Its does not make sense to discourage overtime, if the customer is be billed the additional cost for weekends or OT work. It equally does not make sense to ask your employees to take time off to keep their time at the 40hrs a week..when for sure they are still billing for that time worked on OT. If there is work to be done, its better to keep the techs out there working and generating repair quotes, or selling.
Originally Posted by n-e-w Jerz!
Sometimes it just comes down to they don't want you to make more they they do! I mean if you like to get the comp time off then so be it, but its not that their doing you a favor. its the other way around.
I think the problem is paying out OT that's not billable as OT. This seems to happen when companies do a bad job scheduling or they're undermanned. I'm a Union HVACR Journeyman, so OT is after 8 Hrs. or if it's billable as OT. What I mean by this is even if for some reason I only worked 6 Hrs. on a given day & I have a call that came in after 5 p.m. it's paid as OT.
Originally Posted by dlove
my company changed the ot rates to regular hour rates in order to compete with companies in our area for non contract customers and encourages us to oblige those customers. i get paid the ot ONLY after i clear 40 hours, so again i don't really see where it motivates me to go out and handle someones situation at a noncritical time(i.e. mild temperatures). i'd prefer to work 40+ hours a week, it's what i'm use to in this trade since day one!
Originally Posted by dlove
You have to pay your due's before you pay the rent!
anything over 40 is OT anytime befor 6 am or after 430 pm is OT. Sat is automatically OT and sunday is 2x regardless of how many hours during the week.
This thread could get ugly real quick. I see the way some guys think, if thats how you feel...jump ship. The grass is always greener
It's a seasonal life in Texas. Like it or not. You're going to have overtime in the summer....OR as someone else stated, heavy layoffs in the winter.
This isn't a 8-5 M/F business.
Our work week is from Monday morning to Sunday evening. On call starts at 5 pm on Friday. That way, you never have any issues as to whether Sunday was overtime or not, regardless of how the rest of the week plays out.
Technical incompetence is NOT a sales tool....
Why would any business want to reduce chargeable over time.
If your business model is based around sort of standard hour (most are) 40hours a week (really mean 30 hours chargeable), anf this rate model covers all overhead and profit requirements. Then chargeable overtime, is more profitable to the comapny, even if no premium rate is charged and premium rate is paid. At this point the difference between charge out rate and paid raid is pure 100% pre-tax profit.
The issues is, if you have poor productivity in your normal 40hours and overhead has not been covered. If this is a permanently case, then the business needs to change its business model! And that is when the Shyte happens.
I agree in general. But different companies look at it differently. A commercial company is more likely to charge their customers overtime rates after reg hours etc. A flat rate resi company is less apt to. Some resi companies do not charge extra after hours to be better able to "scoop" up new customers. Some resi companies encourage you or even require you to take non agreement customers after hours. What can also happen is that you are on OT on thursday for example and working during the day and not be able to charge OT to your customers. I am of the belief that OT is not detrimental to the bottom line if the tech is productive. Some companies hire extra techs to avoid OT where you need a bigger investment in training, trucks, inventory, healthcare costs etc......
Originally Posted by dlove
I think a lot of this comes from when people that are not from the industry get involved in the industry. People that are from this field understand this I think. A good business model is important and the best tech doesn't always make the best business owner. But I am of the belief that this industry does not lend itself well to the mega company business model and we lose something when we try to emulate that example. Kinda like the op trying to fix a nonexistent problem.
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Originally Posted by pageyjim
very well put.
but going back to the orignal question.
This is not a simple question and you can't quantify in a research paper. Its service driven and unpredictable. It must be included in your business plan but its a small piece of the whole. I think your time in research would be better spent on something else.
My question is this; what are some of the methods you use to control overtime while providing the 24/7 service customers’ demand? I am asking this question to gain ideas for further research into the subject. Thanks for whatever help you can offer!
there should be a clear policy of when is OT time ticket could be charged. ie anything that start after 5 or something. but no OT if the job start at 3 and went long.
small company has bad habit of not telling worker how the operate and what's the policy in the company. you can't anticipate for all situation, but there should be a clear guideline/practice of what to do in certain or similar situation.
should be clear policy at how the wage/remuneration/spiffs to be paid and calculated. in my office there's this big mistery of how things done. there are 3 bosses, and they sometime don't know what the other is doing or has it been done. so who do you go to to discuss stuffs?
now if you take away OT completely, I would rather start making the move to another boat. As a tech other than working a second job or doing side work OT is the chance to make extra money every now and then. so you can't take away OT completely.
how to control it? you need better scheduling and more man power. the problem is ppl don't wanna wait, and when they get OT charge they're shocked and don't wanna pay. so your receivable will baloon real quick. this business is very reactive, it's hard to anticipate what could happen.
now, if you have more man power, how do you keep that extra guy working during slower time of the year or due to idiotic weather pattern? add more sales, look for extra work, etc, now u got a big contract and need another extra man. so the problem will just circle around and round and round to no end.
Have tools and gauges, will travel.
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