Overtime vs. Hiring Additional Employees

In: Business and Management

Submitted By slaugie91
Words 1776
Pages 8
Overtime vs. Hiring Additional Employees
Emily L. Slaugenhoup
Butler County Community College



Today’s economy is certainly struggling. With hard times, many employers are faced with tough decisions on how to save money. One area to be considered is the number of employees, their salaries, benefits, and bonuses. A company can save money depending on whether they hire additional employees to cover shortages and additional work or by simply paying current employees overtime to get the work done. There are numerous pros and cons to both. However, there is not always a clear answer.
According to the Fair Labor Standards Act (FLSA), an employer must pay an employee overtime pay for any amount of work over forty hours. They do not, however, have to pay for work on “Saturdays, Sundays, holidays, or regular days of rest, unless overtime hours are worked on such days.” Overtime pay amounts to at least one and one half times the regular rate of pay. Weekend and night work does not require overtime or additional pay by FLSA standards, but an employer may make that agreement. (Wages)
The cost of overtime can vary depending on the wage. The cost of hiring an employee can vary as well, but it can also be roughly calculated. The Huffington Post used GetHired.com to estimate the hiring costs. It used the costs of posting an open position, reviewing applications, screening applicants, preparing for interviews, interviews, and the final steps to come to a total figure.
Posting an open position $37.50 - $456.50
Reviewing applications $587.50 +
Screening applicants $100 +
Preparing for interviews $31.25
Interviews $75
Final steps + $187.50
Total (variable) $18,795.25 (higher potential cost)
This estimate would be in addition to the salary paid to come up with an overall cost for hiring an employee. (Ciccone,…...

Similar Documents

Overtime vs. Hiring Additional Employees

...Overtime vs. Hiring Additional Employees Emily L. Slaugenhoup Butler County Community College Today’s economy is certainly struggling. With hard times, many employers are faced with tough decisions on how to save money. One area to be considered is the number of employees, their salaries, benefits, and bonuses. A company can save money depending on whether they hire additional employees to cover shortages and additional work or by simply paying current employees overtime to get the work done. There are numerous pros and cons to both. However, there is not always a clear answer. According to the Fair Labor Standards Act (FLSA), an employer must pay an employee overtime pay for any amount of work over forty hours. They do not, however, have to pay for work on “Saturdays, Sundays, holidays, or regular days of rest, unless overtime hours are worked on such days.” Overtime pay amounts to at least one and one half times the regular rate of pay. Weekend and night work does not require overtime or additional pay by FLSA standards, but an employer may make that agreement. (Wages) The cost of overtime can vary depending on the wage. The cost of hiring an employee can vary as well, but it can also be roughly calculated. The Huffington Post used GetHired.com to estimate the hiring costs. It used the costs of posting an open position, reviewing applications, screening applicants, preparing for interviews, interviews, and the final steps to come to a total...

Words: 1776 - Pages: 8

Additional Checkout Application

...Application-Level Requirements List 1) The application will display a menu and prompt the user to enter an item name or number, and item quantity. 2) The application will calculate the price and any applicable discount for the item(s). 3) The application will calculate the tax (in this case, a rate of 7.5%) for the item(s). 4) The application will calculate the subtotal, final tax and final total. 5) The application will add any additional items, and recalculate all taxes and totals for those items. 6) The application will display the subtotal, final tax, and final total for the items purchased to the user. Input-Process-Output Chart Complete the following input-process-output chart for the application using a structured programming approach. Hierarchy Chart Complete a hierarchy chart for the application by typing into the textboxes below. Flowcharts Main Module Get User Input Module Calculate Item Price, Item Discount Module Calculate Item Tax Module Calculate Totals Module Display Totals Module Add Item(s) Module Display...

Words: 744 - Pages: 3

Auo1 Additional Study Questions

...AUO1 – Auditing and Information Systems Additional Study Questions Accounting Information Systems Competency 302.1.1: Nature and Purpose The student understands the nature and purpose of information systems. * What is the difference between transaction processing systems, management information systems, and decision support systems? Transaction processing systems - document financial activities Management information systems - used to collect qualitative as well as quantitative information for decision making within organizations Decision support systems - help the developers of an AIS identify what information they need for their planning, decision making, and control functions * How is a flowchart used? A document flowchart traces the physical flow of documents through an organization—that is, the flow of documents from the departments, groups, or individuals who first created them to their final destinations. * How is the accounting information system documented? An accounting information system is a collection of data and processing procedures that creates needed information for its users. An information system's components: Data or information is input, processed, and output as information for planning, decision-making, and control purposes. Nine reasons to document an AIS are (1) to explain how the system works, (2) to train others, (3) to help developers design new systems, (4) to control system development and maintenance costs, (5) to...

Words: 12321 - Pages: 50

Mechanism in Hiring of Employees

...science Updates About Biology SUBMITTED TO: MRS. MA. L. TAN SUBMITTED BY: RHEINROSE GARCIA FIONA DE LEON PAUL HERNANDEZ MAY ANN MARBANO MAE JEAN RECUBEDO | Baculovirus-recognizing human cell receptor identified for the first time | The receptor used by baculovirus to enter and interact with human cells has been identified. This syndecan-1 receptor was identified for the first time in a recent collaborative study carried out by the University of Eastern Finland and the University of Jyväskylä in Finland. The findings increase our understanding of the strategies by which the virus causes infection in cells and further facilitates the development of baculovirus for applications of gene transfer. According to the researchers, the identification of the syndecan-1 receptor helps in understanding the ways baculovirus interacts with human cells and sheds further light on the mechanisms the virus uses in human cells. The study also focused on the role of the syndecan-1 receptor in the cell penetration of baculovirus. The study was published in the prestigious Journal of Virology. The article was featured in the Spotlight section of the journal, which is reserved for especially interesting and distinguished publications. Used in drugs and vaccines Baculovirus is an...

Words: 1154 - Pages: 5

Employees

... feel appreciated and cared about. This would lead to more productive work done. There have been surveys conducted by the human resource departments about what most employee want from work. Fifty-five percent of the respondents would want praise and recognition from their supervisor. Money, benefits and events that involve employees were also listed. However, recognition seemed to be the number one choice. A company that considers recognition as a way to motivate and retain employees must consider the following alternatives. First, a supervisor can write a personal note to the employee recognizing him. The verbal recognition can go with a gift, such as plaques or certificates. It will support the employee recognition. The company can also recognize the employee publicly so that they become a model. If a company does these and other strategies, for sure every employee would not think of leaving the company. Recruitment What factors should determine the proper mix of recruitment methods for an organization? Include such factors as organizational goals, diversity, and creative solutions. Many companies and recruitment agencies consider hiring Employees7 the right employee as a very important task. These companies would not want to regret later if they have accepted someone who does not fit the job. A company’s recruitment methods must, in all ways, match its organizational goals, diversity and creative solutions. Since, goals area collective decision...

Words: 2210 - Pages: 9

Hiring

... rape jp- Case: 6:01-cv-00339-KKC-REW Doc #: 669 Filed: 03/01/10 Page: 2 of 17 - Page ID#: 13377 Decree will further the objectives of Title VII and. will be in the best interests of the parties, the individuals for whom EEOC seeks relief, and the public; and [v] this Decree resolves all the matters in controversy between the parties as provided in sections one through eleven below. This Decree is entered into by Defendant without admission that any of its acts, past or present, are in violation of any law; and Defendant denies that any of its actions are or were unlawful: accordingly, the Decree shall not constitute an admission, adjudication or finding on the merits of the allegations made in the Commission's Complaint. IT IS THEREFORE ORDERED, ADJUDGED, AND DECREED as follows: PART ONE: GENERAL PROVISIONS Section 101: Scope of Decree Unless otherwise stated, this Decree applies to DC 6097, located in London, Kentucky, and results in a complete resolution of all claims raised in the Commission's Complaint. EEOC hereby releases Defendant with respect to any and all such claims, Section 102: Nondiscrimination in Employment Wal-Mart, its officers, agents, servants, employees, successors in interest and all persons acting in concert with or on its behalf are hereby enjoined from discriminating against females in hiring for orderfiller positions. Section 103: Non-Retaliation Wal-Mart, its officers, agents, servants, employees, successors in interest and all......

Words: 877 - Pages: 4

Hiring Packet

...8610 Hansen Ave. Shakopee, MN 55379 BIFFS, INC. Instructions for New Hire Packet – Applicant Directions 1. Page 2 – Checklist - Fill in or verify your name and social security number. Supervisor to fill in the date of hire & Company assigned (EID) employee identification number. 2. Pages 3 – 7 – DOT Application - must all be completed including 10 years (if CDL holder); 3 years (if non-CDL holder) of previous work history, addresses, & phone numbers. ** If there is any time frame for unemployment or selfemployment please list. DOT is looking for a complete trail of information provided by the driver representing where they have been from date to date. Please complete this form and provide a signature/ date at bottom of page 7. Read “Driver Rights” provided by your company. 3. Page 8 - Previous Employer form – Only sign the top box on the first page where it states Applicant signature and date. Company / Supervisors will send out to the previous employers listed on driver’s application. 4. Page 9 – DISCLOSURE - sign and date bottom *Company is required to order and obtain a current MVR for driver prior to hiring or being moved into a driving position. Driver written authorization is required. 5. Page 10 top Record of Violations form – Fill in any moving traffic violations you have had within the past 12 months; provide a signature & date. If no violations check box. Page 10 bottom – Annual Review (SKIP) to be completed by supervisor with a current MVR. MVR...

Words: 8061 - Pages: 33

Additional Income

...KUALA LUMPUR: Malaysia will be able to rake in an additional income of up to RM27 billion if the proposed goods and services tax (GST) is implemented at seven per cent, similar to neighbouring Singapore. Minister in the Prime Minister's Department, Datuk Seri Idris Jala said the new taxation mechanism can guarantee additional revenue of RM20 billion to RM27 billion, at maturity. "At maturity, is when, every Malaysians starts to contribute towards the GST. It must be implemented as soon as Malaysians are ready to accept the mechanism," he added. Speaking at the forum, "GE13 - What it means for business?" here today, Jala said education on what the GST is all about and how it benefits the country's economy is very important, as well as for Malaysians to understand and accept the taxation mechanism moving forward. He also said the GST will provide extra funds for the government to spend on the well-being of Malaysians, according to what was promised in the Barisan Nasional's manifesto, before the 13th General Election. "Even though a new tax is being introduced, Prime Minister Datuk Seri Najib Razak had committed to reducing corporate as well as personal income tax. "This shows that the government wants a balance in every move that it makes, whether economically or politically," said Jala, who also heads the Performance Management & Delivery Unit (Pemandu). Meanwhile, he denied claims that the pre-election promises made by the government, will...

Words: 589 - Pages: 3

Safe Hiring

...Safe Hiring How can you avoid bad hiring in the corporate world? In this reaction paper I will integrate the different approached of safe hiring in order to know the level of significance to have sufficient and reliable employees and also to prevent future predicaments in the selection and recruitment process. In some companies because of the urgent hiring’s due to diversification of the globalization their recruitment and selection process is somehow profane that they rush the most important and relevant purpose of having a valuable asset of the companies which are the employees. Here are some important factors to have a valid and acceptable applicant/s in the employment recruitment process: first and foremost it is the responsibility of Human Resource Representative or any personnel that will interview and accept the application forms of the applicants to be thoroughly checked and to know how to hire in the first place. How to hire in the first place? This chronological idea of having a safe hiring is very prominent now a days that is why the first thing to actually acknowledge is the importance of “why do they hire and how?” this phrase is important because this will be one of your bases in hiring a good and satisfied applicant that relates to the job description and job specification in the selection and recruitment process. Second are the rules and strategies on how to collect a clear and complete data of the applicants. Here are some tips and guidelines...

Words: 969 - Pages: 4

Additional

...Norman Corporation (A)* Until 2006, Norman Corporation, a young manufacturing of specialty products, had not had its financial statements audited. It had, however, relied on the auditing firm of Kline & Burrows to prepare its income tax returns. Because it was considering borrowing on a long-term note and the lender surely would require audited statements, Norman decided to have its 2006 financial statements attested by Kline & Burrows. Kline & Burrows assigned Jennifer Warshaw to do preliminary work on the engagement, under the direction of Allen Burrows, Norman’s financial vice president had prepared the preliminary financial statements shown in Exhibit 1. In examining the information on which these financial statements were based, Ms Warshaw discovered the facts listed below. She referred these to Mr. Burrows. 1. In 2006 a group of female employees sued the company, asserting that their salaries were unjustifiably lower than the salaries of men doing comparable work. They skied for back pay of $250,000. A large number of similar suits had been filed in other companies, but results were extremely varied. Norman’s outside counsel thought that the company probably would win the suit but pointed out that the decisions thus far were divided, and it was difficult to forecast the outcome. In any event, it was unlikely that the suit would come to trial in 2007. No provision for this loss had been made in the financial statements. 2. The company had a...

Words: 1742 - Pages: 7

Fraud Additional

... happening to you. | | WHO IS AFFECTED BY FRAUD? | Fraud affects everyone. It costs business millions of pounds each year, though the numbers of cases and scale of those losses are difficult to calculate. Police fraud squads have an ongoing caseload of about 1000 cases each year and a survey in September 2000 established that these cases alone represent at least £1,700 million in losses. These are just the more serious commercial fraud cases and the figure does not include fraud cases dealt with by the rest of the police service.  The obvious effects of fraud include: * Insolvency, winding up * Bankruptcy * Failure of suppliers' businesses * Loss of employment * Damage to profitable businessesFraud dealt with by government departments, especially tax fraud, cases dealt with by the Serious Fraud Office, Social Security fraud and fraud in the NHS, costs several billions each year. In addition, an unknown proportion of fraud remains unreported to the authorities.  There are also many hidden costs as a result of fraud, such as: * Loss of working time * Loss of business confidence * Loss to the Revenue * Increased insurance premiums * Reduced staff morale * Opportunity costs: employees' time * The costs of investigation and prosecutionsFraud clearly doesn't just affect everyone, it hurts most of them, too. Unchecked, fraud has the potential to lead to dire personal financial consequences and, in extreme cases, even bankruptcy. Don't let it...

Words: 2053 - Pages: 9

Employees

...How to increase productivity at work by increasing the hours of the employees. Creating more hours to the employees is going to engage more customer service interactions and generate more business to the company. Full time employees value their job because they can make enough money to support their families part time employees sometimes they don’t value their job because they can easily find another job. If you increase the hours to the part time employees you encourage them to do a better job because they know you value them. I know that the company base their schedule based on projected sales from the previous years but if the company is not well staff they can lose potential business because they are not helping customers. I understand that corporate mandate the hours but what happens when we have a spike of business. Are we going to left unattended customers roam around the store without being help because we don’t have any hours to give to the employees? For example, if I go grocery shopping and I’m looking for specific item and I can’t find it I’ll not be able to purchase that item. If there is not employee available to help me find it, the store is going to lose business. By putting more employees helping customers you can generate more profit. I know that the company is trying to balance labor and profit to a point but overworking employees and not giving the enough time to complete their task is not the right way to do things. Soon or later the......

Words: 395 - Pages: 2

Additional Cash

...1. Additional Cash: The Franklin Corporation last year reported sales of $10 million and an inventory turnover ratio of 2. The company has acquired a new inventory control system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 5, and still maintain the sales level, how much additional cash will they have? $300,000 2. Average Accounts Receivables: The Myst Association has an average collection period of 17 days for credit sales and averages $3,500 per day in credit sales. What are the company's average accounts receivables? $59,500 3. Effective Cost & True Effective Costs: What is the effective cost and the true effective costs of trade credit under the credit terms of 3/15, net 30? 75.26% 4. True Effective Cost of Trade Credit: Walls-Smart buys merchandise from its suppliers under the credit terms of 1/15, net 45. However, they always take 60 days to pay their bills. Since Walls-Smart is a large and important customer, suppliers are willing to stretch the credit terms for Walls-Smart. What is Walls-Smart true effective cost of trade credit? Research: 1. Ratio Analysis: Identify the types of ratios that are used to analyze a firm’s financial performance based on its income statements and balance sheets. 2. Cost-Volume-Profit Analysis: What is cost-volume-profit analysis? How can it be used by a firm? 3. Holding Cash: Describe the three motives or reasons for holding......

Words: 370 - Pages: 2

Intro to Business Hiring and Maintaining Employees

...1 Business owners have to hire employees to have a successful and profitable business. Employees are the essential support for a business to run properly and service their customer’s needs. Business owners have to depend on the employees to complete daily tasks and meet policies and procedures. The company has to hire the right person for the job or it can become an expensive mistake very quickly. The right individual hired can led to a successful employment relationship and the individual pays the company back with productivity. The company has a duty to maintain the right employees by providing benefits, incentives, and retention programs. Companies should implement a plan designed for their hiring process, selecting the right candidate, and maintaining the right employee. Companies should have a procedure in place for their hiring process. The hiring manager must meet and maintain the company budget when hiring new employees. They have to make sure the company can afford to fill a position. You have to know why you are hiring and what the position will be. The plan should include the job description, salary, and requirements. The job description is comprised of requirements the employee will be responsible for, position type, daily responsibilities, job goals, and exact procedures for the job function. After the job description has been determined, the hiring manager will begin the process of posting the job. The internet has opened up great...

Words: 969 - Pages: 4

Additional Funds Needed

...Financing Costs of Additional Funds Needed: A Modified Equation Approach By: Daniel T. Winkler Winkler, D. T. "Financing Costs of Additional Funds Needed: A Modified Equation Approach," Financial Education and Practice, Summer 1994, pp. 149-154. Made available courtesy of Financial Management Association International: http://www.fma.org/fm.htm ***Note: Figures may be missing from this format of the document The additional funds needed (AFN) equation is a popular forecasting model for estimating additional funds requirements (Brigham [3]). Academicians regard the AFN equation as an excellent pedagogical tool; practitioners find it highly beneficial for many forecasting needs. To apply the model, an analyst needs to know the amount of assets required per dollar of sales, the amount of spontaneous liabilities available per dollar of sales, the change in sales, and additions to retained earnings. Additions to retained earnings are calculated by multiplying the net profit margin by forecasted sales and the retention ratio. The equation is shown as follows: The first term on the right-hand side (RHS) of equation (1) is the increase in assets required to support the change in sales. The second term subtracts the increase in spontaneous liabilities associated with the sales increase. The third term deducts additions to retained earnings. As useful as practitioners and academicians find the AFN equation, it is subject to considerable estimation error when financing costs...

Words: 2832 - Pages: 12