Managing an Increase in Engineering Employee Overtime

Employee Overtime

An increase in employee overtime is currently impacting the engineering sector. This presents numerous challenges, particularly for the accounting teams. Adopting robust yet simple timesheet software can significantly simplify business owners’ lives. If that piques your interest, we suggest reading on.

At eResource Scheduler, we had the ambition to build a piece of software that could address all fundamental business requirements and expand from freelancers to companies. These requirements typically involve payroll, resource management, financial management, time tracking, and more.

One of the essential aspects that most of our corporate clients rely on is employee overtime tracking. In this blog, we’ll also give you a sneak peek at how a business can use eRS to manage overtime hours and simplify overtime pay calculations. First, let’s define overtime tracking and discuss why it is essential for every organization.

Why do employees choose to work overtime?

People frequently work overtime for various reasons. The most prevalent one is having strict deadlines that cannot be met during regular business hours. But occasionally, it’s also a strategy for exhibiting commitment to superiors.

The latest economic crisis has increased the amount of employee overtime, even though picking up extra work has frequently been driven by the desire to earn more money. Unfortunately, this creates many issues that businesses and specific employees must try to resolve.

Overtime management: why is it important?

Employee productivity and health may suffer greatly if employers do not utilize overtime effectively. Unmanaged overtime can lead to employee burnout, a decline in worker engagement, and a high level of turnover.

Overworking employees makes it difficult for them to get enough sleep, which affects their health and safety on the job as well as the level of quality. If the overtime is continued for an extended period of time, it may unintentionally result in a workforce dependent on overtime, which can lower productivity and higher absenteeism.

It is critical to monitor aggregate and individual overtime hours, absenteeism, and workers who take advantage of the overtime policy.

Get the situation under control.

It might be challenging for those needing more means to invest in expensive software solutions to track and calculate overtime. However, organizations can streamline and simplify monitoring overtime hours with effective timesheet software.

Maintaining compliance with all applicable labor laws and regulations is made easier with accurate time-tracking software that includes overtime functions. Getting the proper overtime pay will make your workers satisfied.

Keeping track of total working hours.

Overtime trackers are helpful in keeping track of the total working hours of employees in a day, week, or month. Use eRS timesheet management app to track employees’ overtime hours and pay them the correct overtime wages.

It also assists employees in keeping track of their overtime hours and earnings for the period. Any employer who wishes to verify that employee work hours are appropriately documented and logged should use an overtime tracker.

Calculate the overtime cost

It’s crucial to keep account of the total hours worked during a week, including holidays and weekends, to determine extra pay.

Managers multiply the overtime hours by the appropriate pay rate to determine overtime pay.

To verify that employees are paid in compliance with the law and your company’s standards, check the accuracy of any software or apps you use to track overtime compensation.

Generate timesheets and payroll.

Overtime trackers provide automatic timesheets, which aid in creating accurate payroll records. Employees’ hours worked throughout the reporting period are reported on an automatic timesheet.

Calculate regular and overtime compensation and generate payroll using the timesheet report. It also makes it simple to generate labor cost reports, allowing employers to assess their labor budget correctly.

By eliminating manual payroll processing, specific overtime monitoring software can produce payroll documents, saving time and money.

Analyzing the overtime trend

An essential component of managing overtime work is analyzing employee overtime trends. This tool makes it simple to see any substantial variations in the number of overtime hours employees put in.

Identifying possible issue areas and cost-saving opportunities is made easier with this. Additionally, it can guarantee that workers do not put in excessive hours by revealing the most productive employees.

The timesheet software ensures that your staff is working efficiently and that you are getting the most out of your resources by monitoring overtime trends.

Empower workforce

A complete worker data set puts managers at peace. This increases transparency and trust between managers and employees, allowing employees more independence and enhancing morale.

Allow overtime only when required.

There must not be a perpetual loop of overtime. Typically, the demand for extra work increases during busy seasons or when your company is experiencing rapid growth. This results in increased revenues, but if you do not manage overtime more effectively, your earnings may be used to pay employees for overtime and health care costs.

This is why matching staffing levels to demand and only permitting overtime when necessary is essential. Managers must schedule more strategically to cut down on overtime and guarantee that the right number of employees are  available when needed.


Working more hours than necessary is sometimes a response to increased living expenditures. While overtime is a regular occurrence in and of itself, it shouldn’t be missed. It puts everyone in the organization at undue risk at work and may also be quite stressful for the finance division. The right timesheet software can assist in maintaining control.

Engineering firms can control excessive employee overtime with the correct time-tracking tools, whether through automation to handle it more quickly or suppression through timesheet restrictions. The top solutions also provide a platform for managing vacation days, which can be used to identify odd employee behavior. Be aware, though, that rising living costs aren’t the sole factor contributing to constant overtime employment. Workaholism is the problem and needs to be discussed with the employee ASAP.

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