of each payroll week, imagine receiving a report telling you who among your team members has already worked four days’ worth of hours in a five-day week. How would you react?  Would you send the team member home early or ask them to come in late the next day? Using integrated Time and Labor Management from Scissortail, we are able to look at and report on hours as employees approach overtime. 

It’s said that small daily changes add up to huge long-term results. If that’s true, how much money could you save your organization by reducing or even stopping the overtime your department is costing the company?

For Example:

Think about a manager of 10 employees each making about a $20 hourly rate. 

Three of those employees consistently take a half hour lunch instead of an hour lunch and by the end of their 3rd workday each week, they are already at 29.5 working hours. If the trend continues (and nothing more), these three employees will end the week with 2.5 overtime hours each. Multiply that by 3 and your team has just cost the company 7.5 hours at an overtime rate of $30 per hour or $225 in overtime pay. Over the course of a year, these employees have cost the company $11,700 in overtime. 

It doesn’t seem like a lot in the grand scheme of things but when you add that to other departments with similar scenarios, you have about that salary of another full-time employee. 

Now, if these three employees are accomplishing BIG tasks during that time this could be a great investment. However, can that really be true all the time? Probably not. 

Here’s a sample of some at-a-glance charts based on the Scissortail approaching overtime report. 

Graphical user interface, chartDescription automatically generated

These charts are a great example of what many upper managers are requesting. 

Managers can quickly see which cost center is the main offender in the overtime costs category without having to sift through a bunch of line items and compare back and forth. 

If you had this information at your fingertips, you could make some immediate, strategic decisions.

With Scissortail, you can schedule this calculated time report to be delivered to the managers proactively allowing them that opportunity to better manage their teams.

If a manager’s team has nothing to report, then that manager doesn’t get a copy of the report. On the other hand, if a manager has at least one person who’s approached what you’ve established as the overtime threshold then that manager receives a copy of the report.

What would you do if you could predict the future of your payroll with this kind of accuracy?

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