How not to cut overtime costs


This company buys a big competitor, which means IT has to integrate several divisions -- and that, in turn, is requiring lots of overtime, reports a pilot fish on the scene.

"At least they were paying overtime, even for contractors," fish says. "They also brought in real dinners and put people up in hotels when necessary.

"Then management decided that overtime costs were way too high. New policy: Overtime will only be paid after an additional two hours are worked during the week, with a minimum of four hours for working overtime on weekends.

"I guess the idea was to catch the people who stuck around only a short time or popped into the office to check on a run during the weekend.

"The result? Pretty much as soon as the two-hour mark was reached -- and the free meal consumed -- the building emptied out. There were obvious groups of people who had an hour or so of work who stuck around chatting until they hit the two-hour mark.

"The quick weekend pop-ins also ended, and people actually started taking their lunch hours. Not management's brightest idea..."

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