Paying Overtime vs. Hiring More People

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There are a couple of things to consider when deciding either to pay overtime or hire more people. Learn about paid overtime vs. hiring more people with help from a business consultant in this free video clip.

Part of the Video Series: Finance & Business Advice
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Video Transcript

Hi, my name is Alexis Guerreros; I'm a Business Consultant. Today, I'm going to talk to you about the difference of hiring more people versus paying more overtime to the folks that are already working with you. There's a couple things to consider; it's a question I get all the time. The difference really is, well, what business do you work in and what are the situations around that. If you're going to pay more overtime, it's going to be a little bit more money. Typically, what happens is that the folks who work overtime get paid one and a half times the amount you pay them for a typical hour, usually for the first 40 hours that they work. So, if you hire more person, you don't have to pay them as much. But, be careful because this person is already trained. So, you actually have to spend more time which are hours that they're working training this person on how to do a job and frankly, this person may already know how to do that pretty well. So, training is something you might want to consider. The other thing is rules and regulations in the business in which you work. There are some businesses out there that a folk, a person can actually work more than forty hours or a certain amount of alloted hours. Typically it's per shift or for the entire week; something to consider, you might want to speak with someone whose a professional in your business because frankly, there's a lot of rules and regulations around overtime. Something to consider, if they can work, maybe they need the money; maybe you have someone in mind that you want to hire. But, if there's someone whose already working in your organization, knows how to do it already and is a person that really works really hard for you and maybe can use the extra money especially around the holidays, something you might want to consider when you're hiring, giving out a little bit more overtime. Good luck with your decision.

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