--- title: Take a Closer Look at Overtime description: A look at the costs and the benefits of where overtime hours are going in your organization. image: https://blog.stargarden.com/hs-fs/hub/425286/file-1565942775.jpg --- [![StarGarden](https://blog.stargarden.com/hs-fs/hub/425286/file-1451547908.png)](https://www.stargarden.com) - [StarGarden](http://www.stargarden.com) - [Contact](https://stargarden.com/Contact) - Products - [HCM](https://stargarden.com/StarGarden-50) - [Essential HR](https://stargarden.com/Essential-HR) - [Benefits Management](https://stargarden.com/benefits-management) - [Organization Management](https://stargarden.com/organization-management) - [Employee Demographics](https://stargarden.com/employee-demographics) - [Balances & Accruals](https://stargarden.com/balance-accruals) - [Compensation](https://stargarden.com/compensation) - [Extended HR](https://stargarden.com/StarGarden-HCM/Extended-HR) - [Recruitment and Applicant Tracking](https://stargarden.com/recruitment-and-applicant-tracking) - 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[Government](https://learn.stargarden.com/government-solutions-whitepaper-download-0) - [Education](https://learn.stargarden.com/education-solutions-whitepaper-download) - [Health](https://learn.stargarden.com/healthcare-solutions-whitepaper-download) - [Unionized Industry](https://learn.stargarden.com/unionized-labor-solutions-whitepaper-download) - [Cross Border](https://learn.stargarden.com/cross-border-whitepaper-download) # Take a Closer Look at Overtime [Marnie Larson](https://blog.stargarden.com/author/marnie-larson) July 4, 2014 at 12:16 PM ![date-62739_1280](https://blog.stargarden.com/hs-fs/hub/425286/file-1565942775.jpg?width=255&name=file-1565942775.jpg)     If your organization is regularly paying overtime, you will likely benefit from taking a good look at the ***costs*** and the ***benefits*** of where those overtime hours are going. **The Costs** According to an article on [Snelling.com](http://www.snelling.com/Client_Resources/The_Real_Cost_of_Overtime/), overtime hours in manufacturing increased sharply during the 1990s (48%!) and have remained high.  For many, it has become a way to “make ends meet.”   While the obvious cost of overtime hours is the higher pay rate compared to regular hours, the Snelling article points out another costly downside:  Too much overtime can lead to fatigue, which in turn can lead to illness or injury, which, of course, lead to increased absenteeism.  All of which have an impact on the company’s productivity, and in turn, the bottom line. **The Benefits** On the other hand, in some instances there is a clear cost benefit to overtime. [SWPP.org](http://www.swpp.org/winter-2013-on-target-newsletter/the-overtime-lie/)reports that in certain situations, overtime (despite the higher rate per hour) can actually be a cost-effective solution.  The article explains that, in call centers with seasonal spikes in customer demand, staffing correctly is tricky.  In this case, overtime hours can be cheaper than regular hours when factoring in: - the fixed costs of benefits associated only with regular hours - the cost of paying workers who are idle,  - the trade-off of understaffing and sacrificing opportunities to connect with customers. **Track Your Overtime** In large companies and government entities, overtime is often used routinely on an as needed basis, and often there is no accountability or way to track its impact.  When budget cuts need to be made, overtime ***can*** be a good place to look, but you need to understand when it is essential and when it is not.  Your HR software should provide the data you need to make good strategic decisions around overtime pay. If you are interested in some more great articles and tips, sign up for our monthly newsletter [here](http://stargarden.us3.list-manage1.com/subscribe?u=1af551a6606e15b24d90a9954&id=e6da3a1eee). [Overtime](https://blog.stargarden.com/topic/overtime) ## Related Posts ### [September 10, 2024 at 9:07 AM Take a Closer Look at Overtime](https://blog.stargarden.com/take-a-closer-look-at-overtime-0) ### [June 10, 2026 at 10:00 AM Overtime Isn't a Staffing Problem. It's a Visibility Problem.](https://blog.stargarden.com/overtime-isnt-a-staffing-problem-its-a-visibility-problem) ### [May 21, 2024 at 9:00 AM Savouring Success: Tempting Talent, Nurturing Happiness](https://blog.stargarden.com/tasty-options-tempt-new-hires-and-keep-your-employees-happy-stargarden-hr-software-0) Find us in Canada, USA, and New Zealand Phone: 800-809-2880 [Email: info@stargarden.com](mailto:info@stargarden.com)   - [About Us](https://stargarden.com/about-us) - [Our Team](https://stargarden.com/our-team) - [Services](https://stargarden.com/Workflow) - [Products](https://stargarden.com/StarGarden-50) - [Resources](https://stargarden.com/hcm-management) - [News & Events](https://stargarden.com/news-and-events) - [Ebooks](https://stargarden.com/hr-ebooks) - [Product Videos](https://stargarden.com/hcm-demo-videos) - [Blog](https://blog.stargarden.com/) - [Contact Us](https://stargarden.com/Contact) - [Subscribe](https://stargarden.com/newsletter-subscription) - [Get a Quote](https://stargarden.com/Contact) © 2026 All rights reserved.