How Should HR Handle Unpaid Overtime in IT Companies? Seeking Your Advice

Dear All,

I am working as an HR Manager in an IT Company for the last 6 months. I am not satisfied with one policy of the company, which is overtime. There is an employee who spends more than 4 hours extra time in the office daily, while the normal working hours are 9 hours. He is very demotivated as he is not receiving anything in return for the extra hours. I have spoken to my boss many times, but he always tells me that this is an IT Company, and he has to finish the project no matter what, and we will not provide anything extra under any circumstances.

Please guide me on what I should do. As an HR professional, I believe this is very wrong. I need your opinions on the same.

Thank you.

Shikha,

You can consider adjusting office login-logout timings for employees who are staying beyond a particular time in the evening. For example, in my company, if an employee stays beyond 8:00 PM, the next day he/she has the flexibility to log in at 10:00 AM instead of the regular timing, which is 9:00 AM.

Regards,
Ram

Hi there,

Firstly, I would advise you to find out the reasons for which he has to stay back.

1) If the employee is slow in work or an underperformer, create action plans and PDPs to help him develop himself.

2) If he is forcibly overloaded with work, then you will have to release him from that workload if you don't want to face a high percentage of attrition.

3) If he is willingly staying back, then ask him to adhere to timings and make sure he leaves on time.

Let me know if you require any help from my end. You can contact me using the details below.

Hi Shikha,

Demotivation in companies is a regular norm nowadays, and your boss is also following the same trend. With this attitude, your company can never reach heights because a demotivated employee is equally as dangerous to the company as false policies are.

Now, if we talk about solutions to this problem, then as an HR Manager, it is you who have to talk to the management to draft some policies on such issues. If your boss is paying no attention to this problem, then go higher in the hierarchy. Don't keep silent just for the sake of your job. You are the only person who has taken up this pain to understand the employees' issues, and it is you who has to find a solution right away.

In its earlier days, our company also did not pay any overtime and wanted its employees to work late. This trend started because a few employees, for their short-term benefits, used to sit long hours, and gradually this trend was adopted by others too. A few years back, employee attrition suddenly started, and our management was unable to find a solution. Finally, we found a solution in the form of performance incentives, bonuses, vouchers, etc.

Try to find a solution yourself; otherwise, there is no way out. Or start thinking the way your boss thinks.

Roshan Pratihast Asst. Manager (HR) Email: roshan.pratihast@gmail.com Mobile: +91-9910895785 Website: S.D.Pathak & Company

Dear Friends,

We are also facing the same problem, but in our case, there are 4-5 employees who sit on a daily basis because of their workload. In fact, we have presented this issue so many times to our boss, but he always replies that we are "white-collar" employees and there is no provision for overtime for us. If they are doing overtime, then it is the demand of their profile; we never ask them to sit late.

So, after approaching so many times, I end up just listening to this. Moreover, we took one initiative where we have started providing refreshments to employees sitting after 7:00 in the office.

Friends, kindly provide some valuable feedback so that we can break this trend, as employees reaching 10:00 at night do not get time to spend with their families, which induces frustration and demotivation among them.

Regards,
Rachna

Hi,

These are professional hazards and can't be avoided. Let the employee decide for himself rather than you deciding for him. It's good that you are doing your job honestly by showing your concern for him, but this is how IT works.

Ask your boss if the employee can be given compulsory time off in lieu of the overtime. That's the best that can be done, but overtime is not typically given in IT, I guess.

Late working has become a culture in many organizations. Late working is an accepted norm in many places, and somebody leaving the office at the scheduled time is looked at as if they are committing some crime. Answers to the following questions may lead to some answers/solutions:

• Late working beyond 8 hours is a perennial or occasional phenomenon?

• Is late working specific only to some departments/bosses or throughout the organization?

• Do all employees have a full 8 hours of work to do? Is work well distributed among all available resources, or are there some who have to slog while others enjoy?

• Is there a practice of whiling away time in the morning and noon and starting real work in the evening?

• Are you short of manpower?

• Is your workforce inefficient/slow in working?

• Are there any direct or indirect benefits of working late? (Direct Benefit - Overtime Payment, Indirect Benefit - Better Increments, Better growth, More responsibility, etc.)

• To conclude, employees will work beyond 8 hours if they are treated equally and fairly and only if they have enough motivation. Working beyond 8 hours has to be either a universal culture throughout the organization, and not specific to some individuals/particular department or working beyond 8 hours has to be an occasional phenomenon due to work exigencies.

Thanks & Regards

Dear all,

The work culture and working hours are always centered around the human capital in any organization, be it IT or not. In a manufacturing line, the workers bear the brunt of heat, dust, noise, and pollution. For every job, there are professional gray areas in any department. If an individual works long hours beyond the stipulated hours, the issue is more on the company's top management policy design and policy review concerning HR management and related issues.

It is good if a person willingly spends longer than required in their work. It shows that there is more scope for job satisfaction. On the other hand, whether working more or fewer hours, all of us need to balance work and personal life in any field, irrespective of title or organization one works for.

All the successful senior members in corporate and personal lives would surely agree that more work or longer hours do not cause harm or kill anybody. It is the negative side of not being able to balance or cope with the problems that arise.

It is generally seen that during relaxation hours, the correct ways of relaxing or renewing the mind and body energy are not adhered to, even at the minimum level. It is observed with the upcoming and so-called youth that they spend their energy and potential on the negative side. Therefore, it is not the long hours of work but the inability to cope up that is bad and a real problem.

Thanks and have a nice day.

V. Rangarajan.

Late sitting is majorly misused in organizations for overtime. Generally, people often sit late the whole day to show they are overburdened with loads of work in hand and make it a practice of late sitting to impress bosses and earn overtime. (A case generally seen)

Now, please review as said by Mr. Thankar above and conclude that above all, it is you who have to balance and be in harmony with both the organization and employees.

Regards.

Hey,

I completely agree with Madhav. Once we know the reason for him staying for longer hours, we can figure out the solutions easily.

If he is overloaded with work, then overtime or some kind of benefit has to be given to him.

Dear Shikha,

The suggestion which Mr. Reddy and Mr. Gupta have given, my understanding also falls in the same. Firstly, check his way of working. Is it that only because of his way of working he has to stay late? Because, the same person I have noticed in my company as well. After judging him, I decided that it's only because of his slow way of working and making long intervals in his work that he stays late.

If you need to approach me, below are my details:

Romi Tiku
Mobile No: 9871196842

Dear Shikha,

You are the only person in your organization to take up this issue and find a solution. First, you should study the reasons for why employees need to work beyond normal working hours, why management purely relies on the existing team members, and if there is any manpower shortage.

You have to clearly explain to your boss the impacts and outcomes that will be faced from the Labor Department for not paying any overtime payment. According to the act, if any employee works beyond normal working hours, the management needs to pay double wages for that period. If the management is not in a position to bear this cost, try to explore alternative measures like offering Compensatory Offs.

Eventually, I advise you to reiterate to your boss about the statutory obligations.

HR_Venki

Staying late at the office is the most undesirable phenomenon in India and, I think, in most of the third world countries. You are safe, secure, and in the good books of top management if you are working late and reaching home by 11:00 p.m. Top management says that is the demand of the job profile, and there is no provision of overtime for white-collar workers. This problem persists in most small companies and even in some big companies.

I have a question: about 90% of our workforce is working in the private sector, and the top management of the company should create an atmosphere where every employee can complete his/her work in the stipulated 8 or 9 hours. If there are five working days in a week, I feel starting work in the evening and relaxing in the regular working hours is the main problem for top management in private companies.

I really appreciate Shikha for raising such an issue which generally has become a part of every professional. I preferred the solution provided by Mr. M Reddy. It was very correctly stated that we need to analyze the actual causes of overstaying and take action accordingly.

Shikha, you need to perform the same activity and discuss it with the management. Otherwise, it was rightly quoted by some gentleman that it can become the responsible factor for a high attrition rate, for which ultimately you need to work out later on.

Regards,

Deepak Jain

Dear Shikha,

I couldn't agree more with Adil Mehdi because he has correctly depicted the situation. In India, people find it fashionable to start work (real work) in the evening and stay till late. It gives them a false impression of being very valuable to the organization. I have a couple of observations:

1. It is a misconception that IT companies make people work very late. Most of the big IT companies have a very well-defined work hour policy, and even if an employee has to stay back because of the project deadlines or anything else, they are suitably rewarded either in terms of money or in terms of leave or in terms of flexi logging hours. It is only small and medium-sized companies that make people work more than what they are paid for. And, if that is the situation in your organization, then be ready for high attrition rates.

2. If your employee who is working late is slow, then training, counseling, or mentoring are some of the options.

3. White-collar and blue-collar differentiations are for literature's sake. You need to adhere to the permitted hours of working (legally), and if that is exceeding, you are legally bound to suitably reward your employee. Show your boss the relevant labor act coupled with some empirical data on work hour policy from some of the well-known IT companies. That may move your boss a little bit.

4. Work-life balance is the key to success. Tell your employees to work smart and fast and not hard (only).

Regards,
Team GroupHR

Shikha,

We are wholly responsible for the problem of overtime. No company has ever forced his employee to work late night or to extend his/her shift beyond normal hours. Only once in a while, when the work pressure is high we have to sit late hours but company take sufficient care for it say by providing dinner or tiffin or home drop. E.g. in accounts dept, employees have to stay late hours during auditing or during year closing but not the entire year.

There is a saying “Greed is the root of all problems”. In order to impress their superior's people stays in the office for late hours. They have a greed for good appraisal/ promotions etc. Seeing one person staying late hours, others follows the same path.

There should be strict rules not to work beyond your normal official hour unless strictly received written emails from your seniors.

There was an article written by Narayan Murty saying that people take much longer time in correcting their mistakes on Monday morning which they have created by sitting late on Saturday evening.

In order to overcome this problem we have to change the mindset of all people that you are not going to be benefitted by working extra hours. Company will normally say that employees are paid for accomplishing the task rather than how long it took for him/her to do the work. So we (Employees) have to decide how to maintain a balance between the personal& professional life. Putting extra effort is a positive sign but not extra hours.

Thanks & Regards,

Usha

Shikha,

I highly appreciate your concern towards employees. I am also an engineer working in the IT industry, where the environment remains similar to any other IT company. These types of problems can be solved by self-discipline as well as some support from the company.

I do not suggest overtime payment in IT companies as many employees would misuse it by extending their work hours. Instead, everyone should commit to working only during official working hours. In the case of staying late, the concerned manager has to send an authorized email for the extended stay with a reason. In this scenario, both the manager and employees will be disciplined. Please remember, if a person exceeds 48 hours of work in a week, then you have to pay them overtime.

So, instead of overtime pay, you can provide compensatory offs for the extra effort spent.

Also, make sure to provide basic facilities like snacks, beverages, etc. It is important for employees to have flexibility in working hours, considering that late stays are sometimes inevitable.

I believe you have received many other useful suggestions from others.

Thanks,

Praveen

I have a doubt.

Now, if an employee is willingly staying back late because he schedules his work as such, the company (referring to an IT company) has to arrange for cab services for them and in some cases provide meal vouchers if they stay back really late. Talking from an employer's perspective:

I would not want any employee to stay back unless it's required because it adds to my operational cost - lights, air cooling, electricity, etc., and also the cab service charge. These services are provided for employees to cope with their workload, not work preferences.

Also, in case the employee does not use company facilities and commutes in his/her own vehicle, how can an employer judge the reason for staying back late - totally ruling out workload and pressure. (I am assuming here that the cab service in place of bus shuttle could be a reason for staying back late.)

Looking forward to your comments and perspectives.
Nisha

• Ms. Nisha has raised a very valid query.
• I feel management should come out with a policy which discourages late working. Obviously Late Working can be allowed only for genuine reasons and with the approval of authorized person. In short employee can not decide on their own about staying late, either they will have to be asked by authorized person to stay back or they will have to seek permission to stay back.
• Management has to make it amply clear to supervisors, officers and managers that, they are expected to mange their subordinates and department in a such a way that, work is completed in a scheduled time only and late working is occasional and on case to case basis with proper authorization.
• Top Management should seek a monthly / quarterly report from HODs on Late Working with Justification.
• Not giving cab and other facilities to employees who are staying late without authorization will also discourage and stop, such practices.
• Secondly, organizations culture is also important, management should encourage punctuality, efficiency and not pseudo loyalty of late working. (I came across an employee who never used to stay late even during work pressure and stiff deadlines, stayed late thru out the week. Later it came to light that his wife and entire family had gone out of station and he was all alone, he used to stay back only to have dinner at companies' cost)