The Cost of Paying Overtime vs. Hiring Temporary Employees

September 19, 2014 | Talent Management

While there is no such thing as having too much business, it is entirely possible to not have the support needed to manage it. If you’re relying on your current workforce to handle the overflow, your team is probably putting in some serious overtime ─ and it’s costing you a premium.

The Fair Labor Standards Act (FLSA) mandates that all overtime eligible employees must be paid time and a half for each hour worked over 40 hours during a one-week period. This means you’re paying 50 percent more for the person to do the exact same work.

3 Side Effects of an Overworked Staff

Sure, employees may not be opposed to earning an hour or two of overtime as needed. However, no one wants to be excessively overworked. If you’re relying on your team to put in serious overtime, expect to experience the following three side effects:

  1. Decreased Productivity: No matter how talented an employee is, they will reach a point when they simply can’t perform at their usual capacity.
  2. Resentfulness: When your staff is working overtime, they’re missing out on other important aspects of their lives, like spending time with friends and family. Too much time in the office can decrease morale and job satisfaction levels.
  3. High Stress: When work piles up faster than your team can manage, it’s inevitable that stress levels will increase. This can easily lead to conflicts, causing tension levels to rise.

Advantages of Hiring Temporary Workers

Ready to cut-costs and provide your staff with some much-needed relief from their heavy workloads? Consider hiring temporary workers to help out with the overflow. These professionals can work at your company as you need them, but you won’t have to keep them on when business slows down. Get the help you need now, without the costs and obligations of taking on another permanent employee.

Need a few extra hands during your busy season? Contact the experienced Charlotte recruiters at Talent Bridge. We can fill your interim vacancy whether it be temp, temp-to-perm, or direct hire. We have a “custom fit” solution that is right for you.