ArticlesSolution Papers

Provide Transparency and Accuracy In Overtime Management

This is solution paper is intended to implement best “Overtime Management” in your organization by using Orchestra HR. We will first identify the problem definition, and then underline the design points that must be considered and finalized with implementation steps in Orchestra HR.

Keep in mind, solution steps can also be implemented and deployed with your qualified technical experts. If you need further assistance or training requests please e-mail us from

Problem/Case Definition

Before starting about overtime management, we need to define what is Overtime?

Overtime refers to any hours worked by an employee that exceed their normally scheduled working hours. 

How to calculate overtime hours?

  • Actual extra working hours out of daily schedule,
  • Weekly actual working hours more than planned hours,

Normally both calculation methods are correct. But one of them should be taken as calculation of "Overtime". Difference between both definition makes us to determine we need to implement periodic balance calculations at the last day of week or month. After making these calculations, you may say there is an overtime or not.

Considerations in Overtime Management

 Points of discussion in setting overtime process;

  • As the overtime occurs in production area, HR is not able to know or learn is its reasons, meaning who is allowing this overtime and why? For this reason overtime approvals should be collected by an online system,
  • There has to be no doubt that overtime hours are actually worked? data collection system should support the overtime hours,
  • Recording overtime hours with reason codes needed for statistical and analytics?
  • Automatic notification of unapproved overtime to related parties on daily basis such as managers, time admins,
  • Automatic escalation or approvals for unapproved overtime hours waiting in manager ‘s inbox,

Orchestra Process Flow

Our solution in overtime management relies on following rules;

  1. Overtime hours should be approved by managers with reason codes,
  2. To make item 1, HR team should define all possible overtime reason codes, this list can be done by discussion with all related parties,
  3. Overtime approvals should be done from web or mobile, from anywhere and anytime, this is the main feature of Orchestra HR advantage as it is cloud-based solution,
  4. Overtimes should be calculated by time evaluation program and name of these hours as “Unapproved Overtimes”
  5. Unapproved Overtimes should be mailed to employees on daily basis,
  6. Employees should fill Overtime Forms and send their managers,
  7. Managers approves or rejects these forms, approved forms will be transferred to payroll as overtime wages.

As you can see in this process, system will be checking overtime hours and send them to employees, request reason code and explanation for each overtime, after receiving these forms all overtimes will have reasons and explanations in the system.

Implementation Steps in Orchestra

  • Assuming you have Orchestra HR running, if not, please create your Orchestra HR system first, please read two articles first,
  • Activate time management module and check its settings, including overtime reasons codes, shifts and other steps, please read this article,
  • Run time evaluation on daily basis, activate My Time Messages app and inform employees that they have to check time messages on daily basis,
Comments are closed