The New Flex Force: Comp Time vs. Overtime

Many employees out there in Work Land are expected, sometimes coerced, into working overtime on a regular basis. It’s cheaper for the business to hold them over than it is to hire the obviously-needed staff, but it would be cheaper still to offer them something they really want in times of slowing business: time off.

According to recent commentary on C-SPAN’s “State of the Workforce” conference last month, employees would prefer time off to the additional money overtime brings in. Employers would like access to an already-trained and established crew in times of high output, and can think of no cheaper way to get it without going through the hassles and expense of new hires, temp workers, and additional costs associated with each. In the end, overtime pay is cheaper—but what about the slow times?

Firing or laying off workers can become an expensive proposition too, because of various labor laws, and again the loss of access to trained and established workers is evident. The current working solution to both short-term crises is this: comp time for overtime.

Comp time allows workers held over to catch up on needed downtime to tend to family and household issues neglected during the high-output period, and is ultimately cheaper than even retaining established workers for extra hours. This time is tax-free to the employee, and allows down-time similar to “mini-vacations” without the actual deduction of vacation days. Benefits are preserved, so long as they are accounted for and come out of the comp time balance BEFORE actual time is spent away from the work site. Think of it as paid time off, but the “pay” was earned in advance.

The employee gets to sit at home, relax, catch up on things, and gets to keep full benefits and a paycheck while in downtime (as long as the overtime account balance lasts). The workplace, meanwhile, has less overhead, and its workforce is better matched to output needs. This “downtime” crew can rotate people in and out as needed for coverage on sick days, vacation days, and retirement of other workers in “uptime”, in essence, creating an in-house temp force of fully trained and familiarized workers. The whole “downtime” crew can be rotated to let other crews have their turn at “downtime” as well.

This is the future of our workplace and staffing. It works out to be more efficient than the overused off-shoring and outsourcing that exists today. The employer saves on hiring, training, and pay costs, while the worker receives free time, pay, and benefits while waiting in reserve.

If a business is lucky enough to have predictable up and down times, then the flex force can plan family activities well in advance, knowing when the “down” times occur—much like what year-round school parents enjoy. Predictable downtimes also allow plenty of time for volunteer activities, a short-term second job (in someone else’s “up” time), or just closer family involvement.

Workers in the future should opt for the time—they’ve already earned it! Besides, living frugally should already allow for this option to be fully embraced.