Is working overtime worth it – pros and cons
Working overtime is usually shown in a context of burnout and crawling health problems that will eventually hurt the company and the employee by forcing him or her to take a longer break. But is it really a complete picture?
There is a great deal of uncertainty when it comes to working and work time. At first glance it may appear that it is all about the effects, not the time spent in the office, either productive or over a minesweeper hidden behind some Excel window. In fact, there is a significant correlation (if not causation) between the time worked and productivity.
Working overtime offers clear advantages and disadvantages – it can increase productivity, boost overtime income, and benefit employers and employees, but too much overtime can lead to stress, decreased productivity, and burnout. The key is to strike a balance between regular work hours and personal time while keeping track of overtime hours and fair pay.
Is hard work paying off?
According to the Eurostat data, the longest-working nations in the European Union (and around) are not the wealthiest ones. An average citizen of Turkey works for over 45 hours a week. An average Greek (the longest-working nation in the EU) works for 41.7 hours a week.
On the opposite side of the scale, there are the nations of Norway (33.7 hours), Denmark (33.3), and the Netherlands (30.4 hours per week). If the intuition about the connection between the long working hours and earnings were accurate, an average man from the Netherlands would be far more likely to be poor than an average man from Turkey or Greece.
And that’s not the truth, of course. The GDP per person clearly shows that the long-working employee from Greece generates significantly less value than his or her counterparts from Norway or the Netherlands. The World Bank data shows that GDP per person in the Netherlands reaches $52,447; in Turkey, the value equals $9,042.
So if the hard data clearly shows that the harder you work, the less you deliver, why is working overtime still an issue? Shouldn’t reducing the work time be a priority for the organization?
The key to understanding this phenomenon is the dissonance between the global-level data and the personal choices and experiences.
Pros and cons of working overtime
When it comes to the individual perspective, there are numerous benefits of working overtime, both for one employer and when it comes to side gigs.
Pro: You earn more money
Assuming that the employer is paying for working long hours, it is a straightforward way to get a bigger paycheck. Depending on the legal framework, the wage for additional time can be either a regular one or higher than usual. In this model, every hour more is a stream of dollars straight to the employee’s pocket – and it is the key benefit of working overtime for an employee.
Taking additional hours of work can also be a way to get more days off – it is common for companies to allow employees to take free hours in exchange for working overtime. Assuming there is an hour of overtime every day, the employee gets an additional day off every two weeks.
Depending on personal goals or preferences, it can be more beneficial to work longer hours only to take a longer break – for example for a prolonged exotic trip, hiking in the wild, or basically anything else.
Con: It hurts physical health
The main challenge with working is that most jobs today are done in a sedentary position, in front of a computer screen. Staying in this position for an hour a day longer appears innocent, especially if one is going to rest with Netflix on a couch.
The research done at Columbia University shows that staying in the same position for prolonged hours can be as harmful to the overall health as smoking. According to studies, working long hours significantly increases risks of cardiovascular disease, sleep disorders, and mental strain, confirming the negative health effects of prolonged work schedules [Source: who.int, May 2021, “Long working hours increasing deaths from heart disease and stroke”]. So, in fact, there can be a need for prolonged spare time after an extended period of working overtime – but this time it wouldn’t be voluntary.
Pro: It boosts career
Working late hours is rarely healthy (except if you are a personal trainer – lucky you!) but it comes with numerous opportunities. The late worker is considered to be hardworking, obviously. Furthermore, employers value the flexibility that is shown by staying late.
Moreover, working for long hours is an opportunity to polish skills and gain new experiences. Overall, it is not about how many years one was working in the industry or a particular position, but how his or her skill will support the company.
Working overtime can bring years of experience squeezed into a much shorter time. For a price, of course.
Con: It hurts your mental health
The cardiovascular devastation done by the sedentary lifestyle can be nothing when compared to the impact working overtime has on mental health. According to the research published by the International Journal of Environmental Research and Public Health, people working overtime were more vulnerable to suffering from depression and anxiety. Moreover, people working overtime suffer from greater stress associated with the work.
Interestingly, the research shows that taking just a bit of overtime can actually be beneficial for mental health, yet the number of hours worked cannot be excessive and taken for a prolonged time.
Pro: Better productivity for the company
There are multiple occupations where there is a direct correlation between the job delivered and the effect. A copywriter, a graphic designer, or a software developer is among the best examples. In fact, a good manager cares not whether the job has been delivered an hour before the deadline or it has been done for a week as long as the project is delivered on time. And that’s arguably the biggest benefit of overtime for the employer.
Yet there are many jobs that are done through a specific time – the employee gets paid for an endless job of accounting or analysis, for instance. And that’s nothing to be surprised by. Considering that, working longer results in more job delivered – yet another point where the paradigm of overtime meets with a common intuition.
Companies value employees who are productive – they deliver value the end client looks for. Considering that, working overtime boosts the employee’s value in the organization, securing his or her position, and improving the performance.
Con: It cuts private time
There are only 24 hours every day, and people can do nothing with it. With some time required to sleep, lost in commuting (assuming the work is in the office), and required to do some day-to-day unavoidable chores, the only time to sacrifice is personal time that would have been spent with family. For a hobby, relax or basically do anything one will.
Of course, many people love their work, so spending one or two hours overtime in the office is not that painful, but on the other hand, life is not only about working. According to the research done by Cornell University found that 30% of those polled who worked 60 hours a week or more said work caused family conflicts, and the divorce rate was raised accordingly.
Managing overtime – key elements
Working overtime comes with several risks yet delivers significant benefits. Assuming that the key element is kept, the hours are paid accordingly. And that’s not always the case. According to the data shared by the UK Trades Union Congress, UK companies benefited from up to 2 billion unpaid working hours in 2018. That translates to up to 32.7 billion British pounds of paid work equivalent.
It is popular to deliver semi-paid overtime when the company pays for a lunch or a taxi cab that transports an employee to his or her home when one stays late. Yet it is difficult to compare with a standard payment.
Want to keep overtime under control? Take a look at our time-tracking solution to help your team manage work hours efficiently and stay productive without overtime overload!
Staying in control with overtime
To find the balance between the need to deliver projects, the time worked, and the menace of stacking overtime working hours, the company needs to:
- Track time – if every employee is tracking the time, the risk of looming unpaid overtime is significantly reduced. The threat is especially true when a particular employee wills to start his or her work early yet is forced to stay for longer hours by employees who start earlier. When there are hours tracked, there is transparency and clear rules set.
- Deliver automation – tracking the time in an automated and simple way helps to spot where the time slips or where it is stacked too much. According to studies, reducing the total number of weekly work hours can improve sleep quality, reduce stress, and enhance overall well-being for employees [Source: pmc.ncbi.nlm.nih.gov, Apr 2022, “How the reduction of working hours could influence health outcomes”]. The risk of forgetting to count some hours would be reduced, and both the employer and the employee would have greater trust in the tools used.
Summary – is working overtime worth it
Working overtime can be the cause of cardiovascular diseases, mental breakdown, and broken families. But also it can be financially beneficial, a career boost, and it can be a lifesaver for the company.
It is usually up to the employee if they are willing to work overtime. If the time is counted and paid for, it can come with more benefits than risks by delivering financial security or even fun, if one enjoys his or her job.
Do not forget to visit our HR Newsletter, and if you wish to discuss the benefits of time tracking when it comes to controlling employee overtime work, do not hesitate to contact us. We will be happy to talk about that!
FAQ – Is working overtime worth it – pros and cons
1. How does working overtime affect work-life balance?
The cons of working overtime often include poor balance between work and personal life, as working long hours reduces time for rest or family. To strike a balance, you should manage overtime carefully and avoid too much overtime.
2. When should employees expect overtime pay?
Employees who work beyond 40 hours per week should usually receive overtime pay at a higher overtime rate than their regular pay. Overtime can be beneficial financially, but it’s important to make overtime voluntary and fairly compensated.
3. Why is excessive overtime a problem for health and productivity?
Working more hours than necessary can cause decreased productivity and mental fatigue. Overtime can lead to burnout, proving that working overtime isn’t always worth it.
4. Does an extra hour at work really make a difference?
Putting in an hour of overtime can help you get more work done and may improve your overtime income. Still, working overtime can also cause stress if you do too much overtime too often.
5. What risks come with overtime becoming mandatory?
When overtime becomes mandatory overtime, the advantages and disadvantages should be carefully weighed. Forcing employees to work overtime can lower morale and affect work and personal life.
6. Why do employees work longer hours voluntarily?
Some employees who are productive choose to work longer hours to gain experience and increase productivity. However, working longer than necessary can reduce the benefits of working overtime eventually.
7. Is it safe to work over 40 hours weekly?
Working 40 hours is considered a healthy standard, but once you work more than 50 hours, fatigue sets in. Studies show working 60 hours or 55 hours regularly can harm health, so knowing how much overtime is too much matters.
8. What’s the main disadvantage of constant overtime?
A key disadvantage is stress and unpaid overtime, which can influence motivation. Overtime can provide extra income, but it shouldn’t replace regular work hours.
9. How can employees avoid excessive overtime?
To avoid excessive overtime, track the number of hours an employee works and set clear limits. Employers should allow employees to accumulate rest or compensation when they work extra hours.
10. Why should companies manage overtime more effectively?
When employers and employees manage overtime wisely, they explore the advantages of working efficiently without burnout. Good management ensures overtime work can also increase productivity while maintaining work and personal life harmony.
