Professional Documents
Culture Documents
The Inefficiency of Overtime PDF
The Inefficiency of Overtime PDF
Presented to:
Time Budgets and Beyond: The Timing of Daily Life
International Association of Time Use Research
32nd Conference, Paris France, July 2010
Mark Ellwood B. Comm.
President, Pace Productivity Inc.
Toronto, Canada
www.GetMoreDone.com
Be consistent with external schedules (e.g. train schedules, car pooling, or night time
courses)
Avoid stresses elsewhere. (For some, the attraction of work occurs when work becomes
like home and home is too much work)
BACKGROUND DATA
While workers today complain about long work hours Juliet Schor estimates that 20th and 21st
century work hours are actually considerably lower than in the mid-nineteenth century. During
this period artificial lighting stretched the workday into the night. Combined with the pressures of
emerging capitalismthe longer workday and the expanding work-year increased hours
dramatically. Whereas I estimate a range of 1,440 to 2,300 hours per year for English peasants
before the seventeenth century, a mid-nineteenth-century work in either England or the United
States might put in an annual level of between 3,150 and 3,650 hours.
Assuming a 52-week year with no vacations, this translates to 60.5 hours to 70.2 hours per week.
A 40-hour work week today, including two weeks vacation and ten statutory holidays translates
to 1,920 hours per year.
During the 20th century, with the rise of unions and more regulated workplaces, hours of work
generally decreased. Deborah Sunter and Ren Morissette show this trend below, noting how
hours of work dropped massively from the beginning to the late 20th century.
Overall U.S. macro statistics show that hours have not changed dramatically over the last thirty
years. The table below shows work hours remaining in the range of 38-39 hours per week.
This might seem surprising to employees who are required to work at least 40 hours and who
have seen an increase in their overtime hours. The data blends full time and part-time employees
together.
TABLE 1 HISTORICAL WORK HOURS
Total
Women
Men
1976
38.4
34.1
41.4
1977
38.5
34.2
41.6
1978
38.7
34.4
41.8
1979
38.6
34.4
41.7
1980
38.3
34.4
41.2
1981
37.9
34.1
40.7
1982
37.7
34.0
40.6
1983
38.1
34.4
41.0
1984
38.6
34.9
41.5
1985
38.9
35.2
41.8
1986
38.9
35.3
41.9
1987
38.8
35.3
41.8
1988
39.3
35.7
42.2
1989
39.4
35.8
42.4
1990
39.3
35.8
42.1
1991
39.1
35.8
41.9
1992
38.8
35.6
41.6
1993
39.3
36.0
42.1
1994
39.1
35.6
42.1
1995
39.2
35.7
42.2
1996
39.2
35.7
42.2
1997
39.4
36.0
42.3
1998
39.2
35.9
42.2
1999
39.5
36.2
42.4
2000
39.6
36.4
42.4
2001
39.2
36.1
41.8
2002
39.1
36.1
41.7
2003
39.0
35.9
41.6
2004
39.0
35.9
41.6
2005
39.1
36.1
41.7
2006
39.2
36.2
41.7
2007
39.1
36.1
41.6
2008
38.8
36.1
41.2
SOURCE: Current Population Survey, U.S. Department of Labor, U.S. Bureau of Labor Statistics, Non-Agricultural
industries
However, what the table above does not show is that in the last three decades, there has been an
increasing polarization of work hours. Whereas in the past, production employees targeted
3
towards an ideal 40-hour work week, today, more employees work part-time, more work long
hours and fewer work a 40-hour week.
The following table shows how the share of managers (i.e. a subset of all knowledge workers)
working more than 40 hours has increased.
Chart 1: Share of Managers Working 49 Hours or More Per Week
Source: Bureau of Labour Statistic, Issues in Labour Statistics, Are Managers and Professional Really Working more?
Around the world, there are a number of countries where the incidence of long work hours is
higher than the U.S. Note that these represent a mix of employees or self-employed workers.
Source: International Labour Organization (ILO), Working Time Around the World (ILO and Routledge 2007), pp 46 51.
Understanding long term trends in overtime work is difficult because data usually blends part
time and full time employees to determine a composite work week. It also blends employees
from traditional production industries (manufacturing, mining, transportation) with knowledge
workers (sales reps, managers, clerks).
The focus of this paper deals with knowledge workers. For the most part, these are employees
and self-employed individuals who do the majority of their work in offices, as opposed to
production lines, farms, mines, etc. Their work might include a portion of travel to customer
locations. Some also do a portion of their work from home-based offices. The main distinction of
knowledge workers versus manufacturing workers is that, on the whole, they are not doing work
that requires a physical effort of moving or making things. They are selling, managing, planning,
engineering, providing service, administering, counting, recording, etc.
Data for this study is derived from Pace Productivity Incs proprietary database of 311,711 hours
of real time data recorded on a portable electronic device called a TimeCorder time tracking
system. 3,600 participating employees usually tracked their time on this device for two weeks.
See Appendix 1 for methodology details. Data is from 1990 to 2010.
Time of day data is based on a subset of the main database. Results are based on data from 268
participants, all of whom worked more than 50 hours per week. 60,075 individual time stamped
events were examined data from 2004-2010.
MAJOR FINDINGS
Employees can be classified into categories based on the number of hours they work:
Under 30
30 40
40-45
45-50
50 60
60 70
60-80
80 +
Part time
Undertime
Full time
Extra time
Overtime
Excess time
Extreme time
Danger time
Hours
Per
Occasions
week Per Week
1990 - 1995
1996 - 2000
2001 - 2005
2006 - 2010
467
1017
1408
1079
47.6
45.2
46.1
48.4
261
144
167
117
All Years
3971
46.7
159
2. With greater seniority comes longer work hours. Length of activity also increases with
seniority.
Among full time employees who generally work five days per week, municipal workers generally
only work 42.5 hours per week. Some of these are unionized workers with contracts that specify
the number of hours. The other jobs that are lower than the average of 46.7 hours per week do not
have a travel component. Employees stay at one location. Those who are above average have
greater responsibilities, more travel, and more people management components to their jobs.
The chart below shows two scales; the blue bars are work hours per week. The scale for the
maroon bars is in minutes. The bars represent typical durations, showing how long each event
lasts. Those who supervise employees have longer work hours and occasions than those who do
not. Consultants are an exception. Unlike most other employees, their income is directly related
to hours worked they have a different incentive from employees to work long hours.
70
60
50
40
30
20
10
0
ReceptRetail Outside
ion /
Clerical Banking Sales
Asst.
Sales
Rep
Municipal
Worker
Inside
Sales
42.5
43.6
44.6
45
45.5
11
10
14
19
President /
VP
Univ.
Faculty
48.5
48.7
48.8
50.6
54
54
59.7
17
22
38
24
35
33
32
Middle
Field
ConsultManSuperant
ager
visor
Sales
Mgr
Female
Male
20%
15%
10%
5%
0%
30-40
40-45
45-50
50-60
60-70
70-80
Though women work fewer hours in employed work, they then go home to engage in what Juliet
B. Schor calls the second shift the duties of housewife and mother. Grocery shopping, picking
up the children and cooking dinner take up the next few hours. After dinner theres clean-up,
possibly some additional housework, and, of course more child care.
Pace Productivitys own study of mothers time (Time Trade-Offs Among Busy Mothers, 2002)
show a work week that consists of 43.3 hours of paid work plus 28.2 hours of child care, and 10.8
hours of household maintenance for a total work week of 82.3 hours.)
10
10%
8%
6%
4%
2%
0%
0
10
11
12
13
14
15
16
11
17
18
19
20
21
22
23
6. Employees are able to achieve greater concentration, before and after regular hours.
Concentration can be measured by the duration of tasks how long each one lasts. The greater
the interruptions, the shorter the duration. The average duration among those who work overtime
is 22 minutes. (Note that the average among all employees is just 15 minutes those in more
senior positions who tend to do more overtime hours have longer durations.)
There are not many activities that occur very early in the morning or very late at night. However
when they do occur, they tend to be quite long. Early morning events tend to be the longest.
Before work from 5:00 a.m. to 8:00 a.m., durations are 34-39 minutes long. During the regular
day (9-5) they average 22 minutes. Around lunch time, activities are longer because lunch breaks
take longer than short phone calls, etc. Afternoon events are slightly shorter than those in prelunch hours. Then, late in the evening, the length of events picks up, but only to 30 minutes, not
as long as the early morning hours.
Duration of Tasks Throughout the Day - in Minutes
60
Duration in Minutes
50
40
30
20
10
0
0
10
11
12
13
14
15
16
17
18
19
20
21
22
23
selection of activities that a large number of time study participants have tracked. The table is
organized from lowest to highest activities at the top of the list are more prone to being done
during overtime hours. (The grey bar separates those that are above and below the average.)
Those at the top where much of the work is done during overtime tend to be more administrative
and less customer-focused. The one exception is Special Projects, which is not an administrative
task. When work on this high priority activity can be done alone, overtime represents a
productive time to do it.
Sample Group: Those working over 50 hours per week
Selected Activities
Team meetings
Miscellaneous Emails
Meet with manager
Management Meetings
Planning the day
Time Sheets
Internal phone calls
Special projects
Internal Communications
Personal Training
Administration / Paperwork
Call Reports
Safety Compliance
Emergency customer response
Voice mail listen / respond
Account Administration
Reading
Branch Administration
43%
50%
55%
57%
59%
59%
60%
60%
60%
62%
63%
63%
64%
65%
69%
70%
70%
71%
57%
50%
45%
43%
41%
41%
40%
40%
40%
38%
37%
37%
36%
35%
31%
30%
30%
29%
42%
42%
13%
42%
25%
16%
34%
38%
34%
28%
25%
16%
35%
17%
23%
26%
12%
17%
16%
9%
32%
1%
16%
25%
6%
2%
6%
10%
12%
21%
1%
17%
8%
4%
18%
12%
Coaching / mentoring
Business travel
Miscellaneous
Sales prospecting calls
Supervision
Quote preparation
Marketing
Generate / manage leads
Credit Applications
Customer phone inquiries
Sales meetings with prospects
Internal Meetings
Personal time
72%
73%
77%
78%
79%
80%
84%
85%
86%
88%
88%
88%
89%
28%
27%
23%
22%
21%
20%
16%
15%
14%
12%
12%
12%
11%
15%
21%
17%
11%
2%
9%
5%
7%
7%
5%
8%
10%
4%
13%
6%
6%
11%
18%
11%
10%
9%
7%
7%
3%
2%
7%
13
Selected Activities
89%
92%
94%
96%
11%
8%
6%
4%
8%
5%
5%
3%
3%
3%
0%
1%
ALL ACTIVITIES
72%
28%
19%
9%
The biggest spike for team / department meetings is between 8 and 9 a.m.
Email sessions peak at 60 minutes on Sundays versus just 25 minutes during the week.
The biggest hours for handling miscellaneous email are 6-8 a.m. representing 21% of all
the time on this activity
Planning happens as much on Sunday as any other activity (2% of the total week). On
those occasions when it occurs, planning is very long 130 minutes versus a typical 10-15
minutes during the week. The peak times for planning are 8-10 in the morning.
Professional reading is never done on the weekend. Those who take materials from the
office expecting to read them at home either conduct other work activities first, or do
none at all.
Management meetings tend to occur between 7 a.m. and 10 a.m. They are longest on
Wednesdays, peaking at 115 minutes versus 30-90 minutes on other days. Fridays are the
shortest at just 30 minutes
Coaching sessions occur later in the day than other activities, peaking at 2:00-3:00 p.m.
Prospect meetings peak between 10 and 11 a.m. Prospecting calls occur mostly between 9
and 5, dropping off at noon for an hour. Longest times for calls are at 9, 3 and
surprisingly 8 p.m. when calls lengthen to 13 minutes versus only 10 minutes the rest of
the time.
Customer phone inquires are above average on the weekends, representing 11% of the
time. They tend to peak between 10 and 11 in the morning most days.
when branches are closed. However, these tend to be the shortest occasions. Averaging
only 10 minutes versus 12-16 minutes during weekdays. Of these, Fridays are the longest.
Though a greater number of walk-ins occur on Monday and Tuesday. Mornings are busier
than afternoons.
There is a spike in returning voice mails at 9:00 a.m. Although those who work overtime
come in early in the morning, they tend to wait until everyone else is in to call them.
Customer service meetings skew towards the afternoon from noon to 3 p.m. Weekend
activities are very rare.
Emergency responses have the largest weekend component. Fully 25% of the time spent
on emergencies is done on weekends.
Miscellaneous activities occur 8% of the time on the weekends, slightly above average.
Meetings with ones manager regarding performance tend to fall outside normal hours.
These often occur between 6 and 8 p.m. These one-on-one meetings are conducted in the
relative quiet of after hours, reflecting on the events of the day.
Quote preparations never occur on the weekend, perhaps because other internal
departments are not available to provide input and support. It is often difficult to prepare
complicated quote on ones own.
Time sheets are often done on Saturdays. While the frequency of events on Saturday is
low, the time spent for each event is high. Saturday time is 13% of the total
The biggest day for generating and managing leads is Monday (31% of the time). Activity
drops off considerable all the way through Friday (14% of the time.). Sales reps who are
re-energized after the weekend get off to a strong start each new week. Perhaps they
intuitively recognized that Friday afternoons are a time of lighter work, and hence do not
make their calls at that time.
The exception is special projects. They tend to get done early in the morning, more than
almost any other activity except for team meetings and emails.
15
Client / Customer Service - These are activates that clients pay for.
B) SUPPORT / SECONDARY ACTIVITIES
Client Administration - These activities occur just prior to a sale being made and just after.
They include preparing quotes entering orders in the system, and setting up clients. All of the
behind-the-scenes activities are included here.
Internal Operations - These activities advance a sale or customer service. Production activities
occur here, for instance.
Miscellaneous - These are activities that do not show up anywhere else. They are business
activities that did not appear any where else on participants list of activities to track. They might
fit into any one of these major categories.
16
With the three classifications, we examined time use data from 1990 through to 2010, classifying
1,760 activities into one of the 11 major categories. Then these categories were re-grouped into
those that are priorities, those that are supporting activities, and those that are non-supporting
activities. In the latter case, these are necessary parts of the job.
17
14
12
10
8
6
4
2
0
30-40
40-45
45-50
50-60
60-70
Administration
7.3
7.7
10.4
11.2
14.1
70-80
18.8
Customer Service
6.1
7.8
10.4
9.3
11.1
Client Admin
6.3
6.6
4.8
3.6
Selling
5.6
6.4
6.3
6.2
7.8
4.3
3.7
5.6
Planning
2.2
3.1
3.3
4.1
8.1
Management
1.8
2.6
3.4
5.3
8.1
5.9
Miscelleneous
2.8
2.2
2.5
2.6
2.6
0.3
Internal Operations
1.9
2.1
2.3
3.5
4.2
1.8
Travel
0.6
0.7
1.4
2.8
5.5
6.8
Personal Time
With overall increased hours worked, most categories show an increase. An exception is client
administration. Activities in this category are usually done by employees who have no incentive to
work long hours. Those at more senior levels in the organization, who usually work longer hours, do
not have client administration as a main task.
18
30-40
40-45
45-50
50-60
60-70
70-80
Primary Activities
16
19
21
26
30
33
Non-Value Added
12
13
16
18
24
36
Supporting Activities
11
11
11
12
12
As shown in the chart above, time spent on high priority activities increases as more hours are
worked. But so does non-value added time, at faster rate. Meanwhile, supporting activities are
constant until extreme hours are worked, at which point they begin to decline.
19
20%
15%
10%
5%
0%
Monday
Tuesday
Wednesday
Thursday
20
Friday
Saturday
Sunday
10. Work done on Fridays by those who work overtime drops off versus the other days in
all three major segments of the day; morning, evening and during the day.
With the impending weekend, employees are keen to work or shorter day and take time off. Also,
knowing that they have a buffer of available overtime hours on Saturday and Sunday, they may
postpone overtime on Friday in lieu of picking it up on the weekend.
TIME SPENT BY DAY AMONG OVERTIME WORKDERS
350
300
250
200
150
100
50
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Before 9
53
62
67
61
57
Sunday
4
During day
202
204
205
204
189
29
15
After 5
27
25
27
26
17
11. Typical durations for activities average 23 minutes among those who work overtime.
That is, using the TimeCorder device, employees switched from one activity to another every 23
minutes. This includes relative long travel trips, meetings (averaging 39 minutes each), personal
breaks, etc. which offset relatively short activities such as phone calls and interruptions from coworkers.
21
50
Duration in Minutes
40
30
20
10
0
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
Day of Week
When employees do planning, they spend long amounts of time on it during Sundays.
TYPICAL DURATIONS IN MINUTES
PLANNING DAILY SCHEDULE ACTIVITY
60
Duration in Minutes
50
40
30
20
10
0
Day of Week
22
Duration
IMPLICATIONS
Employers need to understand the work patterns of employees who work overtime. They
are more inclined to work before the start of the day than after. This affects the timing of
employee benefits programs such as fitness classes, daycare, and even cafeteria / snack
bar offerings (i.e. breakfasts instead of pizza dinners). It also affects when meetings can
be held.
Major priority activities need to be scheduled during prime hours. During overtime hours,
customers, team members, and other departments are not always available. Therefore
priority work that involves others needs to be done during regular hours. (The exception
to this is when those contacted reside in other time zones.)
Employers need to offer and support family friendly policies to women (primarily) who
wish to work regular hours and get home to take care of unpaid work responsibilities
such as child care and domestic maintenance.
The challenge for organizations is not to simply shift the time when administration tasks
get done, but to eliminate them, automate them, or delegate them.
Employees who expect that their long work hours are only temporary are working under a
false assumption. As one rises up through the organization, working hours become longer.
So there is no break that occurs with seniority, unless employees employ effective time
management techniques or unless the organizations culture supports healthy work-life
balance.
23
REFERENCES
Ciulla, Joanne B. The Working life: the promise and betrayal of modern work, Random House
2008
Ellwood, Mark Time Trade Offs Among Busy Mothers, International Time Use Conference,
University of Waterloo, 2002
Galinsky et al, Over work in America, a report by the Families and Work Institute, 2004
Hart, Robert A The Economics of Overtime Working, Cambridge University Press, 2004
Hoshschild, Arlie Russell, The Time Bind, Metropolitan Books, 1997
Schor, Juliet B. The Overworked American, BasicBooks, A Division of Harper Collins, 1992
Sunter, Deborah and Morrisette, Rene The hours people work, Perspective on Labour and Income
Magazine, Autumn 1994, Volume 6, no. 3, Article 2
24
The TimeCorder device allows users to easily track their time by pushing buttons associated with
pre-coded activities. It has a series of buttons labeled A to Z. Each button is associated with an
activity. Each time a study participant presses a new button, time stops recording on the previous
activity and begins recording on a new one, like a chess clock in reverse. In addition to
cumulative time, the TimeCorder also tracks the number of occasions for each activity. When a
button is pressed, the count for that activity increases by one. In the report, the accumulation of
25
Financial Services
Manufacturing
Wholesale Distribution
Retail
Consulting
Banking
Advertising Sales
Travel
Computer Software
Professional
Hospitality
Public Service
Typically, the purpose for conducting a time study was to gather data to:
Increase organizational effectiveness
Recruit qualified managers and staff
Train managers to acquire and apply new skills
Eliminate activities that dont contribute to primary job functions
Provide appropriate technology that automates mechanical, clerical, repetitive tasks
Introduce systems that facilitate communications without adding to administrative work.
26
2.2
5.6
1.8
6.3
6.1
1.9
7.3
0.6
2.8
0.0
4.0
6%
15%
5%
16%
16%
5%
19%
2%
7%
0%
10%
9
21
5
24
35
10
31
1
9
0
9
15
16
21
16
10
11
14
26
18
12
26
38.5
100%
155
15
3.1
6.4
2.6
7.0
7.0
2.1
7.7
0.7
2.2
0.1
4.3
7%
15%
6%
16%
16%
5%
18%
2%
5%
0%
10%
13
22
7
30
35
10
36
2
8
0
10
14
17
22
14
12
12
13
25
17
23
26
43.3
100%
174
15
3.3
6.3
3.4
6.6
7.8
2.3
10.3
1.4
2.5
0.1
4.0
7%
13%
7%
14%
16%
5%
21%
3%
5%
0%
8%
11
22
8
25
26
11
51
3
8
0
9
17
17
25
16
18
12
12
30
18
31
26
48.3
100%
175
17
27
4.1
6.0
5.3
6.0
10.4
3.5
11.2
2.8
2.6
0.4
3.7
7%
11%
9%
11%
19%
6%
20%
5%
5%
1%
7%
12
22
11
21
30
10
40
5
6
0
9
21
16
29
17
21
20
17
34
24
49
24
55.8
100%
167
20
6.0
6.2
8.1
4.8
9.3
4.2
14.1
5.5
2.6
1.8
3.0
9%
9%
12%
7%
14%
6%
21%
8%
4%
3%
5%
14
17
14
15
24
9
39
10
5
1
7
26
22
34
19
24
29
22
34
30
213
25
65.6
100%
154
26
8.1
7.8
5.9
3.6
11.1
1.8
18.8
6.8
0.3
4.9
5.6
11%
10%
8%
5%
15%
2%
25%
9%
0%
7%
7%
19
22
14
15
18
4
47
11
2
2
11
26
22
26
14
38
28
24
38
13
132
30
74.6
100%
163
27
28
Exhibit 1
Account Executive
Accounting Clerk
Acct Mgr Small Business
Admin Assistant / Support
Analyst
Arborist
Area Manager
Assistant Principal
Assistant Risk Manager
Assistant Store Manager
Assistant Vice President
Asst. Mgr. Personal Banking
Branch Administrator
Branch Manager
Branch Systems
Administrator
Business Direct Acct. Mgr.
Business Internet Officer
Business Officer (Retail)
Caregiver
Cashier Account Clerk
Central Teller
Clerk of Works
Comm. Ban Relationship
Mgr
Commercial Bank Support
Committee Coordinator
Secretary Treasurer
Community Relationship Rep
Compliance Officer / Quality
Consultant
Consultative Account
Manager
Controller / CFO
Corporate Service Assistant
Credit Filing Staff
Credit Officer
Credit Rep
Credit Solutions
Credit Supervisor
Customer Service Rep
Customer Support Engineer
Deputy Clerk
JOBS TRACKED
Doctor
Documentation Staff
Truck Driver
Drug Rep
Electrical General Foreman
Expert
Facilities Coordinator
Facility Laborer
Facility Manager
Financial Advisor /
Investment Executive
Forestry General Foreman
Graphic Artist
House Person (Hotel)
Information Services Staff
Inside / Transactional
Telesales Rep
Inside Sales Rep
Lab / Quality Manager
Lawyer
Licensing Director
Manager
Manager - Commercial
Admin Support
Manager - HR Administration
Manager Compliance
Manager Customer Service
Manager of Records,
Election Services
Manager Personal Banking
Mgr. Product / Mrkt Analysis
Market Development
Planning Manager
Marketing / Communications
Marketing Manager
Marketing Officer (Retail)
MIS / Project Officer
Municipal Worker
Neighbourhood Sales Rep
Nurse
Performance Supervisor
Personal Banking Assistant
Personal Banking Officer
29
Planner
Plant Manager
Policy Documentation
President
Principal
Product Manager
Product Support
Production Manager
Professional Organizer
Professional Speaker
Project Coordinator
Project Manager
Purchasing
Receptionist / Admin Asst.
Recreation Coordinator
Refinery Manager
Relationship Manager
Repair Specialist
University Faculty
Retail Store Clerk
Risk and Portfolio Manager
Sales Assistant
Sales Co-Ordinator Rep
Sales Engineer
Sales Manager
Sales Representative
Scientist
Senior Manager
Service Officer
Store Manager
Store Manager Trainee
Store Merchandiser
Team Lead
Technologist
Teller - Custmr Service Rep
Territory Manager - Retail
Town Planner
Treasurer
Unit Financial Control (UFC)
Vice President
Volunteer
Warehousemen / Stockroom
Zoning Coordinator