Overtime Costs in the Warehousing Industry

Whether it’s because of a seasonal increase in demand or a sudden call out of work, overtime shifts are sometimes necessary in virtually every warehouse. However, while getting important work done is crucial to the success of your business, too much overtime can ultimately cost you more in the long run – in terms of both your finances and the morale of your workers.

Minimizing overtime costs in the warehousing industry can be complicated, especially in warehouses where demand varies by season. Fortunately, using flex labor from a platform like HapiGig could help you preserve both the health of your full-time employees and the profit of your business, all while maintaining the same rate of productivity.

Overtime Shifts Can Hinder Profit and Productivity

The most immediately apparent costs of overtime shifts are the ones mandated by the Fair Labor Standards Act. If you’re going to keep employees on the job more than 40 hours a week, federal law requires you to pay them at least time-and-a-half for every extra hour worked. These extra expenses can add up significantly over time, and in many cases, significantly increase the relative cost of individual tasks in your warehouse.

Unfortunately, excessive overtime can lead to a lot of hidden costs as well, many of which have to do with increased turnover of overworked employees. In many respects, increased compensation is a demotivator rather than a motivator. There’s only so much that extra spending money can do to make up for physical and mental exhaustion after too many late nights on the job.

More overtime shifts mean more time and effort must be spent tracking those extra hours and recording them carefully to comply with FLSA regulations. Between these big and small expenses, you could end up losing thousands of dollars just to overtax your best workers and make your own managerial life more complicated.

Saving Time and Money with HapiGig

Instead of putting the burden of overtime shifts on your full-time workers, consider taking advantage of qualified flex labor available through HapiGig. Through our online service, you could select from a roster of experienced and dependable warehouse workers to fill gaps in your schedule on an as needed basis.

HapiWorkers are not contractors, so you don’t have to worry about replacing overtime paperwork with 1099 forms. Instead, they are W2 employees, about 95 percent of whom have full-time warehouse jobs elsewhere and use HapiGig to supplement their income with extra work. It’s a win-win solution for everyone involved, including your own full-time employees.

At HapiGig, we understand that the warehouse industry’s number-one need is high-quality warehouse labor, which is exactly what our easy-to-use platform could provide for you on-demand and with consistency you can trust. If overtime labor costs are dragging down your business and hindering your ability to run a safe and productive warehouse, flex labor may be the solution you’re looking for. Call today to schedule a consultation with our team and find out what our platform could do for you.

About HapiGig

HapiGig was founded in 2017 and is on a mission to help improve the lives of warehouse workers and employers across the country.

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