Non-billable overtime (NBOT) refers to hours worked beyond contracted schedules that do not generate revenue. This has become a significant concern for industries where labour costs dominate, particularly in South Africa’s security, cleaning, and facilities management sectors. Given the tight profit margins in these industries, excessive NBOT can erode profitability significantly. This highlights the need for proactive management to maintain efficiency and cost-effectiveness. By understanding its impact and root causes, businesses can take strategic steps to mitigate NBOT. In the blog below, we explore this impact and practical strategies to reduce NBOT, with a particular focus on the role EasyRoster plays in optimising workforce management and reducing NBOT.
The Impact of Non-Billable Overtime
Non-billable overtime diverts valuable resources by increasing labour expenses without a corresponding increase in revenue. This financial strain can restrict investment in key areas such as operational improvements, training programs, and workforce expansion. Additionally, it contributes to employee fatigue and burnout, leading to productivity losses and financial strain.
Managing 24/7 operations under South African labour laws, such as the Basic Conditions of Employment Act (BCEA), presents a number of challenges across the security, cleaning and facility management sectors. These companies must balance operational efficiency with compliance while ensuring customer satisfaction. These companies also often operate across multiple sites, which requires adjustments in workforce levels to meet fluctuating client demands. Without efficient workforce management, labour inefficiencies lead to costly overtime and operational disruptions.
We have touched on the impact of NBOT in the above. Now, let’s examine some of the most common root causes of non-billable overtime.
Root Causes of NBOT
Lack of visibility into staff schedules and work allocation often results in excessive NBOT. This is because, without real-time workforce insights, managers struggle to anticipate staffing needs, leading to unnecessary overtime. Manual rostering errors further contribute to inefficiencies, making it difficult to match shifts with employee availability and skill sets.
Misalignment of employee skills and shift requirements also increases NBOT. When employees are assigned roles that do not match their expertise, productivity drops, requiring additional resources to meet operational demands. Addressing these challenges requires a systematic workforce management approach.
Now that we have a better understanding of the root causes of NBOT, let’s examine the different strategies for reducing non-billable overtime.
Strategies to Reduce Non-Billable Overtime
Security, cleaning and facility management companies can implement several strategies to minimise NBOT. These include the following:
1. Use Scheduling Tools to Increase Visibility
Real-time scheduling systems like EasyRoster provide a clear overview of hours worked across all sites, automate alerts for employees nearing maximum work hours, and streamline scheduling processes. This improves visibility and allows managers to prevent excessive overtime before it occurs.
2. Optimise Schedules to Avoid Overtime
Advanced scheduling enforces rules that prevent employees from exceeding contractual work limits while matching shifts to qualifications and availability. EasyRoster helps managers schedule shifts that align with contractual and operational requirements, assisting with compliance to South African labour laws.
3. Leverage Data-Driven Insights
Data analytics help businesses identify inefficiencies and refine workforce planning based on demand patterns. EasyRoster’s customisable dashboards and reports provide actionable insights, allowing managers to adjust scheduling strategies in real-time and optimise workforce allocation.
4. Streamline Multi-Site Workforce Management
Managing multiple sites involves balancing staff allocation and maintaining compliance across locations. Without an integrated workforce management system, these challenges escalate, leading to unnecessary overtime expenses. EasyRoster centralises scheduling, offering real-time workforce visibility and ensuring optimal shift distribution across locations.
5. Enhance Efficiency Through Automation
Automation reduces NBOT by eliminating manual scheduling errors and streamlining attendance tracking. EasyRoster includes an ‘Automatic Scheduling’ feature that simplifies shift allocation, allowing managers to make final adjustments as needed. Many businesses experience significant administrative savings through automated workforce scheduling and payroll integration.
6. Monitor and Adjust Strategies Over Time
Reducing NBOT requires continuous monitoring and refinement. Businesses should regularly review scheduling data and adapt workforce strategies to seasonal trends and changing client demands. EasyRoster’s reporting tools facilitate trend analysis, enabling data-driven decisions for long-term workforce cost control.
Conclusion
From the above, it is clear that reducing NBOT is essential for maintaining profitability and operational efficiency in labour-intensive industries. Implementing structured workforce management strategies can mitigate the risks associated with excessive overtime, ensuring sustainability and cost control. EasyRoster assists in reducing NOBT by optimising shift allocation through centralised scheduling and ensuring labour law compliance with compliance monitoring and data-driven insights to support better workforce planning. To explore potential savings from reducing NBOT, visit EasyRoster’s Workforce Management ROI Calculators today and find out how EasyRoster can enhance your business’s profitability.
