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Is Overtime the Answer?

Reno, NV (September 2, 2010) – While the politicians are busy debating economic indicators, contractors have work to do. Do they hire full-time tradespeople and hope they'll continue to have enough work to keep them busy? Or do they try and do everything with a skeleton crew, wearing out their people (and themselves) in the process?

There are several reasons why overtime may not make the most sense:

 

  • The Center for Disease Control reports that in 16 of 22 studies addressing general health effects, overtime was associated with poorer perceived general health, increased injury rates, more illnesses or increased mortality.
  • Overtime was associated with unhealthy weight gain in 2 studies, increased alcohol use in 2 of 3 studies and increased smoking in 1 of 2 studies.
  • In addition to the health effects, employees can become accustomed to the extra money they make working overtime, and stretch their work out to fill the time, rather than focusing on becoming more efficient.
  • Oftentimes, managers don't figure the true cost of overtime in their budgets. For example, say your labor rate averages $15/hour. That means overtime is going to cost you $22 per hour + extra FICA contribution + additional 401K contribution and so on. You can easily be looking at $30/hour when everything is added up. Does your mark-up cover this extra expense?

In a nutshell, overtime may be an occasional necessity, but it doesn't make economic sense to use it as an every day solution. Instead, why not consider temporary staffing to fill in the gaps?

When contractors partner with CLP, we'll take care of the burdens and expense of recruiting, hiring and employing skilled tradespeople, allowing them flexibility and more control over schedules and budgets.

 

  • They pay only for the hours our employees work.
  • One inclusive rate covers everything - including unemployment insurance, workers' comp and an employee benefit program.
  • Every tradesperson completes an extensive screening process before they're sent to your jobsite.

About CLP
CLP Resources, Inc. is the nation’s leading supplier of reliable skilled tradespeople to commercial, industrial, energy, institutional and residential building contractors. Headquartered in Reno, NV, CLP operates offices from coast to coast. CLP is a wholly-owned subsidiary of TrueBlue, Inc. (NYSE: TBI). To learn more about CLP, visit www.clp.com or call 800-CALL-CLP.


Media Contact:

Stacey Burke
Vice President of Communications
253-680-8291

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