Monday, December 21, 2020
Let’s say you manage a small business and a loyal staff. You’ve done your research and set a fair rate for each employee’s wages, yet you’re losing money and not keeping payroll within budget. The problem? Oftentimes, it’s overtime. A payroll company like Accually in Ft Lauderdale can help you mind productivity and avoid incurring overtime expenses. Keep reading to learn more about why overtime hours hurt your budget – and what you can do to correct it.
A Payroll Company Can Help You Curb Overtime Hours
Anytime an employee works more than 40 hours within a given workweek, they are technically working “overtime.” By law, you may need to compensate for those additional hours at a higher rate, such as “time and a half.” Understandably, this rate increase can cripple your budget if your employees are taking advantage of it. Set an overtime “cap,” which restricts the number of hours you are required to compensate at the overtime rate. For instance, you may concede to pay overtime for working more than 40 hours but fewer than 50, with 50 hours indicating the cap. A payroll company in Ft. Lauderdale can help you navigate the specific laws in play so that your budget is both legal and logical for your business.
Manage Time Better And Have Realistic Expectations
Maybe your employees aren’t merely greedy for more pay – maybe they’re inefficient. Assess time management in your workplace and troubleshoot why project deadlines consistently exceed regular work hours. If productivity is deficient, provide time management training, and set clear deadlines, including incremental checkpoints, to monitor progress and motivate employees. However, if your employees instead are efficient workaholics, then the problem lies in your unrealistic demands. Split project loads across a few different employees, or table one task to accommodate a time-sensitive one. If you can help it, don’t set expectations that might require bleeding out into overtime.
Cross-train Staff Or Hire Seasonal Help
If you find that only a couple of your employees consistently incur overtime, they may be overburdened with job responsibilities. You can correct this by cross-training other staff members to pitch in with those job responsibilities, so long as the responsibilities are not outside their purview. Be careful not to abuse an employee’s eagerness to take on more work by underpaying them. However, having a few “pinch-hitters” on staff can help fill in those gaps when employees fall ill or take a vacation. If your staff experiences a cycle of busy seasons in which many employees work overtime, your payroll company in Ft. Lauderdale may recommend hiring seasonal staff. You may save money hiring additional help rather than compensating for several weeks of overtime.
Consulting with a payroll company in Ft. Lauderdale can help you tie other loose ends of your budget besides excessive overtime. Contact Accually and get expert advice, tools, and training for all your small business needs. More than a payroll company, Accually is the accounting ally and virtual CFO of every small business in Ft. Lauderdale. Contact us today!
Questions? Get in touch with us!