Paying Overtime is Parasitic
Overtime work may be a boon to laborers, but it can be a burden for businesses. The increased wage per extra hour decreases the net value of the company’s product or service because the labor cost rises while the selling price remains the same. In addition, the time taken from the employees’ individual lives impacts their long-term effectiveness in the sense that they have less time to take care of their well-being. Paying overtime may boost operational production, but it can cripple a company on the strategic level. It’s like cancer disguised as a cure.
What, then, is the best replacement for requiring overtime work? There is none. It is archaic, obsolete – it should be removed.
In CHAPPS, there is no need to allocate overtime pay, no need for workers to go beyond their regular schedule, no need for an alternative tactic to offset unmet deadlines. The system introduces different shifts that utilize all operational hours. Productivity per day is maximized to the fullest. CHAPPS is the cure.
CHAPPS: Clockable Hours Application Process and Pay System
Shift schedules that overlap is often the cause of inefficiency. Manpower gets queued up, as all available resources are in use by one shift of workers. Until that shift ends, the next shift-group sits idle and will have to extend their working hours in order to meet deadlines and quotas. Their employers will need to pay the extra hours plus the overtime premium as stipulated by labor laws. This practice is problematic for both parties involved.
Acquiring more resources can be a solution for this conundrum, but it requires businesses to spend valuable capital. Another more unpleasant way is the laying-off of staff to reduce overtime expenditure. The downside is that skilled talent is difficult to replace and time-consuming to train-and when the need for extra industry becomes great, no reliable workers will be left in the labor pool.
A third option is to streamline the shift schedules. With CHAPPS, there are three 8-hour shifts (termed as tours) spread evenly to cover each 24-hour day of the entire 7-day week. In addition, the system introduces the Four-in-a-Box scheme wherein the three tours will each have four employees assigned (manpower can be scaled to meet production needs if necessary.) The setup will always have one employee off-duty, while the other personnel remain on duty. This table illustrates the scheme:
CHAPPS’s rotation of human resource maximizes efficiency and ensures consistent production without the need for workers to go on overtime. CHAPPS is flexible to the specific parameters of any business. CHAPPS eliminates the burden of paying overtime. CHAPPS is the solution.