There was a time when working overtime was a thing in the corporate industry. Employees loved it and employers welcomed it with open arms. The costs involved seemed to be apparent; ‘that’s not the case. The impact of overtime working and the cost implications that come with it can take a toll on a business in ways that we are going to shed light on.

Hidden overtime costs

A flexible payroll budget makes overtime working acceptable and affordable; after all, it also serves as a motivation for employees. The costs involved are made further negligible when the need to work overtime is occasional. While these may not pose a problem, the regular need for employees working overtime comes with consequences that may not be worth it in the end. These consequences are as listed below:


Overworking leads to stress, which harms both the mental and physical health of employees. They need to rest, take care of themselves and other issues outside work in order to give their job the best they have to offer.


A working period longer than 10 hours a day make for non-conducive working environments. The longer the employees work, the more their attention spans and alertness wane. They get in a foggy mental state that harms their health.


Instead of increasing productivity, longer working hours diminish the returns of the employees. It affects their productivity both on a personal and their professional lives. Stanford University found that employees who work for 40 hours weekly get less productive when the working hours are lengthened to 60 hours weekly.


While longer hours may mean more quantity output, it will also lead to lower quality. This is an unaffordable move, especially in situations where the service standards for customers are essential. The avoidable errors and poor quality can lead to losing customers’ trust and subsequent dwindling of the company.

The role of staffing companies in helping you avoid hidden overtime costs

Whenever businesses have plenty of work, they resort to overtime as a resort to keep themselves afloat and beat deadlines. However, staffing companies offer better alternatives.

Add to the number of full-time employees you have

Irrespective of your field or industry, staffing agencies will find you workers and save you the time and effort needed to search for and hire new employees. They will take the burden of recruiting and hiring off your shoulders. You will pay for this service. But this cost is less than that which you would incur in low production that results from overworked staff.

New skills

Whenever you are undertaking new projects that require a set of skills your staff ‘don’t have, it is wiser to get new personnel with the necessary qualifications and skills. You will spend less time training your staff and get on with the project sooner than later. Staffing agencies can save you the hustle by finding you skilled personnel.

Temporary staff

A business has its peak and low periods. As a result, during the lows, the business will feel overstaffed and during the highs, it will be understaffed; despite having the same number of employees.

A staffing agency will evaluate your workforce, get you temporary or temp-to-perm employees and adjust your workforce accordingly.