Overtime Versus Temporary Labor: Where The Benefits Lie

Although the recover is occurring with boosts from temporary labor, benefits such as overtime are creating a roadblock for the creation of jobs while still aiding those currently employed.

The return of overtime is slowly increasing the dollar amount on otherwise low-waged checks while still helping employers bust out products and services in a timely manner. However, this is preventing the need for additional workers therefore eliminating potential job openings.

Business Execs are saying that advancements in overtime may be the most efficient way to approach the tentative economy while still dealing with the increase in demand. It allows for sufficient aid for areas with higher customer orders without the hassle of finding new hires and dealing with attached benefits. In addition, if business slows, cutting back hours is easy.

Those adding overtime versus more workers claim that it acts as a motivational tool. Employees want a bigger paycheck and will more likely be more productive. By merely adding pockets of overtime here and there, worker attitude shows improvements resulting in increased productivity. Those in health care services benefit from overtime the most since temporary workers are hard to add in such specified areas.

Still, others believe temporary labor is a better choice. Sophia Koropeckyj, managing director of Moody’s Economy.com says, "Since overtime is more costly than straight time, there comes a point that it makes sense to take on new workers.” She even noted that machinery and fabricated-metals sectors began adding jobs 18 months after they started increasing overtime.

The healing of the economy is partly due to the increase in temporary labor. More workers means more gets done, usually. Additionally, its easy to add or remove temps when needed because insurance and other benefits are not typically attached. With overtime these may come attached and create unwanted fuss.

Companies are beginning to evaluate whether or not its more cost effective to add overtime or hire new workers.