The proposed changes to the Fair Labor Standards Act (FLSA) have prompted many businesses to reappraise their time tracking and task management practices for salaried employees, and with good reason. Acting quickly on the potential impact of these revisions to overtime compensation is crucial from a financial standpoint, with managers needing to take a global look at their organizational structure and better strategize work processes for eligible employees.
Here are a few ways to begin thinking about a compliance initiative when determining how your own company could be affected.
Who in your organization has eligibility?
The annual salary threshold for mandatory overtime payments is to be set at $50,440 and below. Your first step is to identify all workers who fall under this salary range, and then implement an accurate time management system to track the individuals who are consistently working more than 40 hours a week. Note recurring trends – are there a couple of salaried staff members who are always the last ones to leave at the end of the day? Those are the associates that you can use as the basis of your strategies moving forward.
What are people doing that puts them into overtime?
Identifying common causes for overtime can give you a better understanding of any issues that impede performance and keep associates at work after their scheduled shift. By getting a complete view of each individual’s daily and weekly task allocations through a workforce management system (WFM), you can determine if a set workload is too great for someone to reasonably accomplish in a given amount of time. Alerts will even tell you the instance when their projected timelines creep over 40 hours. From there you can use the software functionality to explore options available for a better balance of responsibilities across all the people on your team.
Are the right people doing the right jobs?
There are certain tasks that must get completed each day, and a finite number of workers with the right skills to perform them – a common reason for the accrual of overtime hours. The question is, are the most qualified people always assigned to the right processes? Even if they are, can another person perform the same duty up to the necessary standards with less cost to the company?
What WFM technology gives you is a visual understanding of the correlation between the actions that need to be performed and the qualifications of each employee, as well as the duration in which they need to be completed and the available hours each associate has at their disposal before going into overtime. Aligning your task allocation and scheduling through a reliable WFM solution ensures that there is a way to complete high-priority business functions regardless of how the availability of your resources may need to fluctuate.
The result provides balanced coverage of each process with fewer instance of overtime for team members, helping companies better adhere to their labor budgets. At Empower, we feel this is an important goal regardless of the FLSA, as it results in a happier work/life balance for team members, and management with better control of their business processes and financial planning.