As an employee, company owner or future entrepreneur, unpaid overtime will play a very important part in your finances, human resources management and success. This article will explore what unpaid overtime means for Entrepreneurs and employees and how it measures your business success.
Get the unpaid overtime tool it will help you understand the impact of unpaid overtime for YOU.
I’m some kind of an extremist about overtime and in particular unpaid overtime. I strongly believe it’s vital -and frequent- for startups, but I also believe that in a corporation lots of overtime can only mean one of two things:
- the person is incompetent and should not be doing this. Find his/her talents!
- The boss is incompetent and is giving too much work
Understanding the impact of the unpaid overtime on your company, your employees or yourself will make you aware of your impact, make you feel proud of your contribution and aware of what employees are giving you.
Unpaid overtime for the employee
By working for a startup, it is normal that sometimes you’ll have to work long hours, the processes are not ready (or even there) and any issue is a critical issue. In startup mode you “throw bodies at the problem”. By doing unpaid overtime you are reducing your hourly value, so every hour brings you less money and on top of that you are not doing what is important for you. This is why you should have a compensation for this work, possibly a compensation that does require the company to spend cash, for examples shares, titles or vacation days.
- $50’000 per year, for 52 weeks per year so 50000/52 per week
- 40 hours per week (8 hours per day, 5 days a week)
- every hour of your work is worth $24.04.
- If you work 50 hours a week then your hour is now worth $19.23
- If you work 60 hours a week then your hour is now worth $16.03
The difference between your standard earning (24.04) and your current rate is what you should ask the company to compensate.
Unpaid overtime for the startup entrepreneur
Unpaid overtime offers a startup a way to reduce cash expenditure, generate more cash and increase margins. It’s very important that in exchange of these employees are offered interesting packages.
After using the unpaid overtime impact tool, did you got impressed by the impact it has on your life, both as an employee and/or as an entrepreneur?