We have discussed ways in which businesses can prepare for proposed revisions to the Fair Labor Standards Act (FLSA) that would more than double the salary range for overtime pay eligibility. As employers wait for the outcome of this legislation, we are left with a lingering question: Should it really take the threat of government compliance to encourage a more strategic approach to your labor administration?
The U.S. Department of Labor expects millions of salaried workers to be eligible for overtime pay if the FLSA proposals pass in their current form, a number that emphasizes the need for quick action. From our perspective, those are millions of people who deserve the opportunity to be better managed, utilized, and engaged through a workforce management system – one that has equal benefits for their employers.
Offset expenses and retain talent through optimization and engagement
Employee retention and career development is vital for maintaining productivity and company health, and is an initiative that can be easily addressed through a comprehensive WFM system. However, there have been concerns that personal development may be affected if companies are required by the FLSA to award time and a half pay to those earning under $50,440. Middle management positions, for example, can often be within the upper end of that salary threshold – so will their potential for higher overtime compensation diminish these roles at some companies? Not with the right approach.
A WFM system allows you to automate many tasks that take up so much of these manager’s days – such as scheduling and time off requests – providing a drastic reduction in possible overtime hours. You can even support the advancement of all employees by generating balanced career development plans that align with the company’s forecasted growth. There are also global engagement opportunities to promote retention through mobile communication and collaboration tools, public recognition/kudos systems, easy access to personal resources, and more.
We can account for these revisions already
Our own workforce management (WFM) technology was designed to give managers greater precision in optimizing schedules across all internal departments. This functionality is used every day to control costs, and will be able to handle the same type of labor planning your organization may require if overtime pay becomes mandatory for a larger portion of your workforce.
As a rule, EmpowerWFM protects against possible overtime instances by giving you the visibility to better align work processes to those individuals with the skills to complete them most effectively, then alerts you if their commitments start pushing them close to 40 hours. You can then reorganize schedules in real time so that associates with similar qualifications, and less accumulated hours, can complete the same processes. In terms of maintaining your labor spend in spite of a potential FLSA overtime spike, it’s already covered.
Future-proof your workplace
Those with a WFM solution already benefit from having the tools needed to streamline their current operations, and evolve with any future legislation. That adaptability will always be there, and if you are considering adopting a software solution to prepare for possible FLSA compliance, we suggest you don’t wait much longer. Get cued up for implementation now, as any many organizations will want to have their systems ready in early 2016, and any significant lapses in time could see penalties quickly add up.
As a provider of human resource and workforce management (WFM) solutions, we have seen the measurable impact that implementing a unified approach to time & attendance, scheduling, and task management has had on the labor spend for our clients – regardless of what new rules have been enacted.