Why Long Working Hours May Not Be Productive

Managing the working hours of your team is a delicate balancing act!

It seems that most workplaces include at least one workaholic who feels the need to work excessive hours every day.  It is likely that they are not as productive as they might otherwise be, and the quality of their work usually suffers.

On the other hand, you may have concerns about someone who is not doing their contractual hours.  They seem to be “getting away” with doing the minimum of work and it is likely that their colleagues have noticed and are resentful.

So how can you reconcile these two extremes and find a middle way which works for everyone?

Finding a balance

Most people have a specified number of working hours as a clause in their contract of employment (their “contractual hours”).  Some may stick rigidly to those hours and work no longer, nor any less. Some can even be fairly fanatical about working the exact hours they are paid for.

A good manager can work with all of these people and most teams have a mixture.  But when does it become a problem?  And what can you do about it?

Excessive working hours

If you have an issue with people working excessive hours, then it might be a good idea to look in the mirror.

If the boss is seen to have long working hours, then people will follow that lead.  Even if you tell them that you do not expect them to work long hours, they will watch you and follow your example.   The old adage “do as I say, not as I do” just does not work.  We humans have a herd mentality.We want to fit in with others and be accepted.  The obvious way to do that is to mirror the leaders.  It is not a conscious decision, but it is a fact.   So if you want to change a culture of long hours, you may need to model the required behaviour.

The other reason we work long hours is because we feel under pressure to get more work done.  In busy workplaces, the temptation is always to do just that little bit more before you finish for the day.  That “little bit more” can then stretch into a great deal more.  And it can quickly become a habit.  It is counter-productive, of course.  After a few hours, we quickly become stale and no longer produce good quality work.  So work which gets done in extra hours is often poor and needs to be done again. Mistakes creep in when we are tired.  And we work more and more slowly and everything takes more effort.

What about those who do the bare minimum?

On the other hand, there are people who seem to coast through work, doing the very minimum and seemingly “getting away” with it.

This one is difficult to deal with, because some people are just very quick and efficient.  They do manage to get through a huge amount of work in a minimal timescale. This can upset others who think those people are not pulling their weight.

The best way to manage workload is to decide what you think is a reasonable result for the amount of time available.  For example, you may think an acceptable average time for, say, writing a report is 7 hours or one day.  One team member may take 10 hours, while another may only take 5.5 hours.  In both cases, the quality of the report is good and meets the requirements.  My assessment would be that both are acceptable.  If the person who took longer has done a good job, then maybe you could adjust their workload to give them time to work to the acceptable standard.  If the person who worked less time still produced a good report, then you are safe to give them a little more work to fill their time.  But it is all a balancing act.  If you thought a day was acceptable and they finished early and had some more time for their own personal things, then good for them.

The point of this is that the end result is what matters, not the exact time taken to achieve that result.  You will probably find that the slower person has other areas where they excel.

Stopping the gossip

If you have a team member who appears to be working for fewer hours and their colleagues are not happy, then you may need to intervene.

It may be as simple as a team meeting, where you explain to everyone that you judge their work on the results they achieve.  If they produce good work in the required timescale, then let them know that you will not be checking their hours.

It might be a good idea to keep a careful eye on the situation, of course.  If someone is taking advantage and really is slacking, then you may want to take some action.  Equally, someone may be taking too long because they are struggling, or need some training.  Again you may want to do something about that.

What about the clockwatchers?

Of course, many people work the required number of hours and no more.  If the quality and amount of their work is acceptable, then this is not a problem.  It could cause a difficulty if they take too long to do the work, or if they are not being productive.  This might indicate that they are stretching the work to fill the hours available.  Or it might show that there is too much to do in the timescale, but they are not prepared to work longer.  Either way, the workload may need some adjustment.

Outcomes and results

The nub of the matter is that many managers confuse hours worked with being productive.  My approach has always been to judge on outcomes.  If we try and judge people on their number of working hours, then we are paying them for their presence, rather than their contribution.

We all have productive days and days which we feel have been wasted.  We work at a differing pace, depending on our emotions, our health, and a myriad other factors.  I am sure we have all had working days when we might as well not have got out of bed.  But equally, everyone has a day when they shine and achieve miracles.

A productive workforce is made up of people who are at all stages and work at a different pace.  A good manager will recognise this and judge on results.

If you think this article is useful and you would like any strategic HR support or information  on dealing with this  – or any other people-related issue in your business – contact us for a no-obligation chat.

Jill Aburrow runs an HR strategic consultancy business – JMA HR .  She provides strategic HR advice and support to businesses who want to improve loyalty, growth and profit. Why not join the JMA HR mailing list?  Jill has been a professional strategic HR advisor for over two decades. She is a Fellow of the Chartered Institute of Personnel and Development (FCIPD) and has a Post Graduate Certificate in Employment Law.

WARNING: What you must know about your contractors before April 2020

Earlier this year, I wrote an article about the UK Government’s consultation on the introduction of IR35 tax rules.  This is in relation to contractors in the private sector. If you use contractors in your workplace and you are a medium or large sized company, then you need to prepare for these changes.

Many employers remain unaware of these changes. If you do know about the changes, have you discussed them with your contractors? Have you agreed on their taxable status?

The Government announced in July that the consultation had finished and changes would be effective from April 2020.  Tax and National Insurance payments for contractors will become your responsibility.

It is best to avoid the blanket payment approach

These rules were brought in for the public sector back in 2017. Most public sector employers decided to tax their contractors as employees.  But they did not give those contractors the other benefits of employment. As a result of this approach, many contractors stopped working in the public sector. Public sector employers now find it much harder to attract contractors. Where they do still use contractors, they often have to pay a huge amount more than before.

What are the tests which prove whether or not a contract worker is genuinely self-employed?

Unfortunately for employers (and contractors), the only real test is in employment tribunal. There have been several high profile cases about employment status and there are likely to be more.

There is no hard-and-fast rule which shows that one person is genuinely self-employed. But there are some indicators which the Courts will consider in these cases. So it would be wise for employers to consult with their contractors about these issues.  This will help to determine how their tax should be calculated. Not all of these indicators apply to every contractor.  But they can give a guide to the true status of employment.

Some of the factors

  • Can the individual work at times and from a location to suit themselves? Or do you require them to be at a specific location, at specific times.  Do you require a set number of hours? If so, then that would indicate that you are their employer, not their client.
  •  Does the individual use their own equipment and tools? Or do you expect them to use tools and equipment which belong to your company? Again, this would indicate they are employed by you. If you are happy for them to use their own tools, this is another indication that they are not your employee.
  •  If you provide skills training, this might indicate they are considered an employee. Especially if you require them to undertake such training. A true contractor (supplier) should already be trained and skilled in what you need.  So it should not be necessary to provide any skills training for them.
  • Is there an expectation that you will continue to provide work once the specific job has been completed? Alternatively, are they expected to do work for you, other than what is specified in the contract? Or do you expect them to continue to be available for work for you once the project is done? Any of these things would suggest “mutual obligation” between you. This indicates that they are an employee.
  • What happens if they are unavailable (off sick or on holiday)? Do you allow them to provide a substitute to do the work while they are off?
  • Are your contractors free to do work for other companies at the same time as they work for you?
  • Do you provide transport, uniforms or other “employee benefits” for your contractors?  For example,  can they use a company subsidised gym or restaurant?

This is not an absolute or exact science

The answers to these questions can help you and your contractors decide on the fair way to deduct tax and National Insurance. Should it become clear that they are an employee, then you may need to offer employment terms and conditions and benefits. If you do not do so, then it is unlikely that the individual will be prepared to continue to work for you.

Your discussions  – and their answers – might indicate that they are a true contractor or “supplier of services”.   This will not guarantee that HMRC does not investigate further, of course. But your records of these discussions and their answers will help to show that you have investigated their employee status and have valid reasons for your decision.

Discussions sooner rather than later

If you want to avoid last minute decisions about the status of your contractors, then you need to start these consultations now. Otherwise you might face significant disruption and loss of talent at the last minute. Many public sector organisations are still facing skills shortages. Some are finding it hard to attract and retain contract workers.

The Government has developed a tool to help businesses to decide on the tax status of their employees. There has been some criticism of this Check Employment Status For Tax tool, but it may help employers and their contractors to make an informed decision.

 

If you think this article is useful and you would like any strategic HR support or information on dealing with this – or any other people-related issue in your business – please join our mailing list, or contact us for further guidance.

Jill Aburrow runs an HR strategic consultancy business – JMA HR . She provides strategic HR advice and support to businesses who want to improve loyalty, growth and profit. Jill has been a professional strategic HR advisor for over two decades. She is a Fellow of the Chartered Institute of Personnel and Development (FCIPD) and has a Post Graduate Certificate in Employment Law.