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The Bottom Line and the Sobering Truth: Without Analytics, You’re Losing Dollars with Wasted Employee Overtime

Posted by John Simpson on April 10, 2015


importance_of_overtime_analyticsAccording to Northeastern University D’Armore-McKim School of Business, Northeastern University, the workforce represents 60 to 70 percent of all expenses. The reality for most small and medium businesses is that controlling labor costs is essential for a business to be profitable, and for SMBs, this starts with properly managing employee overtime (OT).

Reducing or eliminating overtime brings hard dollars right to the bottom line. Yet, we must remember that not all OT is counterproductive. When scheduled properly, OT can help a business meet workload demands and increase profitability. However, as is often the case, OT costs can easily get out of control, which means that businesses are losing dollars with wasted OT.

It’s time for businesses to face the sobering truth – in most cases, OT is an unnecessary expense that is not realized until it’s too late. Bottom line: whatever the motivation for OT, eventually, something has to give. Business owners are spending more than they should, and while employees may benefit from the extra pay, eventually, their productivity at work and home will suffer from working long hours.

How do you get ahead of skyrocketing OT costs?

First, SMBs need access to data that is relevant before it becomes historical. At best, SMBs are typically reviewing labor costs weeks after the OT has occurred. The reports are spreadsheet based with a single number that doesn’t provide any relevant context to why the OT occurred or what can be done to control OT going forward. The end result is missed opportunities to control costs and change behaviors.It’s time for SMBs to stop looking backwards, and with OT analytics dashboards from HigherUp, SMBs can understand and reduce OT offenses during the current pay period, which means that they can put a stop to it before it’s too late. For example, they can discover in real-time:

  • Which employee is the biggest OT offender?
  • When is OT occurring most frequently?
  • Is there a time manger issue?
  • Which department is responsible for high OT?

Business leaders have long embraced the vital importance of analytics to achieve a competitive advantage. Knowing this, isn’t it time for SMBs to learn from the best in class?If those in the C-suite value their time and dollar, then it is the time for them to THINK analytics. Yet analytics alone isn’t enough. Big data can also present challenges. For example, without the right information you don’t get real actionable insights, so SMBs need to not only start thinking about analytics, but also, how to get relevant, actionable data. Our solutions are built specifically for those in the C-Suite. For example, through our user-friendly dashboards, key decision makers are provided data access, real-time understanding and strategic decision-making

Forward-thinking SMBs need the right tools and solutions to help them gain data-driven decision-making. With workforce analytics, SMBs gain the necessary insights to reveal and propose the right business questions and answers. Solutions, such as HigherUp, deliver a unified platform to enable SMBs to use the right data and stop losing dollars to wasted OT.

For more information on HigherUp solutions, please visit

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