What is overtime management software?
What is overtime management software?
Overtime management software is a tool designed to streamline and optimise the process of tracking and managing employee overtime within an organisation. The software can automatically record when employees work beyond their allocated schedule, ensuring accuracy and compliance with employment laws and company policies.
By providing real-time visibility into overtime hours, it enables businesses to proactively address potential scheduling issues and oversee a healthy work life balance for their workforce. Managers can also more easily monitor employee costs with this added insight and improve overall workforce productivity.
Features of overtime management software
The features of overtime management software can vary depending on the specific product or provider, but some common features include the following.
Time tracking
The software enables employees to record their work hours accurately, including regular hours and overtime, using various input methods like manual entry, time clocks, or integration with other systems.
Overtime calculation
It automatically calculates overtime based on rules and regulations defined by the business, considering factors such as hours worked, overtime thresholds, and applicable pay rates.
Real-time monitoring
Managers and administrators can monitor employee work hours and overtime in real-time, allowing them to address scheduling issues promptly and prevent excessive overtime.
Compliance and policy enforcement
The software helps ensure that overtime policies and employment laws are adhered to, avoiding potential legal issues, and ensuring fair compensation for employees.
Reporting and analytics
Reporting capabilities built into the software, provide insights into a company’s overtime trends, labour costs, and employee performance, helping managers make data-driven decisions.
Integration with payroll systems
Overtime data can be seamlessly integrated with payroll systems, simplifying the process of accurately compensating employees for their extra hours.
Employee self-service
Employees can access their time and attendance data, check overtime balances, and request time off, fostering transparency and empowering them to manage their schedules efficiently.
Notifications and alerts
The software can send automated alerts to managers and employees when overtime thresholds are reached or when scheduling conflicts arise.
Customisation and scalability
Overtime management software can often be customised to suit the specific needs of different industries and scaled to accommodate businesses of various sizes.
Mobile access
Many solutions offer mobile apps, allowing employees and managers to access overtime-related information on the go.
How it can help a business to improve their organisation
Implementing overtime management software can help a business improve its organisation in various ways. Let’s look at them in more detail.
Enhanced efficiency
The software automates time tracking and overtime calculations, reducing manual errors and saving time for both employees and HR personnel. This streamlining leads to increased productivity and allows resources to be allocated more efficiently.
Cost control
With real-time monitoring of overtime hours and associated costs, businesses can identify areas of potential excess spending and take proactive measures to control labour expenses.
Avoidance of legal issues
Overtime management software helps ensure that the company adheres to employment laws, as well as internal policies regarding overtime. This reduces the risk of compliance-related penalties and legal disputes.
Optimised scheduling
By having a clear view of employee work hours and overtime, managers can make informed decisions when creating schedules, avoiding overtime where possible and ensuring adequate coverage during busy periods.
Improved employee satisfaction
The software allows employees to have transparency over their work hours, overtime balances, and time-off requests. This transparency fosters trust, improves morale, and promotes a healthier work-life balance.
Data-driven decision making
Robust reporting and analytics capabilities provide valuable insights into workforce patterns, helping businesses make data-driven decisions to improve operations and resource allocation.
Improved productivity
By effectively managing overtime and ensuring employees are not overworked, businesses can maintain a healthier and more motivated workforce, leading to improved productivity and quality of work.
Integration with payroll
Integrating overtime data with payroll systems reduces manual data entry and eliminates the risk of payroll errors, resulting in more likelihood of accurate and timely compensation for employees.
Adapting with the business
Overtime management software can scale to accommodate the growth of the business and can be customised to suit specific industry needs, making it a versatile solution for different organisations.
Case study: Helping ISTOBAL with overtime management
Established in Valencia, Spain, in 1950, ISTOBAL specialises in vehicle wash and care solutions. It has maintained its family-owned status across three generations, while operating as a multinational group with over 900 skilled professionals. Including 10 subsidiaries plus four manufacturing and assembly plants strategically located across Europe, the Americas, and Asia, ISTOBAL has built a global presence. ISTOBAL delivers products and services tailored to the demands of the automotive, transport, and mobility industry. The company collaborates closely with major national and international oil companies, as well as numerous car and transport related brands.
The Challenges
After completing a report to comply with the EU Directive 2014/95/EU (Non-Financial Reporting Directive — NFRD), ISTOBAL realised some changes were needed. At the time, each subsidiary was using a different local payroll provider. Instead of such logistical complexity, they wanted new global software to simplify reporting and information gathering, to support day to day operations plus audits and NFRD. The solution would need to meet the following criteria:
- Perform the payroll process at the local level.
- Provide monthly visibility of employee data, including overtime management.
- Establish standardised payroll reports to guarantee 100% reliable data.
- Ensure compliance with the General Data Protection Regulation (GDPR).
- Enable the Finance Department to access accounting data and payment files while safeguarding sensitive information.
The Outcomes
In December 2019, ISTOBAL partnered with us to roll out ADP Celergo, facilitating efficient multi-country payroll management. A year later, in December 2020, ISTOBAL signed an agreement to also implement ADP iHCM, a comprehensive solution that combines global payroll and HR functions. This extension encompassed all ISTOBAL subsidiaries, encompassing locations such as the United Kingdom, Denmark, Austria, Sweden, Italy, Portugal, China, and Brazil.
Today, ISTOBAL managers and HR staff can automate previously time consuming, paper-heavy processes and easily keep an eye on employee data. This includes tracking promotions and pay rises, through to managing overtime. Meanwhile, employees are empowered by being able to access the cloud-based, mobile-compatible system and easily view their information such as hours worked, payroll or benefits. The solution also further strengthens ISTOBAL’s GDPR compliance.
“ISTOBAL carries out a huge number of tasks, and these solutions allow us to automate processes, reduce the administrative workload and cut back on using Excel files to manage processes. Thanks to these solutions, we can make better decisions, guarantee that information is transparent, standardise data more easily, and improve our response times to internal and external (audit) regulation changes.”
- Begoña de Torres, ISTOBAL Human Resources Department
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