Overtime Hours

The number of overtime hours is higher in organizations with low productivity rates and almost nonexistent in organizations with high productivity rates. As productivity rates improve, the number of overtime hours drop. Improved productivity means the organization is producing more with the same resources.

The root cause of overtime is due to poor planning. Those organizations with high productivity rates have good planning in place, and those with low productivity rates generally do not plan at all. It is hard to do any planning unless without quantitative data to use as the basis of a plan. Those organizations with low productivity rates are generally reacting to things hitting them right in the face.