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Overtime in NZ business increasing, more than half go unpaid

Thu, 15th Jul 2021
FYI, this story is more than a year old

Overtime increased in 29% of organisations in New Zealand over the past 12 months, with 51% of staff unpaid for their extra hours, according to a new report from recruiting experts Hays. 
Based on findings in the recruiter's FY21/22 Hays Salary Guide, just 13% managed to decrease overtime over the past 12 months.

Of those organisations that increased overtime, 31% kept the average weekly additional hours to less than 5%. A further 40% increased overtime by between 5 and 10%, while 26% increased it by 10 to 20%. The final 3% saw overtime rise by more than 21% of the standard weekly hours worked.

“Last year, tight budgets forced employers to try to achieve more with less as they navigated their way through the crisis and back to growth,” says Adam Shapley, managing director of Hays in New Zealand.

“But rising overtime is not a sustainable solution, especially when we know that further pressure will be placed on workforces in the year ahead," he says.

Shapley says seven in ten employers say skills shortages will impact the effective operation of their organisation or department in the next 12 months.

“According to employers, one major impact of the skills shortage will be increasing workloads for existing staff," he says.

"This is a dangerous indicator for employers, who risk their employees' engagement, retention, and physical and mental health when overtime becomes excessive.

The solution to rising overtime
As for how to reverse rising overtime rates, the employers Hays spoke to have an idea.

 “One of the main factors behind today's skills shortage, they believe, is a lack of people gaining the necessary qualifications or experience,” says Shapley.

“Encouraging more people to gain the qualifications and skills in demand and offering apprenticeships, traineeships, graduate programs and entry-level roles can help organisations overcome the skills shortage in the long term and, in doing so, reduce pressure on existing teams," he says.

“In the meantime, employers could revise their sourcing strategy to attract skills in demand – whether they wish to add a new permanent team member to relieve the pressure on existing staff or a temporary candidate to assist at times of peak workloads," Shapley explains.

“It's also important to offer genuine work-life balance initiatives so that employees can focus on their health and wellbeing after periods of lengthy overtime.

The Hays Salary Guide is based on a survey of close to 600 organisations and more than 500 skilled professionals in New Zealand.

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