In many workplaces, overtime is seen as a necessary way to meet competing deadlines or manage workload surges. Some organizations view overtime as proof of an employee’s commitment to the company. But the long-term implications of extended working hours are detrimental to individual employees and organizational efficiency.
Productivity – how much quality work an employee gets done – is not the same as how many hours an employee works. Ironically, working more hours reduces productivity for many reasons. Good mental health and physical well-being are the base of any productive employee. Breaks and rest restore well-being and allow employees to perform their best.
Employees working long hours cost organizations more than just the overtime pay. Consider the negative effects of overtime on employees and why managing these effects is critical for maintaining a productive and healthy workforce.
The effects of overtime on productivity
1. Decreased efficiency
The intention behind overtime – to increase productivity – often has the opposite effect. Research from Stanford University showed overworking actually leads to decreased total output. Productivity per hour declines after employees work more than 50 hours a week and is even worse after 60 hours. For example, based on calculations, productivity during 60-hour weeks would be less than two-thirds of what it was for a 40-hour week. As productivity declines, individual performance declines. This contributes to lower overall team output and starts to affect project timelines.
2. More errors, accidents and safety risks
Extended hours also contribute to more errors and accidents on the job. One study from the Occupational and Environmental Medicine Journal showed working in jobs with overtime was associated with a 61% higher injury rate. In fact, working 12 hours or more a day meant a 37% increased hazard rate and 60 hours per week meant a 23% increase. An injury on the job obviously stops productivity, but increased errors also cause productivity problems for other team members who have to pick up the slack or spend time fixing mistakes.
3. Higher absenteeism
Higher rates of overtime lead to higher rates of absenteeism as employees try to address their overwhelm and stress. Employees who call out sick from work can’t produce. Unplanned absences cause problems for team members who have to find ways to complete work when their colleagues are out. This causes a cascading effect, hurting productivity for the entire team and leading to even more overtime.
4. Increased turnover
Higher overtime contributes to employee turnover because overworked employees often start to look for a new job. According to research by McKinsey & Company, unsustainable workloads were a major driver for the Great Resignation that took place after the COVID-19 pandemic shutdowns. Companies that attempt to continue producing the same amount of work with fewer employees inevitably lose even more productivity as employees quit to preserve their well-being.
5. Greater health risks
Working overtime also correlates with health problems, including a higher risk of cardiovascular disease like increased blood pressure, obesity and diabetes. The World Health Organization (WHO) found working long hours is a significant health hazard. Workers who work 55 hours or more a week have a 35% increased risk of stroke and a 17% higher risk of dying from ischemic heart disease. Employees who are sick are more likely to suffer from burnout, call out more often or simply be unable to work, all of which affect productivity.
6. Poor mental health
Chronically high stress levels and burnout from long work hours also affect mental health and emotional well-being. Anxiety and depression often arise from the overwhelming demands of excessive overtime. A report from the National Institutes of Health showed employees who report working 60 hours or more are 1.4 times more likely to have depression and 1.66 times more likely to have poor mental well-being. Many overworked employees increase their alcohol consumption, which also contributes to poor mental health outcomes. Creating a supportive work culture helps prevent mental health issues and keeps productivity up by fostering work-life balance.
Increase productivity without overtime with ActivTrak
Overtime can be a tool for managing workloads and deadlines, but organizations must recognize its negative effects on employee productivity. Leverage ActivTrak’s productivity management software to increase productivity without asking employees to work overtime. The advanced workforce analytics platform gives you insights to balance workloads, enhance well-being and optimize productivity across your organization. Whether you manage a hybrid or remote workforce, our solutions give you the visibility and actionable data to support informed decisions and foster a healthier, more engaged workforce.
Join the 9,500+ customers who trust ActivTrak to help their teams achieve their full potential. Contact our sales team today to get started.
