Best Practices to Manage Construction Overtime

by Jan 22, 2020

More work hours mean more work gets done. Does this sound familiar? At least this used to be the generally accepted fact. But studies have shown that this isn’t the case. In fact,the more overtime hours worked, the more the decrease in productivity. This was confirmed in a study by CNBC – that productivity takes a nosedive at 50 hours of work. Overtime can have a huge impact on the construction business, and managing it effectively is quintessential in this highly competitive market, especially if you’re operating on razor-thin margins.

Hold Fewer Meetings
Meetings are important, but sitting in a meeting for an hour to give a two-minute status update is not productive. Instead of relying exclusively on status meetings, make better use of time with the help of digital work management, task management or shared project tracking tools. You need not lose a good chunk of their workday that could have been spent accomplishing real work.

Track Employee Time
Does overtime stem from staffing shortages, poor allocation of resources, heavy workload or an employee who has extra time on his and wants the extra pay? With a big-picture of time spent and its allocation to different projects, construction managers can make informed decisions regarding resources and overtime. Tracking employee time allows managers to see and address patterns at the individual employee level when it comes to overtime.

Plan in advance
Every builder gets a job or a project that has the potential to run longer than expected, resulting in overtime pay for employees. It is always better to plan well ahead.

Communicate your expectations clearly
One of the best ways to get a handle on overtime is to improve communication with the employees. Make expectations clear to employees, train managers and employees on expectations, and nip in the bud any employee habits of not recording overtime.

Give employees the right tools
Using emails and spreadsheets is perfect for communication and budget management but inefficient when it comes to assigning tasks, tracking project status and accessing information promptly. Effective construction CRM software for builders like InSimplify can help construction managers who are trying to stay on top of costs, keep employees happy and reduce paperwork.

Cross-train employees
Overtime becomes an issue when certain workers can only do certain jobs. This can produce a disparity of overtime if extra time is required for a particular job and not the other. By training employees to handle more than one job, you can boost your company’s flexibility and reduce overtime costs.

Take control of your team’s schedule
Manage contractors schedules and allocate jobs in real-time. With the right management of your team’s schedule, turn workaholics into well-balanced workers.

Automating your sales process and employing good construction management software can help your business reduce paperwork, improve productivity, and maximize profits. Even a tiny improvement in your efficiency and accuracy will have a huge impact on your bottom line, and you can’t achieve these results unless you replace manual methods with a more efficient system.

Often, construction projects need extended hours of overtime and weekend work. If this is properly controlled, it can be beneficial to the project and the employees. But the problem is that some projects get into the habit of overtime. Unnecessary overtime kills employee productivity and reduces your company’s efficiency.