Trusted employees working more
Employers have been expecting employees to work more overtime over the past 12 months, according to the annual Hays Salary Guide, and that’s expected to continue.
According to Hays, one-third (34 per cent) of organisations increased overtime over the past 12 months, up from 28 per cent one year prior. Of these, 80 per cent increased overtime by up to 25 per cent. The remaining 20 per cent did so by between 25 and 50 per cent.
Of the 486 organisations surveyed in New Zealand, representing 181,000 employees, just 6 per cent managed to reduce overtime over the past 12 months.
Jason Walker, former managing director of Hays New Zealand, says there is a very good reason why overtime has increased.
“We need to look at the skills shortage,” he says. “Unemployment is at 4.5 per cent and that doesn’t include those who are underemployed. The reason overtime has increased is because employers are unable to find the skills they are looking for in the local market — but there are other reasons too.
“There’s an unwillingness at present to take a risk on marginal hires, so people who could come in to do some but not all of the tasks and require some training and development to get up to speed are seen as a risk. A lack of business confidence and uncertainty are playing a massive part in this decision process.”
Walker says when businesses are confident and people are confident, they’ll invest more and take bigger risks.
“When confidence is low, then you’re risk adverse and conservative. What that means from a recruitment perspective is that with uncertainty and business confidence being at its lowest since 2007-2008, businesses are not making calls on individuals who may not fit the job spec or skills set they’re looking for 100 per cent.
“They want people who can tick all the boxes as they don’t want to get it wrong. They’re wanting anyone they bring on to add value from day one, rather than them having to invest in that person by training them up to speed.”
Walker says that’s the biggest change in the market. “So we look at the marketplace and say ‘Wow, low unemployment and a huge number of jobs to be filled’ — but those jobs aren’t being filled for those reasons. Employers don’t want to take the risk.”
He says employers are also not sure what the impact of new employment legislation is going to be.
“So what employers are doing to get things done is to lean on their current workforce. Hence we’re seeing more overtime. They know they can trust the ability of people who have been in the business for a good amount of time.”
He says there is a productivity issue — if you can get more skilled people on board, that will increase productivity, but if you can’t, you look to your existing employees to maximise productivity.
Walker says it’s important that the employee is asked to do overtime and it’s not mandatory.
“If you’re told ‘You’re going to have to work these extra hours and it’s included in your salary and you’re not getting extra remuneration for it’, then that will have an impact on engagement levels and could have an effect on productivity.
“So it could be counter-productive to the organisation if not managed closely.
“You need to make sure that your people have the opportunity to engage with you about it as needed and if you can’t add to their remuneration, does that mean, perhaps, time in lieu, or some other benefits? It can’t be a one-way conversation from employer to employee.
“There needs to be discussion and engagement through the process.
“Assess engagement and productivity over time. Observe employees’ stress levels. Some employees get extremely stressed as they feel if they refuse to do overtime, they could lose their job.
Walker suggests that employers walk their talk.
“If a job needs to get done and you need everyone on board to work harder then sometimes you need to set the example as the boss. If you leave early, but expect your employees to stay for long hours, that’s not the best message to be giving.”
He says for employees it’s a challenging situation. “You need to welcome the dialogue around it. It’s hard to say ‘don’t be afraid to say no’, as a lot of people are.
“If you’re finding it challenging, do bring it to the attention of your employer rather than just saying ‘I’ve had enough of this, I’m leaving’.”
He says if you’ve got to that point where you’re feeling exhausted and disengaged, and if you have the energy, discuss it with your employer. “It’s all about communication. Having a dialogue. When people don’t talk, that’s when feelings become high and individuals leave.”
Walker says “You do need to look after your personal life, stress levels and health.
“You may enjoy doing the overtime but if you don’t, you need to have the conversation.
“It’s good for the employer to listen when employees approach them about this, because disengagement affects productivity.”
Some employees get extremely stressed as they feel if they refuse to do overtime, they could lose their job. Jason Walker