Connecteam https://connecteam.com/ 100% Of the Business Processes You Need Under One Roof, for Free Wed, 26 Jun 2024 20:07:14 +0000 en-US hourly 1 How To Make a Work Schedule in Excel: Guide + Free Template https://connecteam.com/e-work-schedule-excel/ https://connecteam.com/e-work-schedule-excel/#respond Wed, 26 Jun 2024 20:05:40 +0000 https://connecteam.com/?p=135554 Learn how to make a work schedule in Excel in a few easy steps. Creating a work schedule in Microsoft Excel is a great way to quickly visualize the week ahead or build a custom schedule for your employees. However, it’s important to ensure your Excel schedule is laid out clearly. Otherwise, you and your...

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Learn how to make a work schedule in Excel in a few easy steps.

Creating a work schedule in Microsoft Excel is a great way to quickly visualize the week ahead or build a custom schedule for your employees. However, it’s important to ensure your Excel schedule is laid out clearly. Otherwise, you and your employees could miss shifts or meetings. 

In this guide, we’ll explain how to make a work schedule in Excel and share a free template you can use to get started.

Key Takeaways

  • To make a work schedule in Excel, download our free Excel template, adjust the dates, and then add your shifts to create an Excel work schedule in minutes. You can customize your schedule with color-coding, cell borders, and more.
  • Excel schedules can work well for small teams, but they lack the flexibility that larger businesses need. Dedicated team scheduling software like Connecteam helps you build advanced schedules, maintain compliance, and reduce no-shows.

Step 1: Create Your Template

We’ll focus on how to create a weekly Excel work schedule where each day is divided into shifts that don’t overlap. While more complex schedules are possible in Excel, these are much more challenging to create using this program.

There are 2 ways to start making a work schedule in Excel: you can use our pre-made template and customize it, or start from scratch and create your own template. We cover both approaches in detail so you can develop the perfect scheduling template to reuse from week to week.

📚 This Might Interest You:

Check out W3School’s introduction to Excel course if you’re completely new to spreadsheet software.

Use our Excel schedule template

The easiest way to create a work schedule in Excel is to download our free weekly schedule template. With our template, you can choose the week and hours you want to schedule, then dive straight into adding your shifts. You don’t have to manually add days and times, making the process much faster.

Open the template

To get started with our template, double-click on the downloaded file to open it. Depending on your version of Excel, it may open the template in Protected View, which doesn’t allow editing. If your template is in Protected View, click the Enable Editing button at the top of the spreadsheet to activate editing. (This button is usually located within a yellow banner.) 

💡 Pro Tip:

The locations of various buttons and functions will vary depending on which version of Excel you’re using. If you’re having trouble finding something in Excel, refer to the Help section for specific instructions. You can also search for solutions in the Microsoft Support forums.

Choose date and time ranges

Our template lets you select the date range and starting time for your schedule. In cell A2, enter the date of the first day of the week you want to schedule. Our template uses Monday as the first day of the week, so you must enter a Monday date in this cell. (Failing to do this will result in scheduling errors.) In cell B2, enter the time you want your schedule to start. The template will update automatically.

Example schedule in Excel with color-coded employee shifts.

Build your own scheduling spreadsheet

If you prefer to create your own scheduling spreadsheet instead of using our template, you can set up a custom schedule following these steps.

Add week and starting time

The first step to making a schedule in Excel from a blank spreadsheet is to set the date and time ranges for your schedule. Select cell A1 and enter Starting Date. In cell B1, enter Schedule Start Time.

In cell A2, enter the date that your week will begin using the format MM/DD/YYYY. You can decide whether your week should begin on a Sunday, Monday, or a different day. 

In cell B2, enter the time you want your schedule to start at—for example, 8:00 AM

Starting date and time for a work schedule in Excel.

Prepare your schedule’s frame

Next, you can add the days of the week and time intervals to your schedule.

Add the days of the week starting in cell B4 and extending horizontally to cell H4. Make sure that you start with the same day of the week that you chose in Step 1 (i.e., if your week starts on Monday, enter Monday in cell B4).

In cell B5, enter =A2 to add the date you inputted into cell A2. Enter =B5+1 in cell C5, then extend the formula to the right to add the date to each day of the week. You can do this by clicking on the square in the bottom-right corner of cell C5 and dragging your mouse over to cell H5.

In cell A6, enter =B2 to add the starting time of your schedule. Then enter =A6+Time(0,30,0) in cell A7 and extend the formula down to the last time you want to include in your schedule. This creates a list of 30-minute time intervals down the left side of your schedule.

You can modify the “30” in this formula to schedule it in 15 or 60-minute increments. Shorter or longer increments are also possible as long as they are entered in minutes (for example, to enter 2 hours, you must enter “120” minutes).

Adding 30-minute increments to the rows of your Excel spreadsheet.
Adding 30-minute increments to the rows of your Excel spreadsheet is simple with this formula.

Step 2: Add Your Shifts

Now you’re ready to add shifts to either our template or your own custom scheduling spreadsheet. 

If you’ve created your own custom scheduling spreadsheet, the best way to do this is to write out an easy-to-read description of your shift in the cell corresponding to its day and start time.

For example, say you want to schedule employees to shifts, and your first shift starts at 8:00 am on Monday. In the corresponding cell, enter a description like “Shift: John Doe” or “Morning shift: Trina, Todd, Jamie.” You can add more detailed information to shift descriptions, such as the location or information employees need to know.

Then select all the cells from the shift’s start time to its end time. In the ribbon above your spreadsheet, click Merge, then select Merge and Center to create one large cell that spans the shift’s entire duration. Click the Align icon (it looks like a stack of horizontal lines), then select Middle Align to move the text to the center of the cell.

Add shifts to a work schedule in Excel by merging cells.
Add shifts to a work schedule in Excel by merging cells.

Repeat this process for all shifts you want to add to your schedule.

If you need to unmerge cells, select the cell and click Merge, then Unmerge. 

To use our template, you can use the shifts we’ve created or create your own. To create your own shifts, you’ll need to unmerge the cells so that you can follow the steps above for adding your own custom shifts.

Step 3: Customize Your Schedule’s Look

At this point, you have a functional schedule. However, a few customizations can make your schedule more visually appealing and ensure that you and your employees don’t miss shifts.

Highlighting your frame

A great place to start customizing your schedule is to highlight the days of the weeks and schedule times. Select the cells you want to highlight, then click on the paint bucket icon and choose a fill color. It’s a good idea to use the same color for the days of the week and times of day to create an easy-to-see frame for your schedule.

You can also increase the font size of the days of the week and times, use bold text, or even change the text color to ensure this key information stands out.

 A gif of the process of adding a colored frame to a work schedule in Excel
Chose colors for your frame highlight that are easy to see and stand out against the bright background

Color-coding shifts

It’s also a good idea to color-code shifts on your schedule according to the employee they’re assigned to or the shift type. That way, it’s easy for your employees to see when they must be at work.

You can color-code shifts manually using the fill color tool. Alternatively, you can use Excel’s conditional formatting rules to automatically color-code your shifts.

As an example, say you’re creating a shift schedule where you’ve assigned each shift to one employee—and want to assign a different color to each employee. Select all the shift cells in your schedule, then click Conditional Formatting. Select Highlight Cell Rules, then Text that Contains.

Color-coding shifts in an Excel work schedule using conditional formatting.
Color-code shifts in an Excel work schedule using conditional formatting.

In the formatting box that appears, enter the name of one of your employees and assign them a color. To do this, click Format with, then Custom format. Then select Fill and select a color from the dropdown menu. When you’re finished, click Done. (The exact steps may vary depending on your version of Excel, so use additional support if necessary.) 

Excel will automatically highlight all cells that contain that employee’s name the color you chose. You can repeat this process for all of your employees, assigning each one a unique color. 

Please note that the above method won’t work if you’re assigning multiple employees to each shift. In that case, you might want to come up with a different color coding approach—for example, you might use a specific color for the morning shifts and another color for the afternoon shifts. 

To use conditional formatting to color code these shifts, include the name of each shift (e.g., “morning shift”) within the shift. Then, enter this name in the formatting box that appears when you follow the above conditional formatting instructions. 

Example of a weekly schedule in Excel with color-coded morning and afternoon shifts. 
Example of a weekly schedule in Excel with color-coded morning and afternoon shifts. 

💡 Pro Tip:

Don’t go overboard when color-coding shifts. Trying to use unique colors for different combinations of employee, shift type, and shift location can be confusing and cause employees to miss shifts. 

Cell borders

Adding borders to your cells can also increase the visual clarity of your Excel schedule. Select all the shift cells of your schedule and click the Borders icon (it looks like a window pane), then All Borders. You can then further customize the look of your borders using the Border Color and Border Style options within the Borders menu.

Adding cell borders to a work schedule in Excel.
Add cell borders to a work schedule to make the schedule easier to read.

🧠 Did You Know?

Excel has its own programming language called Visual Basic. You can use this to customize your schedule further and add automations, like sending shift reminders to employees by email.

Step 4: Save Your Schedule

When your schedule is finished, remember to save it as an Excel file (.XLSX) or CSV and share it with your employees.

When creating schedules for future weeks, you can open your current schedule and use it as a template. However, you should never overwrite schedules—keeping them is important for compliance with labor regulations, and they could be important if you face a labor dispute.

Save each new weekly schedule with a unique filename that includes your business name, what the schedule is for (e.g., a department or location), and the time period covered by the schedule. A good example is “My Restaurant – Kitchen – June 1-7.” You can keep all your saved schedules in the same folder on your computer so they’re easy to find.

💡 Pro Tip:

Make sure employees have a way to view your schedule on their mobile device. It may be helpful to share your schedule in multiple formats, including as a PDF or JPG.

It’s easy to use your personalized Excel schedule as a template for future weeks. Just highlight all the shift cells and click Merge, then Unmerge Cells. Now you can add new shifts to your schedule and stretch them to the appropriate duration.

Creating Schedules With Overlapping Shifts in Excel

Creating schedules with overlapping shifts is possible in Excel, but it’s complicated and time consuming since it takes so much manual work. 

Here’s one way to do it. 

Instead of a weekly schedule, create a daily schedule by setting up time intervals representing the hours your business operates in the top row of your spreadsheet (e.g., 5:00 am, 6:00 am, etc.). (You can use a variation of the Time formula from Step 1 up above to do this quickly.)  

Then, list your workers’ names in the leftmost column of your spreadsheet. Merge cells horizontally across the schedule to represent the duration of each employee’s shift, and use different colors to distinguish between various tasks and shifts for easy visualization. 

Here’s what this can look like: 

Example daily work schedule for a cafe showing overlapping shifts for employees with color-coded tasks.
This example daily work schedule for a cafe shows overlapping shifts for employees with color-coded tasks.

You’ll need to create a separate schedule for each day your business is open, so your employees will have to check each day’s schedule individually. This can make it difficult to keep track of shifts across the week and can lead to employees missing work.

Creating Schedules in Excel vs. Scheduling Software

Making a schedule in Excel can be a good solution for businesses with only a few employees to schedule or uncomplicated shift patterns. However, building schedules in Excel can quickly get complicated as your business grows. You must make sure everyone is scheduled to the right shift and keep track of employees’ time off—all while ensuring employees have the necessary qualifications for certain shifts.

That’s where dedicated scheduling software like Connecteam can come in handy. Connecteam makes it easy to build custom schedules of any complexity in minutes.

Let’s take a closer look at just how creating a schedule in Excel vs. using scheduling software like Connecteam stack up. 

Building your work schedule

When building schedules in Excel, you must assign employees to shifts manually one at a time. It’s a time-consuming process that’s also prone to errors—you could accidentally assign team members to conflicting shifts or give a single employee many more hours than their colleagues.

It’s also difficult to build more complex work schedules in Excel. It can be very complicated to create a schedule with multiple employees working—particularly if they have overlapping shifts.

An illustration showing Connecteam’s scheduling interface

Schedule software is designed to make it easy to create complex schedules. For example, with Connecteam, you can assign multiple employees to a single shift or create overlapping shifts. Connecteam also automates schedule creation with a 1-click scheduling feature that automatically assigns employees to shifts based on their availability, work hour preferences, and qualifications. 

Finally, Connecteam ensures shifts are distributed equally and works to minimize the amount your business has to spend on overtime. It’s a great way to save time and reduce scheduling errors.

📚 This Might Interest You:

Check out our complete guide to schedule employees.

Validating shifts

Dedicated scheduling software typically has automatic shift validation to ensure that your schedule is correct. For example, in Connecteam, you’ll get a notification if you assign an employee overtime or try to assign them to a shift that requires qualifications they don’t have. Connecteam can also flag potential compliance issues, such as forgetting to give an employee required break periods.

This kind of automatic validation isn’t possible in Excel unless you know how to code in Visual Basic.

Communicating with employees

Another limitation to Excel is that if employees have questions about their schedule or can’t take a shift, communicating about this is difficult. You can leave comments on shared Excel spreadsheets, but employees and managers may not see this in time to proactively solve problems.

picture of connecteam's schedule on a cell phone

Not all scheduling software offers a way to communicate with employees, but Connecteam does. It automatically sends employees a notification when they’re assigned to a shift. Connecteam also includes integrated team instant messaging so that managers and employees can easily communicate about shifts. Group messages offer an easy way to find potential replacements for a shift or check in with employees ahead of a busy week. 

Enabling shift swaps

Enabling employees to swap shifts is a great way to ensure all of your business’s tasks are covered while giving employees more flexibility to shape their schedules. Unfortunately, shift swapping isn’t possible in Excel—employees must agree to a swap and then contact their manager to make a change to the schedule.

With scheduling software like Connecteam, employees can organize a shift swap in the app and send the proposed change to their manager for approval. It’s very easy, and Connecteam’s shift validation rules ensure swaps don’t result in unnecessary overtime or compliance issues. 

Adding information to shifts

Connecteam and other schedule platforms enable you to attach documents, forms, checklists, photos, and more to a shift. That ensures employees have the information they need to work effectively when they show up for a shift.

As employees complete tasks during a shift, your schedule will update in real time to show their progress. So, you get a live overview of how employees’ work is going.

In contrast, the only way to attach extra information to a shift in Excel is to use comments. This is very limited, as you can only include text or links. It’s also easy for employees to miss comments on cells that may contain important information.

Reducing no-shows

Once you create a work schedule in Excel, you can share it with employees—but that’s it. If you want to remind employees about an upcoming shift, you must do so manually. In addition, complex Excel schedules can be visually overloaded and confusing for employees to interpret, potentially leading to missed shifts.

Connecteam, on the other hand, can automatically send push notifications to an employee’s phone to remind them of an upcoming shift. This is a highly effective way to prevent disruptive no-shows.

Create Your Work Schedule Today

Creating a work schedule in Excel is easy with our ready-to-use template. Just download our scheduling spreadsheet, add shifts, and assign employees to work. You can also improve your schedule with color-coding to make it easier for employees to see what shifts they’re assigned to.

While Excel can work well for scheduling small teams to simple shift patterns, it has very limited functionality compared to dedicated scheduling software like Connecteam. Connecteam helps you automatically schedule employees to work, maintain compliance, eliminate no-shows, and more.

Get started for free with Connecteam to see how it can help you create custom employee schedules in minutes.

FAQs

Should I use Excel to make a work schedule?

Small businesses may be able to use Excel to make simple work schedules, but it’s not a good solution for larger businesses. Excel doesn’t offer ways to remind employees about upcoming shifts or ensure that employees have the qualifications required for a shift. It also can’t alert you to scheduling conflicts or uneven shift distributions.

How do I create work shifts in Excel?

You can create work shifts in an Excel spreadsheet by first assigning a time to each row of a blank workbook (e.g., 9:00 am, 9:15 am, 9:30 am, and so on). Then select all cells from the start of the shift you want to its end—and click Merge and Center to combine them into a single cell that represents your shift.

Is free scheduling software better than Excel?

Free employee scheduling software like Connecteam can be much more effective for creating work schedules than Excel. Connecteam can automatically assign employees to shifts in a single click and will remind them about upcoming shifts. Connecteam also makes it easy to reduce overtime and add shift information (like checklists) that employees need to hit the ground running.

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What Is a 5/40 Work Schedule? https://connecteam.com/e-5-40-work-schedule/ https://connecteam.com/e-5-40-work-schedule/#respond Tue, 25 Jun 2024 17:42:51 +0000 https://connecteam.com/?p=135483 The 5/40 work schedule is the most commonly used schedule, in which employees work 8-hour shifts 5 days per week. We help you decide if it’s right for your business and look at popular variations. A 5/40 schedule is the most commonly used work schedule in the US. It requires employees to work 8-hour shifts...

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The 5/40 work schedule is the most commonly used schedule, in which employees work 8-hour shifts 5 days per week. We help you decide if it’s right for your business and look at popular variations.

A 5/40 schedule is the most commonly used work schedule in the US. It requires employees to work 8-hour shifts 5 days a week—for a total of 40 hours per week.

However, just because the 5/40 schedule is popular doesn’t mean it’s the best fit for every business.

In this guide, we explain how the 5/40 schedule works, discuss its advantages and drawbacks, and share some alternative work schedules.

Key Takeaways

  • The 5/40 work schedule requires employees to work five 8-hour days in a row, followed by two days off.
  • A 5/40 work schedule matches norms in the US and offers some support for work-life balance. However, it isn’t good for maximizing productivity and offers little flexibility.
  • Alternatives to the standard 5/40 schedule include compressed, 5-4/9, and flexible schedules. These schedules can boost productivity and enable employees to establish better work-life balance.

What Is a 5/40 Work Schedule?

In a 5/40 work schedule, employees are required to work 8 hours a day, 5 days in a row, followed by 2 days off. Employees work 40 hours per week and always work the same days each week. 

The 5/40 schedule is the most commonly used schedule in the US, especially for office workers. An example of a 5/40 work schedule is someone working 9am-5pm, Monday through Friday.

Diagram of 5/40 work schedule. Blue indicates a work day. White indicates a day off.
Blue indicates a work day. White indicates a day off.

History of the 5/40 Work Schedule

The history of the 5/40 work schedule dates back to 1926 when Henry Ford instituted it across his automobile factories.

Ford found that limiting employees to 40 hours per week increased productivity, and other manufacturers soon followed his example.

In 1940, the 40-hour work week was codified in the US through the Fair Labor Standard Act.

Under the law, employees who worked more than 40 hours per week would have to be paid overtime. This incentivized employers to organize work around a 5/40 schedule.

Though the 5/40 work schedule has become the standard in the US, there have been efforts to challenge it.

A growing number of companies have experimented with 4-day work weeks and other alternative work schedules that give employees more flexibility. 

Pros and Cons of the 5/40 Schedule

There are both advantages and disadvantages to using a 5/40 schedule.

Pros

  • Benefits for employees’ personal schedules: Since most businesses use a 5/40 schedule, employees’ schedules will be aligned with those of their friends and family when they’re off work. In addition, employees always work the same days each week, so they can plan their personal calendars far in advance.
  • 5-day weeks meet customer expectations: Most customers expect businesses to be open 5 days a week, and the 5/40 schedule caters to this.
  • Can help avoid stress: Though some studies show shorter work weeks can lower stress, others have shown that reducing employees’ hours can sometimes increase stress as workers rush to finish their tasks. The 5/40 schedule gives employees more hours per week and, thus, more time to complete their work.
  • Lowers management costs: Since the 5/40 schedule is so commonly used, it’s easy to manage without complex or custom scheduling solutions.
  • Minimizes overtime pay: Employees are scheduled for only 40 hours a week of work in a 5/40 schedule, so you typically won’t have to pay overtime. It’s also easy to monitor when employees are working overtime and require them to stick to 8 hours a day to limit overtime expenses.

Cons

  • 8-hour days aren’t good for productivity: Research has shown that the best number of hours to work for maximizing productivity is no more than 6. In an 8-hour day, employees could be working unproductively for several hours every day.
  • Can contribute to employee burnout: Many employees find that a 2-day weekend isn’t enough time to rest and recover between work weeks. This can lead to increased employee burnout.
  • Not flexible to meet variable demand: 8-hour work days are relatively inflexible. Employees may have a lot of work one day and little the next, but they still need to work 8 hours each day—leading to one stressful day and then a day with wasted time.

Variations on the 5/40 Schedule

Many variations on the 5/40 schedule have been developed to give employees more flexibility and increase productivity. Let’s examine some of the most common variations below.

Compressed schedules

In a compressed schedule, employees work 40 hours per week in fewer than 5 days. Usually, compressed schedules involve 4 10-hour days. This gives employees 3 days between work, which can help boost work-life balance and reduce burnout.

💡 Pro Tip:

If you plan to implement a compressed schedule, ensure your employees aren’t overly stressed by 10-hour work days. When employees push themselves too hard during the week, it can offset the benefits of having an extra day off and lead to higher rates of burnout.

5-4/9 schedules

A 5-4/9 schedule can be less stressful for employees than a compressed schedule. In a 5-4/9 schedule, employees work 9-hour days instead of 8-hour days.

They’ll work 5 days one week followed by 4 days the next, for a total of 80 hours worked every 2 weeks. 

Basically, employees work the same amount as in a standard 5/40 schedule but get an extra day off every other week.

Flexible work schedules

While a standardized schedule requires employees to show up for work at the same time every day, a flexible 5/40 schedule doesn’t.

Employees can choose when to work as long as they work 8 hours per day or 40 hours per week.

Flexible work schedules give employees more autonomy and can improve work-life balance. However, not having all employees at work at the same time can stifle innovation and increase social isolation at work.

Some businesses solve this by requiring employees to work several core hours each day, then giving them the flexibility to determine the rest of their daily schedule.

💡 Pro Tip: 

You might try a flexible work schedule for a month to see if it’s right for your business. Workforce management software like Connecteam makes implementing this schedule easy!

You can even share surveys to measure employees’ work satisfaction before and after you trial the new schedule.

connecteam's employee scheduler

Conclusion

The 5/40 schedule is the most commonly used work schedule in the US. Employees work 5 consecutive 8-hour days for a total of 40 hours per week.

The 5/40 schedule is easy to fit personal commitments around and might help reduce stress, but it isn’t good for employee productivity.

Variations such as compressed schedules and 5-4/9 schedules can offer more flexibility.

Whether your business needs a standard 5/40 schedule or a variation, Connecteam can help.

Try Connecteam free today to start scheduling your employees and maximize your business’s productivity.

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What Is a Southern Swing Shift? https://connecteam.com/e-southern-swing-shift/ https://connecteam.com/e-southern-swing-shift/#respond Tue, 25 Jun 2024 15:19:46 +0000 https://connecteam.com/?p=135469 The Southern swing shift is a work schedule in which four teams work together in eight-hour shifts to provide 24/7 coverage. We explain how it works and help you decide if it’s right for your business. Businesses that operate 24/7 need a work schedule that ensures continuous coverage while giving employees sufficient time to rest...

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The Southern swing shift is a work schedule in which four teams work together in eight-hour shifts to provide 24/7 coverage. We explain how it works and help you decide if it’s right for your business.

Businesses that operate 24/7 need a work schedule that ensures continuous coverage while giving employees sufficient time to rest and recharge between shifts. One popular schedule that achieves this balance is the Southern swing shift schedule.

In this guide, we explain how the Southern swing shift schedule works, as well as its advantages and disadvantages, to help you decide if it’s the right choice for your workforce.

Key Takeaways

  • The Southern swing schedule is a rotating shift schedule that involves 4 teams of employees working in 8-hour shifts. Employees work 7 day shifts, 7 swing shifts (usually running from the afternoon to late evening), and then 7 night shifts, with 2-3 days of rest in between.
  • Compared to other 24/7 schedules, the Southern swing shift gives employees more time to adjust to each shift rotation. It also minimizes overtime.
  • The Southern swing schedule works well for manufacturing, energy, and healthcare businesses because it gives employees plenty of time to recharge between shifts.

What Is the Southern Swing Shift Schedule?

The Southern swing schedule is a 24/7 work schedule that enables businesses to operate around the clock without burning out employees. 

To use this schedule, divide your 24-hour working days into 3 8-hour shifts and group your employees into 4 teams. Each team works 7 days in a row, followed by 2 or 3 days off, cycling through day shifts, swing shifts (usually covering the afternoon to late evening), and night shifts.

Here’s what the schedule looks like:

7 day shifts – 2 days off – 7 swing shifts – 2 days off – 7 night shifts – 3 days off

This creates a 28-day pattern that begins again after employees finish their 3 days off.

A typical Southern swing shift schedule may have a day shift from 8am-4pm, a swing shift from 4pm-12am, and a night shift from 12am-8am. However, you can adjust the timing of these shifts to better suit your business.

As you can see, the Southern swing shift rotation requires employees to transition from day shifts to swing shifts to night shifts each time they return to work after days off. This shift rotation means all employees are assigned equal numbers of day, swing, and night shifts in each 28-day cycle. It also ensures you have consistent coverage 24/7.

To make the Southern swing shift schedule work, each team of employees will start at a different point in the 28-day cycle. This diagram shows how this works in practice: orange indicates a day shift, blue indicates a swing shift, purple indicates a night shift, and white indicates a day off.

Diagram of a Southern swing shift schedule showing the full 28-day cycle. Orange indicates a day shift, blue indicates a swing shift, purple indicates a night shift, and white indicates a day off.
Diagram of a Southern swing shift schedule showing the full 28-day cycle. Orange indicates a day shift, blue indicates a swing shift, purple indicates a night shift, and white indicates a day off.

The number of hours employees work in a Southern swing schedule varies from week to week. They’ll work 56 hours (7 consecutive days) in 1 week, 40 hours the next 2 weeks, and 32 hours the following week. This means you’ll need to pay overtime to only 1 team per week during the 4-week cycle.

Who Uses the Southern Swing Shift Rotation?

The Southern swing shift is popular among businesses that need employees to be alert and focused throughout their shifts. Under this schedule, employees work 8-hour shifts instead of the 10-12-hour shifts required by many alternative 24/7 work schedules. So, they’re less likely to be tired by the end of a shift.

Industries that frequently use the Southern swing shift schedule include:

  • Manufacturing.
  • Energy.
  • Healthcare.
  • Trucking.
  • Emergency services.

Benefits of the Southern Swing Shift Pattern

Southern swing shift pattern has several advantages over other 24/7 schedules.

8-hour shifts

The most important benefit of the Southern swing rotation is that it only requires employees to work 8-hour shifts. In contrast, many other 24/7 work schedules—including the DuPont shift schedule and 4 on, 4 off shift schedule—require employees to work 12-hour shifts.

Shorter shifts are beneficial because employees can remain focused throughout their shift and will feel less tired by the end of a workday. That can lead to safer working conditions during each shift—which is especially important if your employees work with dangerous manufacturing equipment or in high-stakes situations such as emergency medical care.

Time to adjust to shift rotation

The Southern swing shift pattern is closely related to the continental shift pattern. The main difference between them is that in the Southern swing shift, employees rotate between day, swing, and night shifts between each 7-day work period. In the continental shift pattern, employees rotate shifts within each 7-day work period.

Diagram of a continental swing shift schedule. Orange indicates a day shift, blue indicates a swing shift, purple indicates a night shift, and white indicates a day off.
Diagram of a continental swing shift schedule. Orange indicates a day shift, blue indicates a swing shift, purple indicates a night shift, and white indicates a day off.

The Southern swing shift rotation gives employees more time to adjust their circadian rhythm to each shift change. That can be better for employees’ mental health and ensure they don’t show up to shifts fatigued. 

The slower shift rotation pace can also help employees maintain work-life balance. For example, an employee can plan an entire week with friends and family around a fixed shift rather than having to shift their social schedule every other day.

Equal shift distribution

Another nice thing about the Southern swing schedule is that all employees work the same number of day, swing, and night shifts in each 28-day cycle. No employees are forced into working an unfair number of less desirable swing or night shifts.

This fairness is a huge benefit of rotating shifts. It’s good for employee morale and can reduce conflict among employees.

Offers one weekend off per month

The Southern swing schedule is also noteworthy because it guarantees employees 1 weekend off in each 28-day cycle. Many alternative 24/7 schedules offer weekends off less frequently—or not at all.

Drawbacks of the Southern Shift Pattern

The Southern swing shift pattern has a few disadvantages that you should consider before implementing it at your business.

Limited rest periods

The Southern swing schedule requires employees to work 7 days in a row, split up by only 2-3 days off. That isn’t a lot of dedicated rest time compared to other 24/7 schedules—despite the shorter working days. For example, in a Pitman shift schedule, employees get 2-3 days off after working just 2-3 days in a row. Meanwhile, a 4 on, 4 off schedule offers employees 4 days off at a time.

Over the long run, this limited rest can contribute to employee burnout and a high employee turnover rate. As one shift worker wrote, “I’ve worked Southern swing shift and a 2-2-3 schedule. Working shift in a plant is a great way to begin your career. You see a ton of different things and are forced to learn decision-making on the fly. Is it good for your long-term health? Probably not. But for a year or two as a young buck, you’ll be fine.”

📚 This Might Interest You:

Check out our guide to reducing employee burnout to learn how to keep your employees motivated when working a Southern swing shift schedule.

Requires overtime pay

Though the Southern swing schedule requires less overtime than most 24/7 work schedules, you’ll still have to pay employees overtime.

For one week per 28-day cycle, employees will work 7 days in a row for a total of 56 hours. That means you’ll pay 16 hours of overtime per week and 64 hours of overtime per cycle.

Requires shift rotation

The Southern swing schedule requires employees to rotate from day to swing to night shifts between each 7-day work period. It cannot be used with fixed shifts, where employees always work the same shift.

While rotating shift work is more equitable for employees, it can also be challenging. Employees must be able to adapt their sleep schedules from one week to the next and can become fatigued. It can also be difficult for employees to set aside time for family and friends when rotating shifts, potentially leading to increased social isolation.

Other 24/7 schedules—like the Pitman shift schedule, 4 on, 3 off, and 4 on, 4 off schedules—offer the flexibility to give employees fixed shifts.

Is the Southern Swing Shift Rotation Right for Your Business?

Here are some important things to consider when deciding if the southern swing shift pattern is right for your business.

Do you need 8-hour shifts?

The main advantage of the Southern swing schedule is that it offers 8-hour shifts instead of 10, 12, or even 24-hour shifts. These shorter shifts are best for situations where employees are working in high-stress or dangerous environments or where fatigue-related mistakes can be extremely costly.

If your shifts aren’t as demanding or require employees to work intermittently, it’s worth considering an alternative shift pattern with longer shifts. Examples include Panama (2-2-3), Pitman, and DuPont shift patterns.

Is work balanced across shifts?

The Southern swing schedule works best if there’s a roughly equal amount of work to do across your business’s day, swing, and night shifts. That’s because you’ll have the same number of employees assigned to work each shift. If there’s a lot less work during night shifts than during day shifts, your employees may not have enough to do when they rotate to night shifts.

You can remedy this by hiring additional employees who only work a single shift—but that increases the complexity of managing your business’s schedule. A better solution may be to break your schedule into 12-hour shifts with frequent rotations between day and night shifts. Panama, DuPont, and 4 on, 4 off schedules work well for this.

How to Implement a Southern Swing Schedule

Transitioning to a Southern swing schedule can be a big change for your employees, especially if you’re not already operating a 24/7 work schedule. Here are 3 things you can do to ensure a smooth transition:

Prepare your team

Pushback from employees is one of the biggest issues businesses face when changing shift schedules. The best way to minimize this is to give your workers several months’ notice before switching to the new schedule, talk with them, and prepare them for the change.

Clearly explain why you chose the Southern swing schedule, including its benefits and drawbacks, and take time to answer employees’ questions. The more employees feel involved in the process, the more receptive they’ll be to the schedule change. 

📚 This Might Interest You:

Curious about introducing other types of shifts at your business? Check out our guide to implementing a night shift.

Consult a labor attorney

In most cases, there are no legal restrictions on switching to a Southern swing rotation. However, some states, like California, have laws requiring employees to approve 24/7 work schedules. Additionally, Illinois has a law that requires employees to have 1 day of rest in every 7-day work period, which makes the Southern swing schedule impossible in that state. 

That’s why it’s a good idea to consult a labor attorney before switching to a Southern swing schedule. They can help you navigate these regulations.

Use scheduling software

Employee scheduling software like Connecteam makes it much easier to implement and manage a Southern swing schedule. Connecteam not only lets you schedule employees in just a few clicks but also sends employees reminders on their mobile devices so they never miss a shift.

An illustration showing Connecteam’s scheduling interface

Plus, Connecteam tracks employees’ attendance and working hours. That makes it easy to calculate overtime and benefits when using a Southern swing schedule.

🧠 Did You Know?

Connecteam also enables employees to swap shifts with your approval. So, it’s straightforward for employees to change shifts for a day when they need to attend a family event, doctor’s appointment, or other personal commitment.

Conclusion

The Southern swing shift is a 24/7 work schedule in which employees work 8-hour shifts, transitioning from day to swing to night shifts in a 28-day cycle. It’s a good option for businesses that have high-stress or dangerous work environments and need employees to perform at their best.

You can use Connecteam to easily build and manage your Southern swing schedule. Connecteam offers tools to help you create the perfect schedule, communicate with your employees, track hours for payroll, and much more.

Try Connecteam free today to see how it can help your business operate around the clock!

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Create an Effective Business Plan: A Step-by-Step Guide https://connecteam.com/e-how-to-write-a-business-plan/ https://connecteam.com/e-how-to-write-a-business-plan/#respond Thu, 20 Jun 2024 08:55:47 +0000 https://connecteam.com/?p=127092 Don’t let the thought of writing a business plan intimidate you. Our comprehensive guide breaks it down into manageable steps so you can create a plan that will help you achieve your goals. Creating a strong business plan is the first step in your entrepreneurial journey to start a business. It gives your business a...

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Don’t let the thought of writing a business plan intimidate you. Our comprehensive guide breaks it down into manageable steps so you can create a plan that will help you achieve your goals.

Creating a strong business plan is the first step in your entrepreneurial journey to start a business. It gives your business a sense of direction and helps you make strategic decisions.

However, crafting one can seem intimidating. It involves organizing your ideas, determining the right structure, performing market research, projecting finances, and expressing a clear vision for your business.

To lend you a hand, we’ve created this comprehensive guide on how to write a business plan. We break the process down into 9 key steps and offer tips and resources to help you get started.

Key Takeaways

  • A business plan is a document that outlines a business’s goals, strategies, and financial projections.
  • It helps you clarify your vision, set goals, align strategies, track progress, identify strengths and weaknesses, and mitigate risks.
  • It typically includes an executive summary, company description, product or service details, market analysis, marketing and sales plan, financial analysis, and projections.
  • Business plans should be regularly updated to reflect changes in the company and market conditions.

Why Write a Business Plan?

Understanding how to create a business plan is vital for any budding entrepreneur. But why are business plans so important?

A comprehensive business plan demonstrates to investors your preparedness, showcases your business potential, and provides a clear blueprint for the future. Investors are more likely to offer funding if they see you have a solid plan in place and a strategic vision for success.

Even if you aren’t seeking funding, a business plan serves as a roadmap for your entrepreneurial journey. It helps you chart a course from where you are now to where you want to be in the future. By outlining your goals, strategies, and action steps, a business plan provides a framework for decision-making and keeps you focused on your long-term objectives.

Here are some examples of what a great business plan can help you ‌do.

  • Clarify your vision. You might have a brilliant idea, but until you put it down on paper, it remains an abstract thought. A business plan helps you make your idea concrete and express it to others.
  • Set realistic and measurable objectives. It can be hard to see the bigger picture when you’re in the thick of starting a business. A business plan allows you to define achievable goals, which is crucial for tracking your progress and making informed decisions.
  • Align your strategies with your goals. Every business needs strategies to achieve its objectives. These approaches should be rooted in a thorough understanding of your industry, market, customers, and competitors. A business plan helps you map out these tactics, ensuring they’re aligned with your aims and are feasible with your resources.
  • Track progress and performance. A business plan isn’t just a document you write once and forget. It’s something you should update regularly. Compare your actual performance against your plan to identify areas where you’re falling short. Then, make the necessary adjustments.
  • Identify strengths and weaknesses. As you’re writing your business plan, you’ll likely uncover strengths you didn’t realize you had and weaknesses you hadn’t considered. This knowledge can help you capitalize on your strong points and address your shortcomings, positioning your company for success.
  • Mitigate risks and challenges: Every company faces uncertainties and obstacles. A business plan enables you to anticipate these obstacles and formulate avoidance plans. This proactive approach can save you time, money, and stress in the long run.

🧠 Did You Know? 

Entrepreneurs who take the time to create a business plan are 152% more likely to start their business.

How to Write a Business Plan in 9 Steps

Step 1: Write an executive summary

Your executive summary is a concise overview of the key elements of your business plan. It summarizes the business concept, market analysis, competitive advantage, target market, financial projections, and overall strategy. 

It’s also the part investors or partners considering your proposal will read first. Thus, you must capture their attention and make them want to learn more about your business.

Executive summaries can vary based on the purpose of the business plan. For example:

  • If you’re looking for funding, your executive summary should highlight the growth potential, profitability, unique selling proposition, and financial projections of your company. 
  • If your business plan is mostly for internal use, the executive summary should emphasize strategy, milestones, and action plans.

The executive summary is placed at the beginning of a business plan, but it’s often best to write the summary last. This allows you to distill the most important points from each section of your completed plan.

So, how do you craft an effective executive summary? Follow these steps.

  1. Start with a strong opening. Your first sentence should hook the reader. Think of this as your elevator pitch. It should briefly explain what your business does and why it will be successful.
  2. Summarize your mission and vision statements. Your mission statement defines your company’s business, its objectives, and how it will reach these company goals. Your vision statement describes the desired future position of your company. Both are essential in setting the tone for the rest of your business strategy.
  3. Describe your product or service. What problem does it solve? What makes it unique or superior to the competition? Be concise and focus on the value you provide to the customer.
  4. Identify your target market. Briefly outline your target customer and why your offerings appeal to them. You’ll go into more detail in your market analysis section.
  5. Outline your competition. Describe the competitive landscape and why your business will succeed where others have failed. This shows that you understand your market and are ready to compete.
  6. Introduce your team. Include their names, professional and/or educational backgrounds, qualifications, and skills. This proves you have the team necessary to execute your business plan.
  7. Summarize your finances and funding needs. Provide an overview of your financial situation, including your revenue and profit projections. If you’re seeking funding, include how much you need and how it will be used.
  8. Craft a compelling conclusion: Leave your reader with a powerful reason to continue reading the rest of the document.

💡 Pro Tip:

The executive summary should be clear, concise, and 2 pages long at most. Avoid industry jargon and stick to the main points: your mission, product or service, target market, competition, team, financials, and funding needs.

Step 2: Describe your company

The company description offers a snapshot of your business. It gives readers a glimpse into what you do, why you do it, and how you stand out. 

Here’s how to write it.

  1. Describe your company: Include your business name, legal structure (LLC, Corporation, etc.), and ownership details.
  2. Share your history: Explain when and why you started your company and the journey so far.
  3. State your mission and vision: Your company mission defines your business’s purpose, while your company vision outlines your long-term goals.
  4. Declare your values: What ethical principles guide your business decisions? Make your company’s core values clear.
  5. Specify your objectives: What are your short and long-term goals? Make sure they’re measurable and achievable.
  6. Discuss who you are: Highlight your key team members, their roles, and their unique skills or experience that contribute to your company.
  7. Note your location: State your business location(s) and why you chose to do business there.

Your company description should capture the heart and soul of your business. It paints a picture of your identity, your aspirations, and what sets you apart from the competition.

Step 3: Describe your products and/or services

Next, focus on what you’re offering: your goods and/or services. This section should clearly state the advantages of your products or services to customers. 

Here’s how to do it.

  1. Detail your products and/or services: Describe what you’re selling. If it’s a product, how does it work, and what are its features? If it’s a service, what does the process look like, and what results can customers expect?
  2. Explain the problem you solve: Describe how what you sell solves customer problems or meets their needs. What benefits do they get from using your products or seeking your services?
  3. Discuss your unique position: Explain how your products and/or services differ from competitors. What makes you special?
  4. Describe revenue generation: Clarify how you’ll generate income. Will you sell directly to consumers, use subscription models, or license to other businesses?

Also, share details about intellectual property rights, patents, and trademarks if applicable. 

This section should leave no doubts about what your business offers and why it’s valuable to customers.

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Step 4: Conduct market analysis

The next thing to include in your business plan is a thorough analysis of your market. Your market analysis should include details on your industry, target market, and competitors, as well as a SWOT analysis. 

A well-executed market study shows you understand your sector, intended audience, and rivals. It demonstrates to potential investors that there’s a viable and profitable market for your goods.

The first step in this process is to gather information on your industry.

Gather information

Every business is different, but there are some top research resources to consider when performing market analysis:

  • Industry reports: Published online by industry associations or government agencies, they offer the latest information on trends in the sector.
  • Reputable sources: Academic journals, research firms, and government sites can give you concrete, accurate research on which to base business decisions.
  • Online databases: Provide access to market research reports, industry statistics, and a wealth of other data.
  • Surveys or focus groups: Offer valuable insights into consumer behavior and preferences directly from the public.
  • Social media search tools: Track what people are saying about your industry or competitors.
  • Competitors’ websites: These can provide valuable information on their products or services, pricing strategy, and marketing tactics.
  • Current customers: If your business is up and running, you can get industry insights directly from your customers by running surveys or measuring sales.

💡Pro Tip:

These resources aren’t just useful for market analysis. They also come in handy when you’re building your marketing and sales plan, performing financial analysis, and making financial projections for the future.

Include an industry description

Now that you’ve gathered data on your industry, it’s time to add a broad description of your industry for readers who may not be familiar with it. 

Here are some questions your industry description should answer:

  • What’s the size of the industry? 
  • Is it growing or shrinking?
  • What are the trends and characteristics? 
  • Are there any industry challenges?

Below is an example of a short industry overview that includes key details.

“Microgreens is a growing industry centered on producing and selling edible young seedlings. The industry is characterized by a focus on sustainability and health, with many microgreens producers using environmentally friendly farming practices and avoiding the use of synthetic pesticides and fertilizers.

According to a report by Gartner, the American microgreens market was valued at $540 million in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 6.6% from 2023 to 2030.

The microgreens industry faces several challenges, including high production costs and limited consumer awareness. However, the industry also sees several positive trends, including a growing interest in plant-based diets and locally sourced foods.”

Outline your target market

Now, list the details of your target market as precisely as you can.

Start by gathering data on your existing customers if you’re already in business. This includes their demographics: age, gender, income level, geographic location, and psychographic information—aka their interests, values, and attitudes. You can collect this data by surveying your customers or by analyzing your sales data. 

You’ll need to perform research into your expected customer base if you don’t have existing customers. You can do this using the resources listed above.

Once you’ve gathered this data, use it to create several customer profiles. These profiles should include information about your typical customers’ needs, preferences, and behaviors. You can use this information to identify patterns and trends in your customer base.

Here’s an example customer profile you could create based on your research:

  • Company name: Example Customer Inc.
  • Industry: Technology
  • Company size: 50-100 employees
  • Location: United States
  • Annual revenue: $1 million-$5 million
  • Target audience: Small and medium-sized businesses
  • Customer needs: Affordable and reliable technology solutions
  • Customer pain points: Limited IT resources, outdated technology

Analyzing your current and potential customer base can help you identify growth opportunities. Understanding customers’ needs and preferences is crucial for creating effective marketing campaigns, too. 

💡Pro Tip:

Once you’ve defined your target market, confirm your assumptions by conducting surveys or focus groups.

Perform competitor analysis

Here, you want to identify your competitors and their strengths and weaknesses. Below are a few ways to do it, as well as what to look for.

  • First, search for the leading companies in your industry, using the tips outlined above.
  • Look at your competitors’ websites. Analyze their product or service offerings. Do they have variety? Do they offer extra features or benefits? Look for things that set them apart, such as exclusive products, unique packaging, or superior customer service. This could be their strength. Conversely, spot any overlooked areas, such as limited payment options or poor product descriptions. These could indicate their weaknesses. 
  • Inspect their marketing strategy. Notice how they talk about their products, what keywords they use, and how they position themselves. Are they portraying themselves as cost-effective, high-quality, or eco-friendly? Identifying these strategies can help you better position your business and express its strengths.
  • Review their social media accounts. This can tell you a lot about a company’s relationship with its customers. Look at how often they post, the kind of content they share, and how much engagement (likes, comments, shares) they receive. High engagement is usually a sign of strong customer relationships. By reviewing their accounts, you can identify strategies you might want to use or avoid.
  • Analyze how your competitors price their products or services. If they’re expensive, do they offer value or benefits to justify the higher price? If they’re inexpensive, where are they cutting corners? This gives you an idea of what pricing strategies work in your market and helps you position your own pricing effectively.
  • Look through customer reviews. These provide unfiltered insights into a company’s performance. Positive reviews signify satisfied customers, while repeated negative reviews could point to unresolved issues. This helps you understand what customers value and what issues to avoid in your own business.

Add a SWOT analysis

A SWOT analysis examines your company’s strengths, weaknesses, opportunities, and threats. This exercise can help you identify opportunities for growth and areas of improvement.

Follow these steps to conduct a SWOT analysis:

  1. Identify your business’s strengths. What are you good at? What do you do better than anyone else?
  2. Identify your business’s weaknesses. What are you not so good at? What do your competitors do better than you?
  3. Identify opportunities for growth. What new markets could you enter? What new products or services could you offer?
  4. Identify potential threats to your business. What are your competitors doing? Are there any changes in regulations that could impact your business?

Here’s an example SWOT analysis that a growing bakery might make: 

StrengthsWeaknessesOpportunitiesThreats
Unique and creative recipesLimited operating hoursGrowing demand for artisanal baked goodsIncreasing competition from established bakeries
High-quality ingredientsSmall marketing budgetExpansion into online salesRising cost of ingredients and supplies
Attentive customer serviceLimited product offeringsCollaborations with local coffee shops and restaurantsChanging dietary trends and preferences

Together, your industry description, target market, competitor analysis, and SWOT analysis present a clear and realistic picture of your business environment. Including them demonstrates that you’ve done your homework and understand the challenges and opportunities in your market.

💡 Pro Tip: 

Market analysis isn’t just a one-time task. It’s something you should revisit regularly. Markets can change rapidly, and staying on top of these changes can help you adjust your business strategy accordingly.

Step 5: Outline your marketing and sales plan

In the previous step, you identified your target market, analyzed your competition, and determined potential strengths, weaknesses, opportunities, and threats. 

In the next step—building your marketing and sales plan—you’ll use this information to outline how you’ll reach and convert potential customers

Here are some things to discuss.

  • Market positioning: Identify the unique selling proposition (USP) of your product or service. What makes you different in a way that’s appealing to your target market? Are you cheaper, faster, and more environmentally friendly than others? Or are you more innovative, offer better customer support, and have more convenient locations? Use your competitor and industry research from above to identify where you fit into the industry.
  • Pricing strategy: Establish your approach to pricing and explain your rationale for it. Your price should reflect the value you offer and be competitive in your market. Perhaps you attract price-sensitive customers by offering lower prices than your competitors. Or maybe you maximize profits by charging a higher price while remaining competitive in your market. Alternatively, perhaps you build brand loyalty by offering high-quality products at prices connoisseurs will pay.
  • Promotion strategy: Detail how you’ll promote your line of products. This could include online advertising, social media, search engine optimization (SEO), content marketing, events, public relations, and more.
  • Distribution: How will customers buy your products or services? This could be through a physical store, an online shop, direct sales, or third-party distributors.
  • Sales strategy: How will you make sales? You might have a direct sales team, use e-commerce, or partner with retailers.
  • Customer retention: Specify how you will keep your customers coming back. Consider loyalty programs, excellent customer service, regular updates, or incentives for repeat purchases.

Step 6: Perform financial analysis

The financial analysis section of your business plan shows the company’s current financial status.

Don’t fret if the list of statements and reports you need to make for this seems intimidating. You can easily generate most of these statements, sheets, and reports using accounting software. Often, they’re just a click of a button away. Or, you can speak with your accountant, who can generate these reports for you.

Here are the sections to include in this section whenever possible.

Income statement

An income statement shows your company’s profitability over a specific period. It includes revenue, cost of goods sold (COGS), gross margin, operating expenses, net income, and earnings before interest and tax (EBIT).

Example of a simple income statement

💡 Pro Tip: 

You can compare income statements over time to track and analyze trends in your business’s financial performance. This can help you ‌identify patterns, changes, or inconsistencies in revenue, expenses, and profitability.

Balance sheet

A balance sheet summarizes your company’s financial situation at a specific point in time. It lists:

  • Assets: What you own
  • Liabilities: What you owe
  • Equity: Your net worth or book value
Example of a simple balance sheet

Cash flow statement

A cash flow statement shows how cash moves into and out of your business, helping you and investors understand your company’s liquidity. It can be split up monthly, quarterly, or annually.

It includes 3 categories:

  • Operating activities: Core business activities like sales, salaries, and payments to suppliers
  • Investing activities: Buying and selling assets
  • Financing activities: Borrowing and paying debt
Example of a simple cash flow statement

Return on investment (ROI) analysis

This analysis shows the efficiency of an investment. The higher the ROI, the better the opportunity for making a profit.

Below is an overview of calculating the ROI of your business venture.

  1. Determine costs: Identify and quantify all the costs associated with the project. This includes the initial investment required, ongoing operating expenses, maintenance costs, and any other relevant expenses throughout the project’s lifespan.
  2. Estimate returns: Estimate the expected returns generated by the project. This may include increased sales, cost savings, improved efficiency, additional revenue streams, or any other measurable benefits directly attributable to the project.
  3. Calculate net profit: Subtract the total costs (identified in Step 2) from the expected returns (identified in Step 3). The result is the net profit generated by the project.
  4. Calculate ROI: Divide the net profit (calculated in Step 4) by the total investment (identified in Step 2). Multiply the result by 100 to get the ROI percentage. ROI = (Net Profit / Total Investment) x 100.

Profit margin analysis

Profit margin measures a business’s profitability as a percentage. It calculates the portion of the revenue you keep as profit after deducting all the costs and expenses of producing and selling your goods and services.

A healthy profit margin is essential for sustaining operations, covering expenses, and generating income for reinvestment and growth.

Profit margin analysis helps assess a business’s viability and long-term sustainability. Consistently low or negative profit margins indicate the business is struggling to generate profits or may even be operating at a loss.

To work out the profit margin, divide your business’s net profit by its total revenue. Then, multiply the result by 100 to express it as a percentage.

Funding sources

Detail any sources of funding your business has received. This can include bank loans, angel investments, venture capital, crowdfunding, or personal funds. Mention the terms of any loans and how you plan to repay them.

Your financial analysis should be transparent, using concrete numbers and factual data. Keep in mind that investors use this section to assess your business’s viability and growth potential. 

💡 Pro Tip: 

Consider hiring an accountant or a financial professional to help if you’re unsure about anything. Mistakes in financial analysis can seriously harm your chances of securing investment or cause you to make poor business decisions based on wrong data.

Step 7: Make financial projections

The financial projection section forecasts your business’s revenue and expenses over the next 3-5 years.

Be realistic and conservative when creating these projections. Overly optimistic predictions can make the rest of your information unreliable and cause you to make bad financial decisions.

All your projections should be based on sound assumptions. These include industry and market trends, economic forecasts, and pricing strategies. State your assumptions clearly and provide reasoning for them.

In this section, include a sales forecast, expenses budget, cash flow statement, profit and loss (P&L) statement, and a balance sheet showing the figures you expect for the next 3-5 years.

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Sales forecast

A sales forecast is a projection of future sales revenue that a business expects to generate within a specific period, typically 3-5 years. Here’s how to estimate your future sales.

  1. Itemize what you sell. You can’t guess your future sales if you don’t know what you’re selling. Write down each product or service. Be precise, and your forecast will be too.
  2. Predict your sales. There’s more than one way to estimate your future sales. For example, you can look at previous sales and go from there. This is known as historical forecasting. Or, you can work out the total market for your item, estimate the slice of that market you’ll get, and work out your sales from that. This is known as top-down forecasting.
  3. Adjust as needed. Think about what might change. Markets can shift, rules can change, and new marketing tactics can boost sales. Make sure to adapt your forecasts accordingly.
  4. Subtract costs. Finally, take your forecast sales and subtract what it costs to make your goods or services. The result is your potential profit.
Example of a simple sales forecast

Projected expenses budget

In a projected expenses budget, you list your expected operating expenses—such as rent, utilities, marketing costs, salaries, and production costs—over a period of 3-5 years.

Example of a projected cash flow statement

📚 This Might Interest You: 

We explain everything you need to know about calculating labor costs.

Projected cash flow statement

A projected cash flow statement typically shows your projections for a period of 3-5 years. It presents the flow of cash in (revenue) and out (expenses) of your business. 

This helps you understand and demonstrate if you can cover all expenses and what months might require additional financing.

The statement usually includes the following sections:

  • Operating activities: This section outlines the cash received from customers and cash paid to suppliers, along with various operating expenses such as employee salaries, rent, utilities, and marketing expenses.
  • Investing activities: This section covers the purchase or sale of assets, such as equipment or investments, and reflects the cash flows associated with these activities.
  • Financing activities: These activities include the cash flows related to financing the business, such as proceeds from loans or equity issuances, loan repayments, and dividend payments.
  • Net increase in cash: This figure represents how much the business’s cash is expected to increase or decrease based on the above.
  • Opening and closing cash balances: The opening cash balance represents the cash on hand at the beginning of the period, while the closing cash balance shows the projected cash at the end of the period.
Example of a projected cash flow statement

Projected profit and loss (P&L) statement

A projected P&L statement shows the expected revenue, costs, and expenses expected over a period of time, typically 3-5 years. 

It provides information about your company’s ability or inability to generate profit by increasing revenue, reducing costs, or both.

Example of a projected profit and loss statement

Projected balance sheet

This statement provides a snapshot of your company’s projected net worth at particular points in time, typically every year for 3-5 years. It lists all of your business’s assets, liabilities, and equity.

Example of a projected balance sheet

💡 Pro Tip: 

Your financial projections aren’t set in stone. You should update them regularly as you get more information about your business’s performance and the market you’re operating in.

Step 8: Review and edit your business plan

After drafting your business plan, you need to review and edit it. This ensures your plan is clear, accurate, and persuasive. 

Follow these steps to review and edit your plan:

  1. Review for errors: Check for factual, calculation, or logical errors. Ensure all claims are supported by data or evidence.
  2. Check for consistency: Ensure all sections are consistent in tone, format, language, and information.
  3. Check for clarity: Make sure your plan is easy to understand. Use simple language and clear visuals. Charts, graphs, infographics, tables, location photos, flowcharts, and product mock-ups can all help to make your vision clear to the reader.
  4. Check for completeness: Ensure you’ve included all relevant information and addressed all critical areas.
  5. Proofread: Check for grammar, spelling, punctuation, and formatting errors. A well-presented plan appears professional and credible.
  6. Seek feedback: Get advice from mentors, peers, or experts. Their perspective can help identify any gaps or weaknesses in your plan. 
  7. Update regularly: Come back to your plan often, altering it to reflect any changes in your company or market.

Step 9: Add appendices if needed

Appendices include any additional documents that support your business plan. While not always necessary, they can provide valuable supplemental information. 

Make sure your appendices are:

  • Relevant: They should include only information that supports your business plan. This could be market research data, legal documents, or product samples.
  • Complementary: Appendices should provide only additional supporting information. They shouldn’t distract from the main points of your plan.
  • Organized: The appendices should be ordered in the sequence they’re mentioned in the business plan. Use a table of contents for easy navigation.
  • Clear: All information should be easy to read. Avoid long blocks of text, use bullet points or numbered lists where appropriate, and ensure any images or graphics you use are high-quality.

Tips and Resources for Creating a Business Plan

Here are some quick tips for making a business plan that impresses.

  • Use simple language: Make your business plan easy to understand. Avoid jargon and use plain, straightforward language.
  • Incorporate visuals: Bullet points, charts, graphs, and images can make your plan more engaging and easier to understand.
  • Use facts and data: Support your claims with evidence. This adds credibility to your plan.
  • Use examples: Include case studies or success stories. This can demonstrate your understanding and ability to apply business principles.
  • Include testimonials: If possible, include quotes from customers or experts to validate your value proposition.
  • Turn to Connecteam: We’ve put together a free example business plan template to help get you started!

💡Pro Tip:

You’ll find a wealth of information on the Connecteam blog to help guide your journey as a business owner. From tips on how to create an employee handbook for your team to a guide showing you how to establish democracy in the workplace, our blog has all the info you need.

Conclusion

A well-crafted business plan serves as the blueprint for your venture, underlining the vision, goals, market strategy, and financial projections you’ll follow. It includes a strong executive summary, a description of your industry and company, a market analysis, a marketing and sales plan, and financial data you can use to build and grow.

By following the steps above, you can create a plan that’s comprehensive and practical—helping you attract investors and establish a clear path forward for your company.

FAQs

What are the common parts of a good business plan?

A good business plan should include an executive summary, company description, product or service description, market analysis, marketing and sales strategy, financial analysis, and financial projections. Each section provides critical insights into your business, from your vision to how you plan to achieve your goals.

What is the most important part of a business plan?

The executive summary is arguably the most crucial segment of your business strategy. It’s the first thing potential investors or partners will read and should provide a captivating snapshot of your entire business plan. It’s vital to make it concise, engaging, and informative.

How should a business plan be formatted?

A business plan should be formatted in a clear and organized way. Use concise language, include relevant visuals, and maintain consistency in style throughout. It’s crucial to organize information logically, with headings and subheadings for easy navigation. Always back up claims with accurate data and references.

The post How To Write a Business Plan in 9 Steps appeared first on Connecteam.

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What Is Third Shift: Pros, Cons, and Implementation Tips https://connecteam.com/e-third-shift/ https://connecteam.com/e-third-shift/#respond Sun, 16 Jun 2024 12:17:48 +0000 https://connecteam.com/?p=134345 The third shift is sometimes called graveyard work because it refers to work hours that occur overnight into the early morning. This guide dives into the pros and cons of the third shift and discusses which industries commonly use this shift. For some businesses, maintaining productivity around the clock is essential. The third shift, sometimes...

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The third shift is sometimes called graveyard work because it refers to work hours that occur overnight into the early morning. This guide dives into the pros and cons of the third shift and discusses which industries commonly use this shift.

For some businesses, maintaining productivity around the clock is essential. The third shift, sometimes called night shift or graveyard shift, steps in to meet this need. But implementing this shift can be difficult because of employee reluctance, oversight issues, and more.  

In this article, we consider the pros and cons of third shift work and provide practical tips for businesses looking to implement third shifts for the first time.

Key Takeaways

  • Third shift employees work night-time hours into the early morning.
  • Industries with 24/7 operations—including those that serve public health and safety needs—are the most likely to have third shift employees.
  • The third shift can help businesses increase productivity, but it presents oversight and employee health challenges.

What Is the Third Shift? Hours and more

Sometimes ominously referred to as the graveyard shift, the third shift refers to nighttime shifts that occur after first and second shifts. 

Companies that choose to incorporate a third shift job are often hoping to maximize productivity by operating 24/7 or catering to international customer needs across time zones. The third shift is also sometimes used on a limited basis by companies that need overnight security or other services.

Third shifts can vary in length but are commonly 8-10 hours.

What time is the third shift? 

A typical third shift schedule starts around 11:00 pm-1:00 am and ends around 7:00 am-9:00 am. However, exact third shift hours can vary based on the company and industry.

🧠 Did You Know? 

Any shift that follows a second shift might be called a “third shift,” even if that shift doesn’t occur overnight. For example, a restaurant shift that ends at midnight before the business closes might be labeled a third shift. However, the term “closing shift” is most commonly used in industries where such shifts conclude daily business operations. The term “third shift” typically refers to overnight shifts in 24-hour schedules.

Third Shift Examples

Example of a 24-hour schedule with non-overlapping 8-hour shifts, including first, second, and third shifts.
Example of a 24-hour schedule with overlapping 10-hour shifts, including first, second, and third shifts.
Example of a schedule for a business that’s open 7:00am-11:00pm with overlapping 8-hour shifts, including opening, second, and closing shifts.

Industries Using Third Shifts

Several industries make use of third shift scheduling, including:

  • Healthcare. Hospitals, emergency medical care, and long-term nursing care facilities routinely need overnight staff.
  • Manufacturing. Factories sometimes run their operations 24/7 to meet demand.
  • Logistics. Warehouses, shipping companies, and delivery services use third shifts to minimize the time needed to deliver products. 
  • Safety. This includes public services like police and fire departments, as well as private security services.
  • Customer support. Businesses that may not open outside traditional business hours sometimes still employ third shift workers to support customers around the globe.

Third Shift Benefits

Benefits for employers

Employers draw many benefits from third shift work, including:

  • Global reach. Businesses serving global markets can significantly enhance their customer service offerings by operating a third shift. Round-the-clock availability can lead to improved customer satisfaction.
  • Improved crisis response. With employees working all hours of the day and night, employers are better able to respond to emergencies quickly. Whether there’s a technical problem or a security breach, someone is there to handle it.
  • Better use of resources. By running operations continuously, employers can use equipment and facilities more efficiently. This can reduce downtime and prevent bottlenecks that take days to resolve.

🧠 Did You Know?

Connecteam’s team instant messaging features help employees stay connected, even when they’re working outside traditional hours.

Benefits for employees

Working the night shift isn’t for everyone, but some employees prefer it. Some of their reasons include:

  • Quieter work environment. Working nights can come with quieter spaces and less interpersonal interactions for those who prefer solitude. 
  • Higher income potential. Many employers offer incentive pay to employees on the third shift. Some union agreements even require this.
  • Traffic avoidance. Heading to work in the late evening often avoids most commuting traffic jams. Employees on the third shift often enjoy shorter commuting times overall.

One third shift employee wrote, “I love it. Not a lot of customers , alot of free time during the day once i wake up.”  

Third Shift Challenges

While beneficial to many, the third shift can sometimes be difficult to navigate.

Challenges for employers

Employers often encounter difficulties staffing their third shifts effectively and ensuring adequate supervision during these hours.

  • Recruitment and retention. Attracting workers for night shifts can be difficult, and third shift employees tend to have a higher turnover rate than day shift workers. 
  • Management oversight. Third shift supervisor work can also be less desirable for employees, adding to the challenge to have adequate staffing for all hours. Ensuring supervision meets business needs takes careful planning.
  • Work quality. Maintaining work quality through the night isn’t always possible. For example, a recent study published in Nursing Open found that nurses working at night were more likely to encounter patient safety issues and suffer physiological consequences than those working during the day. Employees working while their body expects to sleep are more prone to make mistakes and miss key information.
  • Hours tracking. The third shift often uses less staff than day shifts do. With less oversight in place, it becomes even more important for businesses to monitor and record non-exempt employees’ work hours correctly for accurate payroll.
  • Union agreements. Many industries that rely on third shifts also employ union-represented workers. Union agreements place contractual obligations on the employer that must be met for all workers, including provisions that apply specifically to third shifts.
  • Laws and regulations. Employers must be aware of any laws or regulations that impact third shift scheduling. These include meal and rest break laws, predictive scheduling laws, overtime laws, and more. 

While these challenges are significant, there are steps that can mitigate their impact. Incentive pay like shift differentials can help draw more employees to third shift work. Staying proactive in your planning helps keep oversight to avoid quality dips. Putting reliable systems in place will keep you on track to accurate payroll and contract compliance. Finally, seeking legal counsel can help you stay on top of any laws that apply to your business.

🧠 Did You Know? 

Connecteam makes creating work schedules and tracking hours simple, no matter what time your employees are working.

Challenges for employees

  • Health problems. Modifying sleep patterns continually can impact employees’ circadian rhythms and has been linked by the National Institute of Health to health risks including obesity, diabetes, mood disorders, and cancer. 
  • Safety. Some criminal acts, like robbery, are more likely to occur at night. For instance, convenience stores open 24/7 are more likely to be robbed during late evening and early morning hours. While employers can take steps to ensure their workers are safe, there may be increased risks to employee safety during the third shift.
  • Work-life balance. Maintaining personal relationships and managing household needs while working the third shift can be difficult. For example, one employee shared on Reddit that she has difficulty running errands after working third shift.

How To Implement a Third Shift schedule

Follow these steps to get your business ready to implement a third shift. 

Identify night work

Will you be running all business functions over 24 hours, or only some of them? What third shift hours will your business use? By identifying the exact work your business needs performed overnight, and the hours during which those operations will take place, you’ll be prepared to staff your third shift effectively. 

Solicit employee interest 

You may already have employees on your team that would enjoy third shift work. Clearly communicate which work will be performed overnight and any training or incentives employees can gain from volunteering for the new shift. Leave time to address employee feedback and concerns before pushing the new shift into operation.

🧠 Did You Know? 

You can use the Connecteam survey app to gauge employee interest in third shift work.

Consider incentive pay

Offering higher pay for third shift work is a common practice. If finding adequate staff numbers to work your third shift is difficult, building in pay incentives can help bridge the gap. Offering other benefits—such as higher paid time off accrual or company perks—can also be useful incentives.

Train new hires

Unless you’re cutting back hours in other shifts, you’re likely going to be hiring new employees for the third shift. Ensure all new staff undergo thorough employee training and become familiar with their job duties and your overnight safety protocols. Integrating tenured employees with the new hires will help quality expectations stay consistent.

Create schedules

Decide whether your third shift employees will work only night hours or if you’ll rotate them between day and night shifts using rotating shifts

Once you have a broad plan for how shifts will interact, start creating schedules. Ensure that you include overlap time if employees need to hand off duties from one shift to the next.

🧠 Did You Know?

You can create and adjust schedules easily with Connecteam’s shift scheduling. And our guide on how to create a rotating schedule can help.

💡 Pro Tip:

Want to give employees more flexibility with their schedules? Consider using a shift bidding or self-scheduling system.

Monitor and adjust

Plan ahead to review how the third shift is running once it’s been in place for a while. Check for signs of employee errors or safety concerns that may require intervention. Address any issues and make adjustments as needed. Don’t forget to consider your employees’ well-being, and check that they have the resources they need to perform to your expectations.

💡 Pro Tip:

Overtime for non-exempt employees can balloon on the third shift if you don’t have systems in place to monitor employee hours on a daily basis. Connecteam’s overtime management system is built right into the app. With it, you can track overtime automatically and receive notifications if a third shift employee starts accruing unapproved overtime.

Flexible Hour Patterns and Alternative Shift Patterns

Now that we’ve looked at what third shift entails, let’s review the other hours and shift patterns you may want to consider for your business.

Part-time 

A part-time employee can work during any shift—but works less than full-time hours. Hiring third shift employees on a part-time basis is less common, but these workers can help fill in other parts of your schedule when extra support is needed. If your business experiences periodic spikes in demand, then part-time workers are useful to meet those needs.

Weekend only

If your business operates 7 days a week, then you might consider hiring some employees to work weekends only. Like third shifts, weekend shifts are often less desirable shifts for workers. Hiring employees looking for part-time work or a second job can fill weekend shifts that are otherwise difficult to fill. Hiring weekend-only workers also avoids scheduling conflicts in states like Illinois that require employees to have at least 1 day off per 7 days worked. 

First shift

This shift runs during traditional business hours and is considered the “day shift.” Hours for the first shift traditionally run between 7:00 am and 6:00 pm. 

Second shift

The second shift follows the first shift and often fills the time between day and night work hours. The start and end times for second shifts are more variable depending on whether businesses are operating a long work day or a 24-hour operation. Start times for second shifts are generally between 3:00 pm and 5:00 pm. Second shifts usually end between 11:00 pm and 1:00 am.

Split shifts

Sometimes employees work across multiple shifts in a day. A split shift divides a shift into 2 segments with a long period off in between. For example, an employee might work half of their day during the first shift, and then return for the late half of the second shift or the start of the third shift. 

It’s important to be mindful of labor laws that require premium pay for split shifts. Split shifts can also run into legally required premium pay for “clopening”—working a closing shift followed by an opening shift. 

📚 This Might Interest You:

Check out our state labor law guides to find which premium pay requirements exist in your state.

Fixed shifts

A fixed shift refers to a scheduling pattern. Employees with a fixed shift always work the same shift assignment. For example, if you hire third shift employees to a fixed shift, then you’d schedule them to work third shift hours only.

💡 Pro Tip:

Seek out guidelines from health experts and organizations when determining whether to use fixed or rotating shifts. For instance, check out the National Institute for Occupational Safety and Health’s recommendations on helping shift workers.

Rotating shifts

A rotating shift is the opposite of a fixed shift. Instead of working the same shift hours every week, employees work different shifts throughout a set period, such as weekly or monthly. The shift assignments vary based on business needs. Rotating shifts can be more challenging to schedule because they’re changeable, but this flexibility helps your business adapt to changing needs and employee availability. 

Be mindful of the potential for negative health effects when employees regularly bounce between day and night work hours. While some variation can be helpful to employees, too much can lead to burnout or absenteeism.  

📚 This Might Interest You:

Read our guide on 24-hour shift schedules to learn more about the fixed and rotating schedules you can use when incorporating a third shift into your operations.

The Bottom Line on Third Shifts

Adopting a third shift can enhance your operational capabilities. Whether you’re serving customers globally or securing your business locally, third shift employees can be a vital part of your staffing strategy. 

While the third shift offers many benefits, incentivizing employees to accept third shift hours can be challenging. Scheduling third shifts can also be difficult. 

With thoughtful implementation and ongoing system support, your business can reap the benefits of a third shift. You can rely on Connecteam to streamline your schedule planning, keep employees up to date, and so much more. 

Try out Connecteam for free today.

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What Is Second Shift: Pros, Cons, and Implementation Tips https://connecteam.com/e-second-shift/ https://connecteam.com/e-second-shift/#respond Sun, 16 Jun 2024 10:32:23 +0000 https://connecteam.com/?p=134300 A second shift is typically an afternoon or evening shift. This guide uncovers the pros and cons of adding a second shift into your work schedules and uncovers the steps needed for successful implementation. Shift work plays a critical role in expanding operations beyond traditional business hours. A second shift offers a great deal of...

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A second shift is typically an afternoon or evening shift. This guide uncovers the pros and cons of adding a second shift into your work schedules and uncovers the steps needed for successful implementation.

Shift work plays a critical role in expanding operations beyond traditional business hours. A second shift offers a great deal of flexibility, but it also comes with downsides.  

Below, we clarify how the second shift works for businesses and employees. We also discuss practical tips for implementing second shift schedules and share examples of schedules that include second shifts. 

Key Takeaways

  • A second shift follows a first shift, typically starting between 3:00 pm and 5:00 pm—and ending between 11:00 pm and 1:00 am.
  • Adopting a second shift helps businesses boost productivity and promotes knowledge transfer between overlapping shift workers.
  • The second shift can present scheduling challenges and requires a good understanding of local labor laws.

What Is a Second Shift? Hours and more

In shift work schedules, the second shift follows the morning shift or first shift. Employees typically start their second shift hours in the late afternoon and end in the late evening, which is why this shift is often considered an evening or afternoon shift. However, some second shifts can begin earlier. 

Businesses with extended or 24/7 operations use second shifts. 

The second shift is often called the “swing shift” because it swings between day and night hours. However, second and swing shifts aren’t quite the same thing, as “second shift” is a more general term that refers to any shift following the first shift—it isn’t necessarily followed by a night shift. 

Still, second shifts are traditionally used as swing shifts to cover the time between first and third shifts. In this case, the shift falls between traditional business hours and night work hours. If you break a day into 3 segments of 8 hours, for example, the second shift is the middle segment. 

Oftentimes, second shifts ensure 24/7 coverage in 24-hour schedules that use shifts less than 12 hours. But the term is also sometimes used to refer to the second 12-hour shift in a 24-hour work schedule containing just day and night shifts. Here, the second shift is the night shift.

📚 This Might Interest You:

Discover our guide to 24-hour shift schedules.

Some businesses that don’t operate 24/7 also use a second shift between opening and closing shifts to add staff during peak business hours. This is common in the restaurant, retail, and entertainment industries. For example, a retail business that sees higher foot traffic in the afternoon might add a second shift to bring in more help during this period. 

Second shifts can vary in length but are usually 8-10 hours.

What time is the second shift? 

An 8-hour second shift usually begins between 3:00 pm and 5:00 pm and ends between 11:00 pm and 1:00 am. Exact hours vary by industry and organization. For example, restaurants may have second shift workers start at 11:00 am to cover lunch rush.

Some second shift hours may overlap with other shifts. This is helpful in industries where knowledge exchange is vital between shift workers. For example, a hospital that uses 10-hour shifts might have a second shift nurse begin at 3:00 pm so their hours can overlap with the last 2 hours of the day shift nurse. In this case, the nurses can provide better patient care since they have time to ask questions or provide updates to each other.

Second Shift Examples

Example of a 24-hour schedule with non-overlapping 8-hour shifts, including first, second, and third shifts.
Example of a schedule for a business that’s open 7:00 am-11:00 pm with non-overlapping 8-hour shifts, including first and second shifts.
Example of a schedule for a business that’s open 7:00 am-11:00 pm with overlapping 8-hour shifts, including opening, second, and closing shifts.
Example of a 24-hour schedule with overlapping 10-hour shifts, including first, second, and third shifts.
Example of a 24-hour schedule with non-overlapping 12-hour shifts, including first and second shifts.

Industries Using a Second Shift

A second shift extends hours to meet customer demand in industries that operate longer than traditional office hours, including restaurants, retail, and entertainment venues. Such businesses don’t usually have overnight third shift hours. Second shifts that conclude daily business operations in these industries might more commonly be called “closing shifts.” 

A second shift is also widely used in 24/7 work environments, such as hospitals and public safety services. For healthcare and public safety, a second shift can help with providing emergency support outside traditional hours—sometimes without requiring longer individual shifts.

This schedule is also common in other industries that benefit from the increased production and efficiency second shifts offer—like manufacturing

🧠 Did You Know?

McLaren Automotive implemented a second shift in their vehicle production center, bringing in 250 new employees. As a result, they doubled their daily production rate. 

Second Shift Benefits

Benefits For Employers

Adding second shift brings several advantages for employers, including:

  • Improved productivity. In settings like manufacturing plants, the second shift allows for continuous use of facilities and equipment over a greater period of time each day. 
  • Extended service hours. Retail and hospitality employers reap the benefit of providing services to customers who want to visit their business in the late afternoon or evening.
  • Scheduling flexibility. With more shift hours to choose from, finding overlap between employee availability and work hours can be easier.
  • Smoother shift handover. Businesses that use the second shift to overlap with the first and third shifts enable employees working different shifts to share information and improve work performance.

🧠 Did You Know? 

Connecteam’s team instant messaging features help employees share vital information on the go, making for more straightforward shift handovers.

Benefits for Employees

Benefits of working a second shift for employees include: 

  • Work-life flexibility. Balancing parenting demands, education, and personal passions can be easier for some employees when they don’t have to conform to traditional office hours. For instance, dispatcher Marty Piraino found that when he worked second shifts, he was able to schedule personal appointments and run errands in the morning. 
  • Sleep pattern improvement. A study published in the International Journal of Exercise Science found that a person’s sleep chronotype (i.e., when they wake up and sleep) influences their sleep quality. For those who naturally wake up later, working a second shift can be beneficial, as a second shift schedule better accommodates their preferred waking hours.
  • Faster and cheaper commutes. Working non-standard hours can mean avoiding the morning and evening rush hour traffic jam. Public transit is also less expensive in some cities during non-peak hours. 
  • Higher wages and second jobs. Many employers offer incentive pay or higher wages to encourage employees toward the second shift. Some employees also capitalize on having early mornings available to work a second supplemental job.

One second shift employee wrote, “I’ve worked all 3 shifts. Seconds were great because I felt I had so much more freedom with my day… I always felt so guilty about not accomplishing anything after day shift because I was worn out. But with seconds, I was actually much more productive and happier.”

Second Shift Challenges

While beneficial in many ways, the second shift also presents challenges.

General challenges for employers

Employers need to be mindful that they’re staffing the right people in the second shift and ensure they create work schedules that provide adequate coverage.

  • Employee retention. Exclusively working second shift works for some employees, but others may experience burnout or seek alternative first shift employment.
  • Scheduling complexity. The second shift can also make scheduling more complicated—especially if your employees work more than one type of shift. Staffing your shifts correctly may require extra care.
  • Management oversight. As the second shift expands the hours of business operation, it sometimes leads to hours when supervisors are less available. Staffing hours beyond traditional office hours with management-level employees can be challenging.

🧠 Did You Know? 

Connecteam takes the guesswork out of shift scheduling. Previously scheduled shifts can be used as templates for creating new shift schedules. It’s also easy to set rules to avoid accidental overtime, insufficient break times, and more.

Various laws may impact how you implement a second shift schedule. 

Some states have adopted labor laws that require employers to provide consistent schedules for employees. New York fast food businesses must provide workers with schedules that stay the same each week, for instance. Schedule changes in these businesses may also require premium pay. Laws like these may prevent employers from having employees rotate between second shifts and other shifts. 

These laws are in addition to labor laws that apply in all states, such as overtime laws and meal and rest break laws.

You must also consider your employment contracts and any union agreements that cover your employees. For example, if your employment contract promises employees premium wages for less desirable shifts, you must fulfill that promise to avoid legal issues. 

Consulting with a legal expert is the best way to determine which laws apply to your business.

📚 This Might Interest You:

Our state labor law guides are a useful reference to uncover scheduling laws in your state.

Challenges for employees

Some employees enjoy working a second shift, while others hate it. Those who prefer to avoid the second shift typically share these reasons.

  • Disrupted social life. Consistently working while friends and family enjoy leisure time can take a toll on employee well-being. 
  • Fatigue. Some employees are drained by consistently working late into the evening. 

One second shift worker wrote, “Basically from the time you get up until you go to work, you can’t really relax, and after you get home its so late anyway that you’ll probably want to sleep. [My second shift] was a horrible experience.”

How To Implement a Second Shift

Here are the key steps to successfully implementing a second shift.

Assess business needs

Determine why a second shift is necessary. Are you extending business hours? Creating an overlap shift to bridge your morning and night shifts? Identify the specific operational or service gaps that the second shift will address. Doing so first will help you develop schedules that meet your needs.

This will also help you determine what second shift hours look like for your business, including what time your second shift should start. For example, if you run a bar that experiences a happy hour rush, you’re more likely to schedule a second shift to start before 5:00 pm to meet that need. 

Communicate with employees

Engage with your team about the upcoming changes. Explain the reasons for the second shift and how you plan to staff it. Be sure to address how it will benefit both the business and employees. Seek feedback and address any concerns they may have.

Plan schedules

Develop clear and consistent shift schedules. If necessary, ensure there’s adequate overlap between shifts to allow for smooth handovers. Use a scheduling app like Connecteam to manage shifts efficiently and reduce conflicts.

Recruit and train

You may need to hire additional staff to cover the second shift. Provide comprehensive employee training to ensure all employees are familiar with their responsibilities and safety protocols. Try to include some existing staff on the new shift to ensure institutional knowledge is shared effectively.

Offer incentives

To attract employees to the second shift, consider offering incentives. Shift differentials (higher pay for working less desirable hours) are commonly used to encourage employees to volunteer for second shift. You can also consider offering additional time off or other benefits.

Evaluate performance

Regularly check in with second shift employees to gauge their well-being. Evaluate key performance indicators like absenteeism, productivity, and customer satisfaction to ensure the shift is meeting business goals. 

💡 Pro Tip:

Since the second shift falls outside traditional office hours, unnecessary overtime can creep in if no one is keeping watch. Use the Connecteam overtime app to accurately track overtime and get notified if a second shift employee dips into unapproved overtime.

Flexible Shift Hours and Alternative Shift Patterns

Here’s what you need to know about other shift hours and shift patterns that go along with second shifts.

Part-time hours

Hiring employees for part-time employment can help fill out second shift needs. For instance, you might schedule a part-time employee for just the evening dinner rush hours in your restaurant. Alternatively, part-time employees may work 8-hour shifts but work only on your busiest days each week.

Weekend hours

As with part-time employees, some businesses hire employees to work exclusively on weekends. This can help retail businesses cope with higher customer demand on weekends. Some businesses schedule all employees on both weekdays and weekends. It’s important to be mindful of state laws, like Illinois’ labor laws, that require employers to grant at least 1 day off per 7 days worked. 

First shift

First shift employees work hours that overlap with traditional office hours—usually between 7:00 am and 6:00 pm. The first shift can include part-time or weekend hours work.

Third shift

This is the overnight shift, sometimes ominously called the graveyard shift. Third shift hours typically run between 11:00 pm and 8:00 am. These hours are common in 24/7 businesses and public services. As with the first shift, the third shift sometimes includes part-time or weekend work.

Split shift

A split shift can fall across first, second, or third shift hours. The defining feature of a split shift is that it divides total hours into 2 blocks of work hours with a long period off in the middle. For example, an employee on a split shift might work 8:00 am-12:00 pm and 6:00 pm-10:00 pm on the same day.

Some states, like California, require premium pay for some employees scheduled on to split shifts.

Fixed shift

A fixed shift occurs when an employee has the same shift assignment week after week. If you allow an employee to work second shifts only, they’d have a fixed second shift. 

Rotating shift

Many businesses need scheduling flexibility to balance employee availability and business needs. A rotating shift means that employees are scheduled to change shifts each week. For example, an employee may be assigned to a mix of first and second shift hours in the same week. 

For rotating shifts, keep in mind that some states require you to pay premiums when employees work “clopening” schedules: closing the business one night and opening it the next day.

The Bottom Line on the Second Shift

The second shift helps extend operational hours and improve product and service delivery for many businesses. It can boost productivity and promote better resource use. However, it requires an understanding of local labor laws and can be disruptive for employees. 

Successful implementation of the second shift requires thoughtful scheduling, clear communication, and supportive management practices

Crafting schedules that work for your business and employees is easier with Connecteam. Manage scheduling needs and keep your employees in the loop in one app.

Get started with Connecteam for free today.

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EU Time Tracking Law: What Employers Need to Know Before July 1 https://connecteam.com/e-eu-time-tracking-law/ https://connecteam.com/e-eu-time-tracking-law/#respond Thu, 13 Jun 2024 14:29:44 +0000 https://connecteam.com/?p=134168 The EU time tracking law, set to be enforced from 1 July 2024, will require all businesses to implement a time tracking system or software for employees to accurately record their working hours. This new requirement stems from a 2019 ruling by the EU Court of Justice in the Deutsche Bank case, which mandated companies...

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The EU time tracking law, set to be enforced from 1 July 2024, will require all businesses to implement a time tracking system or software for employees to accurately record their working hours.

This new requirement stems from a 2019 ruling by the EU Court of Justice in the Deutsche Bank case, which mandated companies to precisely track employee work hours.

To ensure compliance with the upcoming EU time tracking law 2024, make sure you familiarise yourself with the European Union Working Time Directive and its implications.

This includes updating GDPR processes and implementing a reliable time-tracking software solution well before the July 1 deadline.

Take proactive steps to adhere to the new working time regulations and avoid potential fines and penalties associated with non-compliance.

Key Takeaways

  • The EU time tracking law will be enforced from 1 July 2024, requiring all businesses to implement a time tracking system.
  • The law mandates accurate recording of all working hours, including breaks and overtime.
  • You must maintain employee work-hour records for a specific period (local regulations apply) and ensure employee access to their data.
  • Employers must implement security measures to protect employees’ personal data.
  • Non-compliance with the law may result in fines and penalties for businesses.

Introduction to the EU Time Tracking Law

The EU’s Working Time Directive plays a crucial role in regulating working hours across EU member states, safeguarding the health and well-being of employees.

As an employer in the EU, it is your responsibility to ensure compliance with the minimum standards set by the EU employment law regarding work hours.

The primary objective of the European employment law is to protect employees’ health and safety, as excessive working hours are known to contribute significantly to stress, depression, and various illnesses.

In accordance with the EU time tracking law, employers are now obligated to implement mandatory time tracking systems to accurately record employees’ working hours.

The EU time tracking law encompasses several key aspects that employers must be aware of:

  • The European Working Time Directive (EWTD) was originally passed in 1993 and updated in 2003, setting the foundation for the current EU time-tracking law.
  • The EWTD mandates minimum daily and weekly rest periods, establishes guidelines for breaks, night work, annual leave, and sets a maximum limit on the number of weekly working hours.
  • According to the EWTD, the average working time for each seven-day period, including overtime, should not exceed 48 hours.
  • Employees are entitled to at least 11 hours of uninterrupted rest daily and 24 hours of uninterrupted rest every seven-day period.
  • The European Court of Justice (ECJ) ruled that all EU businesses must set up an objective, reliable, and accessible time-recording system to ensure compliance with the EU time-tracking law.

Note that the specific implementation of the EU time tracking law may vary across member states. For instance:

CountryKey Points
GermanyMaximum of 8 hours per day, with overtime requiring documentation. Limit of 10 hours in a single shift. Fines up to 15,000 euros for non-compliance
SpainHourly records must be kept for 4 years. Fines up to 6,250 euros for non-compliance
NetherlandsMaximum of 60 hours per week. Fines up to 10,000 euros per employee for non-compliance
SwedenMaximum of 40 hours in a regular workweek. Records of overtime and on-call time must be kept
IrelandTime records must be retained for a minimum of 3 years. Fines up to 2,500 euros for inaccurate record-keeping

Key Points of the New Time Registration Law

The EU’s new time registration law, set to take effect on July 1, 2024, introduces several crucial changes that employers must be aware of to ensure compliance.

Comprehensive Coverage of Work Hours

One of the primary aspects of the time registration law is its requirement for businesses to implement a comprehensive system that accurately records all work hours, including regular shifts, overtime, and breaks.

This measure ensures that employees are fairly compensated for their time and helps prevent exploitative practices.

Documentation of Work Hours

Companies are obligated to maintain detailed records of their employees’ work hours for a specified period, typically five years.

These records must be easily accessible to employees throughout their employment, allowing them to verify the accuracy of their documented hours and address any discrepancies promptly.

Employee Access to Personal Time Data

To promote transparency and trust between employers and employees, the time registration law stipulates that workers should have unrestricted access to their personal time data.

This provision aims to empower employees to take an active role in monitoring their work hours and ensures that they are being fairly compensated for their efforts.

Safeguarding Personal Information

Given the sensitive nature of time registration data, the law requires businesses to implement stringent security measures to protect employees’ personal information.

This includes adhering to data protection regulations, such as the General Data Protection Regulation (GDPR), and ensuring that only authorised personnel have access to the time tracking system.

Consequences of Non-Compliance

Businesses that fail to comply with the time registration law may face severe consequences, including substantial fines and other penalties, depending on which country your company operates in.

The EU’s Working Time Directive (2003)

The EU’s Working Time Directive, introduced in 2003, is a crucial piece of legislation aimed at safeguarding employees’ health and well-being across EU member states.

This directive establishes a set of minimum standards for working hours, rest breaks, and annual leave, ensuring that workers are not subjected to excessive or unhealthy working conditions.

One of the key provisions of the EU working time directive is the 48-hour limit on the average working week. This means that, over a reference period of four months, an employee’s average weekly working time should not exceed 48 hours, including overtime.

In addition to the weekly working time limit, the directive also stipulates minimum rest periods. Employees are entitled to at least 11 consecutive hours of daily rest and a minimum of 24 hours of uninterrupted rest per seven-day period.

ProvisionDescription
Maximum Weekly Working HoursEmployees cannot work more than 48 hours per week on average over a 4-month reference period, including overtime
Daily Rest PeriodEmployees must have at least 11 consecutive hours of daily rest
Weekly Rest PeriodEmployees are entitled to a minimum of 24 hours of uninterrupted weekly rest
BreaksEmployees must be provided with a break after 6 hours of work
Annual LeaveEmployees have the right to at least 4 weeks of paid leave per year

The directive also addresses the issue of night work, recognising the potential health risks associated with working during night hours. Night workers should not work more than an average of 8 hours in any 24-hour period, and those with health issues related to their work have the right to transfer to day work when suitable.

Employers have a responsibility to ensure appropriate safety and health protection for night workers and shift workers, taking into account the nature of their work. You must also consider adapting work patterns to alleviate monotonous tasks and meet safety and health requirements, particularly concerning breaks during working time.

📚 This Might Interest You:

Read our in-depth guide on different 24-hour shift patterns that will help keep your staff well-rested and efficient.

Annual leave is another essential aspect of the EU working time directive, with every worker entitled to at least four weeks of paid leave per year. This provision ensures that employees have the opportunity to take time off work for rest, relaxation, and personal pursuits.

By setting these minimum standards, the EU’s Working Time Directive plays a vital role in protecting the health, safety, and well-being of workers across the European Union.

Make sure you adhere to these regulations to create a more balanced and sustainable working environment for your employees.

Challenges with the EU’s Working Time Directive

While the Working Time Directive aimed to protect employees’ health and safety by regulating working hours and rest periods, it left significant wriggle room for employers.

The lack of a mandatory requirement for businesses to track employee work time created loopholes that could be exploited, potentially undermining the directive’s effectiveness.

The directive also didn’t mandate a standardised system for recording working hours, which made it near impossible to accurately assess whether employers were adhering to the stipulated limits.

Without a reliable method to monitor employee work time, the directive’s enforcement remained inconsistent across EU member states.

EU Working Time Directive (2003) StatisticsData
Average weekly working hours in the EU (1990)39 hours
Average weekly working hours in the EU (2006)37.8 hours
Part-time workers’ share in the EU’s workforce (1992)14%
Part-time workers’ share in the EU’s workforce (2009)18.8%
Employees in the EU working more than 48 hours a week10%
Employees in the EU working multiple jobsNearly 7%

The directive’s ambiguity also led to varying interpretations and implementations across EU member states, which made it even more challenging to enforce a uniform standard of employee protection throughout the European Union.

The rise of flexible and remote working arrangements, posed additional challenges to the effective implementation of the Working Time Directive.

Without clear guidelines on how to track and monitor the working hours of employees working outside traditional office settings, employers found it increasingly difficult to ensure compliance with the regulations.

The EU Timekeeping Requirement (2019)

In a landmark ruling in May 2019, the European Court of Justice introduced a new timekeeping requirement, mandating that all employers across the EU must accurately track their employees’ working hours.

This decision came as a result of a lawsuit filed by the Spanish trade union, Federación de Servicios de Comisiones Obreras (CCOO), against the Spanish subsidiary of Deutsche Bank.

The ECJ’s ruling stipulates that employers must keep track of all work time, including regular hours and overtime, to ensure compliance with the EU’s Working Time Directive and protect employees’ health and well-being.

The European Court of Justice Ruling

The ECJ’s ruling in the CCOO vs. Deutsche Bank case has far-reaching implications for employers throughout the European Union.

The court ruled that member states must require employers to establish an objective, reliable, and accessible system for measuring their employees’ daily working hours.

This ruling aims to prevent employers from exploiting their workforce by ensuring that employees are fairly compensated for their time and are not subjected to excessive working hours that could jeopardise their health and safety.

🧠 Did You Know?

Connecteam’s time clock records employee work hours down to the second and can automatically flag when employees reach set maxim work hours, helping you stay compliant with EU labor law.

Find out more about Connecteam’s time clock now.

Establishing an Objective, Reliable, and Accessible System

As mentioned above, to comply with the EU timekeeping requirement, employers must implement a time-tracking system that is objective, reliable, and accessible.

Your company has the flexibility to design a system that best suits their organisation’s needs, but it must meet the following criteria:

  • Accurate recording of all employee work hours, including regular hours and overtime
  • Secure storage of time records for a minimum of five years
  • Accessibility of time records to employees and relevant authorities
  • Protection of employees’ personal data in accordance with GDPR regulations
A image of a worker next to a mobile phone with the Connecteam app showing the worker's time clock

A well-designed system can offer benefits such as improved productivity, better resource allocation, and enhanced employee well-being by monitoring workloads and promoting a healthier work-life balance.

Key Aspects of the EU Timekeeping RequirementDescription
Accurate RecordingEmployers must record the start and end times of each employee’s workday, including breaks and overtime.
Data StorageTime records must be securely stored for a minimum of five years.
AccessibilityEmployees and relevant authorities must have access to time records.
Data ProtectionEmployers must ensure that employees’ personal data is protected in accordance with GDPR regulations.

As the ECJ has left it up to individual member states to determine the specifics of incorporating the time recording requirement into their labour laws, make sure you stay informed about the implementation process in your respective country.

Implementation of the EU Time Tracking Requirement in Member States

Following the ECJ’s 2019 ruling, EU member states have been working to ensure compliance with the updated Working Time Directive.

The implementation has varied across member states, with some already having timekeeping requirements in place prior to the ruling, while others are introducing amendments to their labor laws to adhere to the new regulations.

Member States with Existing Timekeeping Requirements

Several EU member states had already incorporated explicit timekeeping requirements into their labour laws before the ECJ ruling. These countries include:

  • Austria
  • Croatia
  • Poland
  • Estonia
  • Finland
  • Luxembourg
  • Hungary
  • Romania
  • Slovakia
  • Slovenia
  • Latvia
  • Portugal

For these member states, the transition to the updated EU time tracking requirement has been relatively smooth, as they already had systems in place to monitor and record employee working hours.

Member States Introducing Amendments to Comply with the Ruling

In contrast, some member states whose labour laws did not specify employee time tracking requirements prior to the ECJ ruling have been gradually introducing amendments to ensure compliance.

These countries are working to update their labor laws and implement the necessary timekeeping requirements to meet the EU’s standards.

One notable example is Greece, which adopted a new employment law in June 2021 that mandates the implementation of an electronic system for employee timekeeping via digital work cards.

Other EU countries are still in the process of determining the best approach to implement the ruling on timekeeping.

However, some member states, such as France and Italy, have not yet shown clear signs of formally implementing the ruling in their national labour laws.

These countries may face challenges in adapting their existing regulations to meet the EU’s requirements, and employers should stay informed about any potential changes or updates in these jurisdictions.

Spain’s Time Tracking Law: A Case Study

Spain was the first EU member state to implement the new timekeeping requirement into their Royal Decree Law in response to the CCOO vs. Deutsche Bank ruling.

The Spanish time-tracking law stipulates that all companies must track their employees’ work hours, whether they are salaried or hourly workers.

This includes recording the start and end time of every working day for each employee, including breaks, even for remote workers.

The law also has strict requirements around maintaining and sharing these employee work hours records:

  • Companies must keep their employees’ time records for a minimum of four years
  • Time records must be public and available to employees, unions, and the government
  • The unions must be informed monthly of employee overtime hours

It’s important to note that recording working hours is the responsibility of the employer, not the employee. Businesses that fail to comply with Spain’s time-tracking law will face serious financial penalties.

Employee TypeWorking Time LimitsRest Period Requirements
All Employees48 hours per week maximum (including overtime), averaged over 4 months11 consecutive hours of daily rest, 24 hours of uninterrupted rest per 7-day period
Employees Working 6+ Hours/DayEntitled to a rest break (duration set by member states)Break required after 6 consecutive hours of work
Night Shift Workers8 hours maximum in any 24-hour periodEntitled to free health assessments

In addition to the working time and rest period requirements, Spanish law also mandates a minimum of four weeks of paid annual leave for all employees.

Implications of the EU Timekeeping Law for Employers

As an employer in the European Union, it is crucial to understand the implications of the EU timekeeping law and take the necessary steps to ensure compliance.

The law requires employers to establish a reliable and accessible system for tracking employees’ daily working hours, including overtime and rest periods. Failure to comply with these regulations can result in legal action and significant penalties.

Implementing a Compliant Time Tracking System

To meet the requirements of the EU timekeeping law, employers must implement an objective and reliable time-tracking system that accurately records employees’ working hours.

This system should be accessible to both employees and relevant authorities, allowing for easy monitoring and verification of compliance.

When selecting a time-tracking system, consider factors such as ease of use, accuracy, and compatibility with your existing workflows and tools.

Ensuring Accurate Recording of Overtime Hours

One of the primary objectives of the EU timekeeping law is to ensure that employees are fairly compensated for any overtime hours worked.

As an employer, it is your responsibility to accurately record and compensate employees for overtime in accordance with the law.

Your time tracking system should be capable of distinguishing between regular hours and overtime, making it easier to calculate and process overtime payments.

Maximum Weekly Working Hours48 hours per week (including overtime)
Reference Period for Averaging Weekly Hours4 months
Minimum Daily Rest Period11 consecutive hours
Minimum Weekly Rest Period24 consecutive hours
Break RequirementAfter 6 hours of work
Paid Annual Leave EntitlementAt least 4 weeks per year
Night Work LimitAverage of 8 hours per 24-hour period

Providing Obligatory Rest Periods

In addition to tracking working hours, employers must also ensure that employees receive the obligatory rest periods mandated by the EU Working Time Directive.

This includes a minimum of 11 consecutive hours of daily rest, 24 hours of uninterrupted weekly rest, and a break after 6 hours of work. Your time tracking system should be able to monitor and alert you to any potential breaches of these rest period requirements.

🧠 Did You Know?

The burden of proof for compliance with the EU timekeeping law lies with the employer. In the event of a dispute or legal action, employers must be able to provide accurate records demonstrating their adherence to the law.

Benefits of Time Tracking for Employees

As the EU’s mandatory time tracking law comes into effect on 1 July 2024, it’s essential to understand the numerous benefits this legislation offers to employees.

By implementing a reliable and accurate time-tracking system, workers can enjoy fair compensation, improved work-life balance, and enhanced legal protection.

Fair Compensation for Overtime

One of the most significant advantages of time tracking for employees is the assurance of fair compensation for overtime work.

With a proper time tracking system in place, workers can easily document their extra hours, ensuring they receive the appropriate remuneration for their efforts. This not only promotes financial fairness but also encourages transparency and trust between employees and employers.

Improved Work-Life Balance

Time tracking also plays a crucial role in promoting a healthier work-life balance for employees. By accurately recording their working hours, including breaks and time off, workers can ensure they are not exceeding the maximum 48-hour workweek stipulated by the EU Working Time Directive.

This helps prevent burnout, reduces stress, and allows employees to enjoy their personal lives outside of work.

BenefitDescription
Legal ProtectionTime tracking provides employees with legal protection against abusive employers who may attempt to exploit their workforce. With accurate records of working hours, employees can easily demonstrate compliance with EU labor laws and seek recourse if their rights are violated.
Minimum Rest PeriodsThe EU Working Time Directive mandates a minimum of 11 consecutive hours of daily rest and 24 hours of weekly rest for employees. Time tracking ensures that these rest periods are properly observed, preventing employers from scheduling consecutive work shifts without adequate breaks.
Paid Annual LeaveEmployees in the EU are entitled to at least 28 days of paid annual leave. By accurately tracking working hours and leave taken, time tracking systems help ensure that workers receive their full entitlement to paid time off.

Benefits of Time Tracking for Employers

While the EU’s mandatory time-tracking law aims to protect employees’ rights and well-being, implementing a reliable time-tracking system also offers numerous benefits for employers.

By embracing this change and adopting a comprehensive time-tracking solution, your organisation can reap the rewards of enhanced accuracy, transparency, and efficiency.

Accurate Payroll and Salaries

One of the most significant advantages of time tracking for employers is the ability to streamline payroll processes.

With organised and digitised records of employee work hours, including overtime and breaks, calculating salaries becomes more precise and efficient.

This accuracy not only ensures fair compensation for your staff but also helps maintain compliance with labour laws and regulations.

Increased Transparency and Trust

Implementing a transparent time-tracking system fosters a culture of trust and accountability within your organisation.

When employees know that their work hours are being accurately recorded and fairly compensated, it builds confidence in the employer-employee relationship.

This transparency also extends to clients and stakeholders, as you can provide them with detailed reports and timesheets that demonstrate the effort and resources invested in their projects.

Enhanced Employee Health and Productivity

Time tracking isn’t just about monitoring hours worked; it’s also a powerful tool for promoting employee well-being and optimising productivity.

By ensuring that your staff adhere to the EU’s Working Time Directive, which stipulates a maximum of 48 hours per week and mandatory rest periods, you prioritise their health and work-life balance.

Well-rested and motivated employees are more likely to perform at their best, leading to increased efficiency and higher-quality output.

Moreover, time tracking data can help identify patterns of overwork or burnout, allowing you to intervene and make necessary adjustments to workloads and schedules.

Better Insights into Costs and Inefficiencies

Detailed time tracking records provide valuable insights into your organisation’s operations, enabling you to make data-driven decisions and optimise resource allocation.

By analysing the time spent on various tasks, projects, and clients, you can identify areas of inefficiency, bottlenecks, and potential cost savings.

This information empowers you to streamline processes, eliminate time sinks, and allocate resources more effectively.

Additionally, accurate historical data from time tracking allows you to generate more precise quotes and set realistic deadlines for future projects, enhancing client satisfaction and your company’s reputation.

Choosing the Right Time Tracking System

As the July 1 deadline for the EU time tracking law fast approaches, you need to start preparing now.

A reliable and user-friendly time tracker can make all the difference in ensuring your company meets the legal requirements while optimising employee productivity.

One such tool that stands out is Connecteam, a free digital time clock that helps you stay on top of the European time tracking regulations.

employee time clock

Connecteam allows you to effortlessly keep track of all work-related hours, including regular shifts, breaks, overtime, and time off. Its intuitive interface enables employees to report their hours online across multiple devices, making it convenient for both in-office and remote workers.

As an employer, you can easily export or print these timesheets for signing, maintaining accurate records as required by law.

One of the key advantages of using Connecteam is the detailed reports it generates. These insights can help you make informed decisions about resource allocation, identify areas for improvement, and ensure your employees are working within the legal limits.

For example, you can quickly spot if an employee is approaching the 48-hour weekly limit set by the EU or if they are not receiving the mandatory 11 consecutive hours of daily rest.

An illustration showing Connecteam’s time clock interface

However, it’s important to note that simply having a time-tracking system in place does not automatically guarantee compliance with the EU time-tracking law.

It’s your responsibility to ensure that you are using the software correctly and adhering to all legal requirements. This includes:

  • Properly categorising work hours, breaks, and overtime
  • Regularly reviewing timesheets for accuracy
  • Addressing any instances of non-compliance promptly
  • Maintaining records for the required time period
  • Ensuring employees receive their entitled rest periods and breaks

By combining the power of a robust time-tracking system like Connecteam with diligent record-keeping and compliance monitoring, you can navigate the EU time-tracking law with confidence.

Don’t wait until the last minute to address the July 1 deadline.

Get started for free with Connecteam today and ensure a smooth transition and maintain compliance with the EU time-tracking law when it takes effect.

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Working Night Shift and Staying Healthy: A Guide for Managers https://connecteam.com/e-working-night-shift/ https://connecteam.com/e-working-night-shift/#respond Fri, 31 May 2024 20:07:23 +0000 https://connecteam.com/?p=133771 Working the night shift can have negative health effects on your employees. Learn 7 of the most common health issues they may face and strategies you can use to help them combat these problems. Shift work, particularly the night shift, is commonly known as the most difficult type of work schedule because it can negatively...

The post How to Work Night Shift and Stay Healthy: A Manager’s Guide to Supporting Employees appeared first on Connecteam.

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Working the night shift can have negative health effects on your employees. Learn 7 of the most common health issues they may face and strategies you can use to help them combat these problems.

Shift work, particularly the night shift, is commonly known as the most difficult type of work schedule because it can negatively impact employees’ mental and physical health.

Our bodies thrive on routine, and a key part of that routine is a natural sleep cycle regulated by sunlight. Night shifts throw a wrench into this delicate balance, potentially leading to a cascade of health problems. 

In this article, I’ll discuss some of the most common issues associated with working the graveyard shift and offer tips on how you can support your employees to mitigate some of the harmful effects. 

Health Effects of Working the Graveyard Shift

While the night shift might be necessary to keep your business running, employees who work these shifts tend to have higher rates of absenteeism and take more sick days due to the negative health effects of working through the night.

To combat this, it’s important to be aware of how working the graveyard shift can impact your staff. Let’s review some specific health concerns and strategies you can use to reduce their effects.

Health Effects of Working the Graveyard Shift

Interference with the body’s natural sleep cycle

Our bodies have a built-in 24-hour internal clock called the circadian rhythm. This rhythm regulates things like sleepiness, hormone production, and even digestion. It’s naturally set for us to be awake and alert during the day (when there’s sunlight) and to wind down and sleep at night (when it’s dark).

Night shifts disrupt this delicate balance and can cause shift work disorder, also known as shift work sleep disorder. This disorder can cause insomnia when workers attempt to sleep during the day and excessive sleepiness while working, among other problems.

How to support your staff

Encourage employees to maintain a regular sleep schedule, even on their days off. While sleeping during the day can be difficult, you can provide items like eye masks, blackout curtains, and earplugs to block out light and sound. 

Provide your staff with resources on the importance of good sleep and strategies to help them get enough rest during the day so they’re alert for their shifts.

Higher risk of cancer

Studies show that long-term night work can lead to an increased risk of breast cancer, digestive cancer, and skin cancer. Women who’ve worked the night shift for several years are actually 19% more likely to be diagnosed with one of several cancers. Research has also found that the risk of breast cancer in women increases by 3.3% for every five years of night work. 

How to support your staff

Encourage employees to get regular cancer screenings, such as mammograms, skin checks, and colonoscopies. Provide information about available health benefits from the company’s health insurance or employee wellness program and help facilitate access to these services.

Psychological effects

Sleep deprivation causes more than just physical ailments; it can have psychological effects, too. Depression, anxiety, irritability, mood swings, and decreased cognitive function are all associated with working the night shift.

According to a recent study, employees with a higher risk for developing shift work disorder experienced more depression, anxiety, and stress than low-risk employees.

How to support your staff

Maintain open communication with your night-shift staff. Check in with them regularly and let them know you’re there for them if they need emotional support. As part of your company’s employee wellness program, you can also offer free or discounted access to therapists and psychiatrists.

🧠 Did You Know?

Several websites offer online mental health services, where individuals can see licensed counselors virtually. These resources make mental health care more available and affordable.

Betterhelp and Talkspace are both popular options, and you may want to consider partnering with them to provide employees with accessible mental health services.

Cardiovascular problems

Studies show that night workers are more likely to experience heart problems, like high blood pressure, enlarged hearts, and even heart attacks. This is due to the body’s internal battle between its natural sleep-wake cycle and the demands of the night shift schedule.

The disruption of the natural sleep cycle reduces melatonin production, which can cause the body to release more stress hormones like cortisol. Chronically elevated cortisol can contribute to high blood pressure, inflammation, and even changes in how your body uses cholesterol—all factors that can increase the risk of heart disease.

How to support your staff

Make sure you offer a health insurance plan that specifically covers cardiovascular health services. Plans should include preventive care, routine screenings, cardiologist visits, and treatment for heart-related conditions.

💡 Pro Tip:

Create a group chat for all your nighttime staff using Connecteam’s team instant messaging feature to maintain communication with your team, even if employees aren’t in the same locations. You can share health tips and words of encouragement and enable your employees to chat and support each other right from their mobile devices.

Digestive problems

Compared with day workers, night shift workers more frequently experience stomach issues, such as abdominal pain, diarrhea, constipation, nausea, change in appetite, and indigestion.

There are two main reasons for this: one, it’s unfortunately another side effect of disturbed sleep. Two, employees working the graveyard shift may not eat regular meals during the day and during their shifts. Irregular working hours may make them more likely to eat quick snacks instead of well-rounded meals. 

How to support your staff

Schedule regular meal breaks during night shifts and provide nutrient-dense meal and snack options. If your night shift staff work in multiple locations, you can give them meal vouchers, gift cards, or monthly stipends to buy themselves food for their shifts. 

You can also provide resources on maintaining a healthy eating schedule. Consider holding in-person events with a nutrition coach to speak to your team. 

Or, you can share information virtually with a recorded video. Let your team know about the importance of the recorded session and post it on your company updates feed so everyone’s aware. You can also store additional resources in your company knowledge base.

Burnout and low motivation

Only 15% of employees report feeling motivated, and the numbers can be even lower among your night shift team. Lack of quality sleep can zap energy levels and make it harder to focus, contributing to feelings of burnout and low motivation. This can also be a risk factor for depression.

Night shift workers might struggle to stay engaged and productive during their shifts, impacting their well-being and potentially the team’s overall performance.

How to support your staff

When employees feel motivated, their work performance increases by 20%. Here are a few ways to boost team motivation and combat burnout:

  • Give employees some control over their work. Let them make decisions, solve problems, and own their projects so they feel a sense of responsibility and ownership.
  • Provide incentives, such as gifts, bonuses, and gift cards
  • Make employees feel valued by publicly acknowledging their contributions to the team using Connecteam’s company updates feature. Customize and share digital badges of recognition, send messages of encouragement, and employees can comment, like, and respond with emojis to boost engagement.
  • If possible, organize team-building events, casual get-togethers, or even small celebrations to create community.
  • Communicate with your team and help them see the bigger picture and how their role contributes to the company’s success.

Physical injury

Night shifts are associated with a higher risk of injuries. This can be due to several factors, including fatigue from disrupted sleep patterns, lower alertness levels during nighttime hours, and potentially reduced staffing compared to daytime shifts. 

With less supervision and a less lit environment, the risk of accidents and mistakes can increase.

How to support your staff

  • Ensure proper lighting at job sites to minimize fatigue and make sure employees can see what they’re doing while working. 
  • Plan employee breaks throughout the night to combat fatigue.
  • Conduct regular safety trainings to reinforce existing safety protocols and best practices to prevent accidents. If you manage a construction team, for example, you could conduct a training session on fall prevention to educate crew members on common hazards at nighttime. This might include how to properly use fall protection equipment like harnesses and lifelines and workplace safety tips to minimize fall risks on job sites. 

💡 Pro Tip:

Create customized, interactive training courses and deliver them to your team using employee training software, like Connecteam. Staff can complete training right from their mobile devices, and you can monitor their progress along the way.

5 More Tips to Support Your Night Shift Crew

5 tips to support your night shift crew

Establish a good communication system 

Graveyard shift workers can often feel disconnected from their day-shift coworkers. Clashing sleep schedules and limited opportunities for casual interaction can create a social barrier. This disconnect can lead to feelings of isolation and make effective communication more difficult, making collaboration and team engagement more challenging.

However, you can use an employee management app, like Connecteam, to help your night shift employees stay connected and engaged. 

Connecteam comes with multiple communication channels to keep all your staff aligned and recognition and rewards features to boost employee appreciation and engagement.

Key features include:

📚 This Might Interest You: 

Check out our roundup of the best team communication apps of 2024.

Implement a buddy system

Pair up night shift workers to look out for each other during their shifts. This not only encourages team bonding but also helps avoid unsafe working conditions. 

Adrian Wade, Head of Supply Chain at BlueSky Solutions, says:

“A buddy system can also help alleviate the impact of working the night shift. Buddies can look out for each other, watch for signs of sleep deprivation and fatigue, and help motivate each other. They can also act as a warning for managers if someone is too fatigued to work.”

Prioritize employee work-life balance

Time away from work is crucial for your staff’s physical and mental health, and it’s important that employees know that you genuinely care about their work-life balance. A few ways to do this are to respect their day-off preferences, offer flexible scheduling to accommodate sleep routines, conduct regular check-ins with staff, arrange team-building activities, and avoid calling or texting staff on their days off.

You can use a time off management app so employees can submit time off requests directly from their mobile devices. The app will also flag you automatically if you accidentally schedule someone who’s on vacation.

Nathan Willard, President of HOODZ, says:

“Night shift workers want the same things that all workers are looking for in a work environment. Additionally, it’s important for their leadership to understand that third shift workers, in particular, may have other commitments in their daily lives that make the late work hours more appealing. Understanding why they want to work for you during that time will give you a better connection with your team.”

Provide reusable water bottles to encourage hydration

Shift workers spend a lot of time on their feet, which leads to dehydration. They may turn to coffee or energy drinks to stay awake, which can be dehydrating and cause their energy levels to crash.

Staying hydrated is actually crucial to staying alert and awake and even helps regulate bodily processes. 

Providing all your staff with a reusable water bottle is a great way to encourage everyone to drink more water. You can even brand it with your company logo for some free marketing.

Encourage time outside

Night shift workers are prone to vitamin D deficiencies because they sleep during the day and spend less time in the sun. This can have negative consequences on bone health, the immune system, and on their mental health. 

Actively encourage your night shift team to spend at least an hour outside before coming into work. You can work together with your staff to structure their sleep schedules so they can get some sunshine before coming in for their shifts. 

If your employees work in the same area, you could even give your night shift crew the day off once in a while and arrange an outdoor team activity, such as hiking or a day by the nearest body of water. 

Are there Benefits of Working the Night Shift?

I’ve presented some pretty negative health effects of working night shifts, but the graveyard shift does have some benefits for employees, such as:

  • Fewer crowds and less traffic: Night shifts often mean working in a quieter environment with fewer colleagues or customers around. This can be ideal for people who prefer a calmer work atmosphere and can improve focus for tasks requiring concentration. Commuting during off-peak hours can also mean less traffic.
  • Higher pay: Many companies offer premium pay or shift differentials for night shifts to incentivize employees to take on these less desirable hours. 
  • More flexible schedules: Night shifts can sometimes offer more flexibility in scheduling, particularly when compared to traditional 9-to-5 jobs. This can be appealing for people who have other commitments during the day.
  • Increased autonomy: Night shift teams are usually smaller, leading to potentially less supervision and more autonomy in completing tasks. This can be good for workers who prefer working more independently and enjoy taking ownership of their work. 
  • Less competition: In certain fields, night shift positions might have less competition compared to day shift roles, which can be advantageous for someone looking to break into a particular industry or secure a job more quickly.

FAQs

Am I required to pay my night shift workers more?

In the US, employers are not required to pay employees extra for the night shift. However, the Fair Labor Standards Act (FLSA) does require that covered, nonexempt workers be paid no less than time and a half the employee’s regular rate for time worked over 40 hours in a workweek.

Is it unhealthy to work the night shift?

While there are negative health effects of working the night shift, employees and employers can work together to combat them to the best of their abilities. 

One of the most important ways to support your night shift crew is by encouraging them to get quality sleep during the daytime. Good sleep is one of the best ways to curb the negative health effects of working the night shift. 

Make sure staff have eye masks or blackout curtains in their homes to mimic nighttime so they can show up to work rested and ready to work.

Should night shift employees work 8-hour shifts?

It’s up to you how you divide your shifts and create employee schedules. The specific demands of the job and the level of physical or mental exertion required may affect how long shift are.

It’s certainly acceptable to schedule night shift workers for 8-hour shifts like any other shift. Depending on the workload, using split shifts to break the night shift into shorter segments with a break in between might be a better option.

The post How to Work Night Shift and Stay Healthy: A Manager’s Guide to Supporting Employees appeared first on Connecteam.

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The Complete 2024 Guide on Overtime for Managers https://connecteam.com/e-overtime-guide/ https://connecteam.com/e-overtime-guide/#respond Fri, 31 May 2024 19:51:52 +0000 https://connecteam.com/?p=133766 Understanding overtime is crucial to ensuring compliance, supporting employees’ rights and well-being, and managing labor costs. With our complete guide, learn what overtime is, how to calculate it, and more. While overtime can be a useful solution to understaffing and peak demand periods, you should use it carefully to avoid high labor costs and protect...

The post Complete 2024 Manager’s Guide on Overtime appeared first on Connecteam.

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Understanding overtime is crucial to ensuring compliance, supporting employees’ rights and well-being, and managing labor costs. With our complete guide, learn what overtime is, how to calculate it, and more.

While overtime can be a useful solution to understaffing and peak demand periods, you should use it carefully to avoid high labor costs and protect employees’ health and well-being. 

Read on for our comprehensive guide on overtime—so you can navigate overtime laws responsibly and effectively. 

Key Takeaways

  • Overtime is additional compensation paid to eligible employees who work more than a certain number of hours a day or week. The specific requirements for overtime vary between federal and state laws.
  • The federal Fair Labor Standards Act (FLSA) requires covered employers to pay non-exempt employees 1.5 times their regular rate of pay for time worked over 40 hours in a week.
  • Understanding the overtime laws that apply to your business is essential to avoiding compliance issues, reducing labor costs, and supporting your employees’ well-being.

What Is Overtime?

Overtime is premium compensation paid to eligible employees who work beyond a certain number of hours in a week or day. The specific employees entitled to overtime, thresholds, and rates vary according to federal and state laws. 

Employees may work overtime as part of their regular schedule or at short notice to cover business demands.

Screenshot of the Connecteam overtime feature

Federal overtime law

How many hours qualify as overtime?

The Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees at least 1.5 times their regular rate of pay for any time worked over 40 hours in a workweek, which is often considered the standard workweek for full-time hours.  

Under the FLSA, a workweek is 7 consecutive 24-hour periods (168 hours). Employers can choose what constitutes a workweek—the hours can start at any time on any day but must be fixed and recur regularly. 

Night shifts, holidays, and weekend work aren’t overtime unless they exceed 40 hours. 

Employers generally must pay employees for overtime on their next regular payday following the pay period where the overtime was worked. 

Employers covered by the FLSA must keep wage and hour records for at least 3 years, including:

  • The regular hourly pay rate for any week the employee works overtime.
  • Total overtime pay for the week.

Under the FLSA, employers can’t retaliate against employees who report overtime violations to the Department of Labor (DOL) or take legal action. 

Covered employers must also display a Minimum Wage Poster where employees can easily see it. This poster includes overtime information for employees. 

What is an employee’s regular rate of pay?

The FLSA defines an employee’s regular rate of pay as “all remuneration for employment paid to, or on behalf of the employee.” 

Remuneration includes:

  • Regular wage or salaries.
  • Tip credits.
  • Non-discretionary bonuses.
  • Shift differentials. 
  • Commissions. 

There are some specific exceptions to this, including:

  • Certain gifts.
  • Paid leave when no work is done.
  • Discretionary bonuses that meet specific criteria. 
  • Expenses reimbursed by the employer, like travel and mobile plans.
  • Reporting pay.
  • Payments made under a profit-sharing plan.

Regular rates of pay can’t be less than the applicable minimum wage under the FLSA or relevant state law—whichever is higher. 

Which employers must comply with the FLSA overtime provisions?

The FLSA applies to your business if it meets at least one of the following criteria:

  • Its workers engage in interstate commerce, including regularly sending emails or making phone calls interstate. 
  • It generates annual gross sales/business of $500,000 or more. 
  • It’s a hospital, residential care, or educational facility. 
  • It’s an activity of a public agency.  

Most employers are covered by meeting the first and second criteria. 

Which employees are covered by the FLSA overtime provisions?

Even if the FLSA covers your business, you need to pay overtime to non-exempt employees only. 

Exempt employees don’t receive overtime pay. Employees exempt from the overtime provisions of the FLSA include:

  • Executive, administrative, and professional employees earning at least $684 weekly. 
  • Outside salespersons.
  • Certain commissioned sales employees.
  • Any computer employee who receives a salary or fees of at least $684 weekly. 
  • Employees in office or non-manual work who earn at least $107,432 annually (at least $684 weekly).
  • Farmworkers.
  • Airline employees. 
  • Local delivery drivers. 

This isn’t an exhaustive list, and each exemption has specific criteria. 

💡 Pro Tip:

The salary thresholds for FLSA-exempt employees are due to change. On July 1, 2024, the minimum weekly salary increases to $844—and to $1,128 in January 2025. This means some employees may no longer be exempt, and overtime provisions will apply to them. Review your workforce’s salaries closely to prepare for these changes and ensure you don’t violate federal overtime laws unintentionally. 

Contractors and freelancers aren’t entitled to overtime pay under federal law. 

State laws on overtime

In addition to the FLSA, state laws regarding overtime may apply to your business. 

Some of these laws mirror the FLSA’s requirements. Where they’re different, the law that’s more generous to the employee usually applies. 

Several states have overtime laws that offer better benefits to employees than the FLSA. For example, they may:

  • Apply to employees not covered by the FLSA. In New York, for instance, farm workers receive overtime pay.
  • Require employers to also calculate and pay employees for daily overtime. For instance, in Alaska, workers earn overtime pay for any hours worked in excess of 8 in a single day.
  • Impose a higher overtime rate—for example, a double time rate. For example, in California, employees receive double time pay for any hours worked over 12 in a 24-hour period.

Check with the DOL or equivalent in your state and speak with a labor attorney to confirm your overtime obligations in the state where you and your employees are located. Even if you employ remote employees located in a different state, the law of the state where the employee is based usually applies.

🧠 Did You Know?

Federal and state laws set minimum overtime requirements. Many employers go beyond this and pay employees a higher overtime rate or overtime on holidays to attract and retain employees. 

Collective bargaining agreements 

Collective bargaining agreements are formal agreements between employers and unions that set out the pay and other working conditions for groups of workers. They may also address overtime. 

While unions can’t waive employees’ rights under the FLSA or state laws, collective bargaining agreements can contain more generous overtime rules or address issues the FLSA doesn’t, such as requiring notice periods. 

As a manager, you must be aware of any collective bargaining agreements covering your employees and their overtime provisions. 

What Happens if You Violate Overtime Laws?

If you fail to pay your employees overtime as required, you may face various consequences at the federal and state levels. 

The federal DOL can start administrative, litigation, and criminal proceedings against your business for FLSA overtime violations. 

Administrative

The DOL can investigate alleged overtime violations and supervise repayments to employees. It can also help employees reach settlements with employers, requiring employers to pay back wages and liquidated damages. 

Employers may face civil money penalties for willful or repeated violations. Violations before January 16, 2024 attract a maximum penalty of $2,374. The maximum penalty for violations beginning January 16, 2024 is $2,451.

Litigation

The DOL has the power to sue employers for overtime violations on behalf of employees. Employees can also file their own lawsuits. 

During litigation, the DOL can seek backpay (compensation for unpaid wages), liquidated damages, and civil money penalties, while employees can seek backpay, liquidated damages, attorney fees, and court costs. 

Criminal

Willful or repeated overtime violations can result in criminal prosecution. Penalties for criminal prosecutions include fines and imprisonment in the most serious cases. 

❌ What Not To Do:

Overtime violations can be costly—especially intentional ones. A Delaware home care agency was recently ordered to pay over $1 million in back pay, liquidated damages, and civil penalties for willfully failing to pay overtime wages. The Wage and Hour Division District Director James Cain explains, “The Department of Labor is committed to enforcing labor standards to ensure workers receive the highest protections to which they are entitled.”

Impact of Overtime on Employees’ Well-being

Overtime may seem like an easy solution to understaffing, last-minute shift changes, and unexpected workload increases. 

However, it’s essential to consider the potential impacts on employee health, well-being, and productivity

The federal Occupational Safety and Health Administration (OSHA) warns, “Long work hours may increase the risk of injuries and accidents and can contribute to poor health and worker fatigue. Studies show that long work hours can result in increased levels of stress, poor eating habits, lack of physical activity and illness.”

Too much overtime can put employees at increased risk of burnout and health issues, such as hypertension, diabetes, and depression. 

Overtime also affects worker productivity. Fatigued workers are less productive and more likely to make mistakes. 

📚 This Might Interest You:

The National Institute for Occupational Safety and Health (NIOSH) offers helpful resources and advice about fatigue and work. 

How To Calculate Overtime Pay

Here are the steps to calculate overtime pay under the FLSA. 

Work out how many overtime hours the employee worked

To calculate the number of overtime hours worked, subtract 40 from the total number of hours worked

For example, an employee works 44 hours in 1 week. The total overtime hours for that week are 44 – 40 = 4. 

🧠 Did You Know?

Do meal or rest breaks count towards hours worked? Generally speaking, employees must be paid for shorter breaks (of around 20 minutes or less), and these breaks count towards hours worked for overtime purposes. Breaks of 30 minutes or more don’t need to be paid and don’t count towards overtime—as long as the employee is relieved of all work duties. 

Identify the employee’s regular rate of pay

The regular rate of pay is an employee’s total compensation in the workweek divided by the total number of hours they worked. 

If an employee is paid hourly, their regular rate of pay is their normal hourly rate. 

If they’re paid on a piece-rate basis (based on the amount of work they do rather than the hours they work), divide their total weekly earnings by the total number of hours they worked in the same week. 

If the employee receives a salary, divide their weekly salary by the number of hours it covers. 

Calculate their overtime rate

To work out their hourly overtime rate, multiply their regular rate of pay by 1.5

Continuing the above example, the employee is paid $12.50 an hour. Their overtime rate is 12.50 x 1.5 = $18.75. 

Calculate their total overtime pay

To do this, multiply the number of overtime hours they worked (step 1) by their hourly overtime rate (step 3)

In our example, the employee’s overtime pay is 4 x 18.75 = $75. This is in addition to their pay for their regular hours that week. 

📚 This Might Interest You: 

Check out our detailed guide to calculating overtime, which includes our handy overtime calculator

Fluctuating workweek method

This method can be used for non-exempt employees who work fluctuating workweeks and receive a fixed weekly salary regardless of the number of hours they work. This method provides a different calculation for overtime, resulting in employees receiving 0.5 times for each hour of overtime. 

Learn more about using this method here

Overtime FAQs for Managers

Do I have to pay minor employees overtime?

Under the FLSA, employees under 16 can’t earn overtime due to the restrictions on their work hours. Fourteen-year-olds and 15-year-olds can’t work more than 18 hours in a workweek when school is in session and 40 hours when it isn’t. 

The FLSA doesn’t restrict the number of hours that 16 and 17-year-olds can work. So, you must pay them overtime if they’re non-exempt employees and work more than 40 hours in a workweek. 

Different laws may apply at the state level. 

Do I have to provide employees with notice of overtime?

The FLSA doesn’t require you to give employees specific notice of mandatory overtime. 

However, last-minute overtime requests can lead to unhappy employees. Not giving them enough notice often disrupts other commitments and plans they’ve made outside of work, including appointments, childcare arrangements, and social engagements. 

For this reason, it’s a good idea to give employees as much notice as possible. This allows them to rearrange personal appointments or commitments. 

Several state laws do require employers to provide employees with notice of overtime. Also, an employee’s employment contract, a collective bargaining agreement, or your employee handbook may set out minimum notice periods for overtime that you must comply with. 

Also keep in mind that predictive scheduling laws or fair workweek laws may require you to compensate employees for last-minute schedule changes, including overtime. 

Can I force employees to work overtime?

Under the FLSA, you can force an employee to work overtime as long as it doesn’t create a health or safety risk or contradict a term of their employment contract or a collective bargaining agreement. You must also pay them 1.5 times their regular pay rate for any overtime hours. 

Some employees may be able to refuse overtime under anti-discrimination laws. For example, under the Americans with Disabilities Act (ADA), employers must make reasonable accommodations for workers with disabilities. Not requiring an employee to work mandatory overtime may be a reasonable accommodation, provided overtime isn’t an essential function of the job and the adjustment doesn’t cause undue hardship to your business. 

Some states have laws related to mandatory overtime, often concerning healthcare workers. For example, New York’s mandatory overtime protection law prohibits employers from forcing nurses to work overtime—with some limited exceptions. 

Several states also have “one day’s rest in seven” laws. For instance, in Illinois, employers must give employees at least 24 hours of rest time in every consecutive 7-day period. Illinois employees could legally refuse overtime that violates this requirement. 

As a manager, you should weigh the potential costs and benefits of using mandatory overtime where it’s legal. 

In addition to impacting employees’ well-being, mandatory overtime may lead to employee resentment, which can affect their job satisfaction. 

Can I fire an employee who refuses to work overtime?

The FLSA doesn’t usually prevent employers from acting against employees who refuse mandatory overtime (where mandatory overtime is legally allowed). So, in an at-will employment relationship, you can terminate an employee who refuses to work overtime. 

However, terminating or disciplining an employee for refusing to work overtime can raise other legal issues. For example, if you take action against some employees and not others, you may face allegations of discrimination. 

Is there a limit to how much overtime employees can work?

The FLSA doesn’t limit how many hours employees can legally work in a day or how many hours they can work in a week. However, employees can refuse to work additional hours if doing so poses a health or safety risk. Employment contracts and collective bargaining agreements may also limit employees’ hours. 

State laws may restrict working hours. These include child labor laws that limit the number of hours minors can work and “one day’s rest in seven” laws.

Several regulated industries also limit work hours. For example, federal regulations say that drivers carrying passengers can only drive up to 10 hours a day after 8 consecutive hours off. They also can’t drive more than 60 hours in 7 consecutive days or 70 hours in 8 consecutive days. 

Again, you must consider the disadvantages of working too many hours—including the impact on employees’ work quality and health. 

Do I have to give employees minimum time between shifts?

Nothing in the FLSA requires employers to give employees a certain number of days or hours between shifts, even if they’ve worked overtime. 

However, some states regulate this issue. For example, they may require a minimum number of hours off for employees who work closing and consecutive opening shifts (called “clopening” shifts). They may also give employees the right to refuse clopening shifts or require employers to pay higher wages to employees who work consecutive shifts with only short breaks between them. 

Can I offer compensatory time instead of overtime pay?

Compensatory time is paid time off for accrued overtime instead of overtime pay. Under the FLSA, only federal or state agencies can offer compensatory time to non-exempt employees. 

Private employers can offer comp time to employees exempt from the FLSA overtime provisions.  

How To Manage Overtime Effectively

Here are our tips for managing overtime. 

Create an overtime policy

A clear policy ensures a consistent approach to overtime in your organization. It helps managers understand how to oversee overtime and employees understand what their responsibilities are. 

It should set out:

  • Which employees are entitled to overtime—e.g., exempt vs non-exempt employees. 
  • How overtime is calculated. 
  • Overtime pay rates. 
  • Whether employees are required to work mandatory overtime. 
  • Consequences of employees refusing to work mandatory overtime. 
  • The authorization process for overtime. 
  • Details of advance notice of overtime work, where possible. 
  • Any overtime caps. 
  • If employees are entitled to compensatory time rather than overtime. 

Make sure your overtime policy complies with relevant federal and state laws. Store it somewhere your employees can easily access it, such as an intranet or employee handbook. You can also include it in employee onboarding materials. 

💡 Pro Tip:

Use Connecteam’s company knowledge base to store important policies—like your overtime policy—so employees can access them anytime, anywhere. 

Communicate with your employees

Ensure your employees are aware of and understand your overtime policies and procedures. Communicate any updates to them in real-time, for example, via a team chat app or email. 

Make it clear who employees can contact with questions about overtime, such as the HR department, payroll, or their manager. Also, detail how they can get in contact—via email, phone, or in person. 

Encourage feedback from your employees. They can help you understand which aspects of your overtime policy work well and which areas need improvement. Pulse surveys and regular employee check-ins are good ways to collect feedback. 

Regular check-ins are also great for monitoring employee well-being and identifying workers who are fatigued or at risk of burnout. 

Consider ways to reduce overtime

While overtime is sometimes unavoidable, it can be costly to your business and negatively impact employees. 

For these reasons, you may look for ways to reduce the overtime you require employees to work. Here are some suggestions:

  • Hire part-time or temporary workers to pick up the additional hours. This approach can be especially helpful during peak periods. 
  • Set an overtime cap. This may distribute overtime more evenly across employee schedules and make labor costs more predictable. 
  • Ask employees to work split shifts. This can give you the same schedule coverage as longer shifts while reducing employees’ total work hours and letting them take a break. 
  • Offer employees flexible work schedules. Flexible work schedules allow employees to choose their hours and have been shown to increase productivity. While flexible schedules don’t suit every business, they may help address overtime in yours. 
  • Cross-train employees. When employees have multiple skills, it’s easier to adjust schedules. This approach gives you other backup options, reducing reliance on 1 or 2 employees who quickly accrue overtime. 

💡 Pro Tip:

Overtime can be a cost-effective tool when used strategically to manage short-term workload spikes or meet specific deadlines. Ideally, it should be used as an exception rather than regular practice. 

Digitize overtime management

Using scheduling and time-tracking software can streamline your overtime management and support compliance. Most apps let you create digital schedules, which makes it easy to predict overtime totals and make adjustments before sharing schedules with your employees. 

This type of software also typically creates a digital record of schedules and employee hours, including start, end, and break times. This helps you comply with the FLSA’s overtime recordkeeping requirements. 

With overtime metrics—such as who’s working the most overtime and when—you can identify potential causes of unnecessary or excessive overtime and find ways to address them. 

🧠 Did You Know?

Connecteam is an overtime app that’s ideal for managing overtime. With just a few clicks, you can set custom rules for overtime compliance and receive alerts when employees exceed their hours. Plus, Connecteam can automatically clock out employees who go into unapproved overtime, helping keep it in check. Connecteam also generates accurate timesheets down to the second, making calculating overtime pay a breeze. 

An illustration showing Connecteam’s scheduling interface

Common Overtime Mistakes and How To Avoid Them

Misclassifying employees

An essential aspect of overtime compliance is understanding which employees are covered by overtime laws. For example, if you incorrectly classify an employee as exempt from the FLSA when they’re not, you won’t pay them the overtime they’re entitled to. 

A common FLSA classification mistake is the assumption that all salaried employees are automatically exempt without considering the detailed criteria related to their responsibilities. For example, a salaried restaurant manager who spends most of his time serving customers and clearing tables due to staff shortages may not be exempt from the FLSA’s overtime provisions based on his duties. 

Authorities also look carefully at the classification of independent contractors vs. employees. Some employers try to avoid paying overtime by classifying workers as independent contractors when they’re employees

Solution: To help reduce the risk of misclassification, create detailed job descriptions for each role to understand if they are covered by overtime provisions under the FLSA and state law. The DOL’s final rule provides guidance on how to classify workers for FLSA purposes. You should also speak to a labor lawyer to confirm your employee classification. 

Miscalculating overtime

If you don’t calculate overtime correctly, you’ll underpay your employees, leading to overtime violations. Overtime miscalculations can occur as a result of:

  • Not accurately tracking employees’ hours.
  • Failing to calculate time worked accurately—for example, by not counting short breaks.
  • Incorrectly calculating employees’ regular rate of pay.
  • Using your pay period to calculate an average overtime rather than a workweek. 

Solution: Ensure you understand overtime calculations under the FLSA and relevant state laws. Accurately tracking your employees’ time—ideally with time-tracking software—is crucial to avoiding this mistake. 

Refusing to pay unauthorized overtime

Some employers think they can refuse to pay employees who work overtime without prior approval. But the rule is simple—if non-exempt employees work more than 40 hours in a workweek, they’re entitled to overtime regardless of pre-approval

Solution: Always pay your employees for any overtime they work. If unauthorized overtime is a problem, review your overtime policy and train employees on the relevant overtime procedures. 

💡 Pro Tip:

If unauthorized overtime continues to be a problem even after you’ve discussed it with employees, you might need to take more severe measures. Alison Green, author of the Ask a Manager blog, recommends requiring such team members to work fewer hours after overtime has occurred. 

Support Effective Overtime Management with Connecteam

Understanding how overtime works is crucial to ensuring your business complies with the FLSA and relevant state labor laws. You can minimize labor costs and support your employees’ health and well-being by managing overtime effectively. 

Scheduling and time-tracking software is one of the best overtime management tools. Connecteam offers various features, including automatic overtime calculations, real-time labor cost metrics, and custom scheduling rules to limit overtime and support compliance. 

To learn more about how Connecteam can help you manage your overtime, try it for free today!

FAQs:

Is overtime a waste?

While small amounts of overtime may be occasionally necessary, overtime can increase labor costs and affect your employees’ health and well-being. Employees who work overtime are more tired and, as a result, more likely to make mistakes. They’re also at higher risk of burnout and health problems. 

What is an example of overtime?

An example of overtime under the federal Fair Labor Standards Act is a restaurant server who works 42 hours in a workweek. In this example, she’s worked 2 hours over the standard 40-hour workweek and is entitled to overtime pay for those 2 hours. 

Disclaimer

The information presented on this website about overtime is a summary for informational purposes only and is not intended as legal advice. However, laws and regulations regularly change and may vary depending on individual circumstances. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Therefore, we strongly recommend that readers seek guidance from their legal departments or qualified attorneys to ensure compliance with applicable laws and regulations. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.

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What is a Compressed Work Schedule? Types, Pros, Cons, & Tips https://connecteam.com/e-compressed-schedule/ https://connecteam.com/e-compressed-schedule/#respond Thu, 30 May 2024 19:54:45 +0000 https://connecteam.com/?p=133777 Compressed schedules shorten workweeks by using longer days. This guide covers types, pros, cons, legal implications, and implementation tips. Many modern-day workers dislike traditional 5-day work schedules. Compressed schedules allow employees to work the same number of hours per week but in fewer days. This provides longer periods off while maintaining productivity. However, implementing a...

The post What Is a Compressed Schedule? Examples, Pros, Cons, and Implementation appeared first on Connecteam.

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Compressed schedules shorten workweeks by using longer days. This guide covers types, pros, cons, legal implications, and implementation tips.

Many modern-day workers dislike traditional 5-day work schedules.

Compressed schedules allow employees to work the same number of hours per week but in fewer days. This provides longer periods off while maintaining productivity.

However, implementing a compressed schedule requires careful consideration. In this guide, we discuss types, pros and cons, and implementation strategies for compressed schedules.

Key Takeaways

  • A compressed schedule allows employees to work standard full-time hours over fewer days. Variations include 4/10, 9/80, and 12-hour shifts.
  • Compressed schedules enhance work-life balance and reduce commuting costs, but they may increase fatigue and complicate scheduling and payroll.
  • Successful adoption requires clear communication, a trial period to gather feedback, and advanced scheduling tools to adjust schedules as needed based on operational and employee feedback.

What Is a Compressed Work Schedule?

A compressed work schedule allows employees to complete a full-time work week (typically 35-40 hours) in fewer days than the standard 5-day workweek. This is achieved by working longer hours each day for fewer days.

Compressed schedules are most commonly used in traditional office settings where work can be completed independently and doesn’t require constant customer service or production flow. This way, employees can dedicate longer stretches of uninterrupted time to their tasks.

However, they’re also used in shift-based settings where longer shifts help manage staffing shortages and minimize the total number of shift changes.

Compressed schedules can range from fixed to flexible depending on company needs and employee preferences. 

A fixed compressed schedule is common for roles where teamwork and collaboration are crucial during specific hours. For example, one company might require all workers to work Monday-Thursday from 8:00 am to 6:00 pm.

In contrast, many companies offer flexible compressed schedules. Employees might be able to choose which days they work longer—as long as the total hours meet a basic work requirement, which is often a specific number of hours (e.g., 40 hours).

They might also be able to decide when they start and stop working. Flexibility can be helpful for employees who need to schedule appointments or errands around their work hours.

🧠 Did You Know?

The Office of Human Resource Management considers compressed and flexible work schedules to be 2 distinct types of alternative work schedules. Under its definition, a compressed work schedule is always a fixed schedule. Meanwhile, a flexible schedule allows employees to choose the times they start and stop working—but they must work during certain core hours.  

This distinction is relevant mostly to government agencies, which must use the distinctions to ensure compliance with regulations and manage employee benefits. While these classifications can guide private employers’ policies, many private companies blend elements of compressed and flexible schedules.

Types of Compressed Schedules + Examples

Here are common types of compressed schedules and their examples:

4/10 schedule

The Connecteam job scheduler showing a 4/10 schedule.
The Connecteam job scheduler showing a 4/10 schedule.

A 4/10 schedule is a type of compressed workweek arrangement where employees work four 10-hour days. They get 3 consecutive days off each week, typically Friday-Sunday.

Structure:

  • Employees work for 10 hours from Monday to Thursday or any other 4 consecutive days (10 hours × 4 days = 40 hours).

Here’s a detailed table of a typical 4/10 compressed schedule over 4 weeks. 

WeekMonTueWedThuFriSatSun
Week 17  am – 5 pm (10 hours)7  am – 5 pm7  am – 5 pm7  am – 5 pmOffOffOff
Week 27  am – 5 pm7  am – 5 pm7  am – 5 pm7  am – 5 pmOffOffOff
Week 37  am – 5 pm7  am – 5 pm7  am – 5 pm7  am – 5 pmOffOffOff
Week 47  am – 5 pm7  am – 5 pm7  am – 5 pm7  am – 5 pmOffOff
Off

9/80 (5/4-9) schedule 

The Connecteam job scheduler showing a 9/80 schedule.
The Connecteam job scheduler showing a 9/80 schedule.

The 9/80 or 5/4-9 schedule is another type of compressed workweek that allows employees to work 9 days over 2 weeks instead of the traditional 10 days.

The 9/80 schedule spans 2 weeks, where employees work 9 days in 80 hours. They work eight 9-hour days and one 8-hour day, and get a total of 5 days off over the 2-week period.

Structure:

  • Week 1: Four 9-hour days (36 hours) + one 8-hour day (8 hours) = 44 hours.
  • Week 2: Four 9-hour days (36 hours) = 36 hours.
  • Total hours for 2 weeks: 44 + 36 = 80 hours. 
  • Extra day off every other week (for example, every other Friday off)

Here’s a detailed table illustrating a typical 4-week cycle of a 9/80 compressed schedule. 

WeekMonTueWedThuFriSatSun
Week 18  am – 5 pm  (9 hrs)8  am – 5 pm  8  am – 5 pm  8  am – 5 pm  8  am – 4 pm  (8 hrs)OffOff
Week 28  am – 5 pm  8  am – 5 pm  8  am – 5 pm  8  am – 5 pm  OffOffOff
Week 38  am – 5 pm 8  am – 5 pm 8  am – 5 pm 8  am – 5 pm 8  am – 4 pm  OffOff
Week 48  am – 5 pm 8  am – 5 pm 8  am – 5 pm 8  am – 5 pm OffOff
Off

12-hour compressed schedule

The 12-hour compressed work schedule (CWS) alternates between 3 and 4-day workweeks, with employees working 12-hour days during their scheduled work days.

This schedule allows for substantial periods off—typically 3 or 4 consecutive days each week.

Structure:

  • Week 1: Monday-Wednesday (3 days × 12 hours) + Thursday (8 hours) = 36 hours + 8 hours = 44 hours.
  • Week 2: Monday-Wednesday (3 days × 12 hours) = 36 hours.
  • Total hours for 2 weeks: 44 + 36 = 80 hours.

Here’s a detailed table illustrating a typical 2-week cycle of a 12-hour compressed schedule. 

WeekMondayTuesdayWednesdayThursdayFridaySaturdaySunday
Week 17  am – 7 pm  (12 hrs)7  am – 7 pm  7  am – 7 pm  7  am – 3 pm  (8 hrs)OffOffOff
Week 27  am – 7 pm  7  am – 7 pm  7  am – 7 pm  OffOffOffOff

🧠 Did You Know?

Certain federal workers receive night pay for any regularly scheduled work they perform between 6:00 pm and 6:00 am. While private employers aren’t required to offer night pay, doing so can incentivize employees to work longer shifts and might be useful for implementing 12-hour compressed workweeks.

Advantages of Compressed Schedules

Here are some key benefits of adopting a compressed work schedule:

  • Long weekends, every weekend: Compressed work schedules typically involve more hours per day, allowing employees to complete their weekly work hours in fewer days and enjoy extended weekends or midweek breaks. Plus, employees don’t need to request excused absences for personal matters, as they can schedule appointments and family time on their days off.

One compressed workweek employee wrote, “I love it. The in-lieu of holidays frequently leave me getting 3-4 day weekends out of it, and vacations are better when I can plan it around a holiday & and RDO, so I end up using less of my accrued time. The WLB balance worked out great, too — having a weekday off ensures I can schedule appointments without interfering with work.” 

  • Space for personal growth: Extra time off provides employees with opportunities to pursue personal projects or further education often sidelined by a hectic workweek.
  • Slashed commute costs and time: Fewer work days result in less commuting, saving on transportation costs and time spent traveling. Fewer commutes also means lower carbon footprints for the organization and employee.
  • Increased job satisfaction: An employee on a compressed schedule often experiences greater job satisfaction due to the flexibility and extended time off.
  • Lower operational costs: Businesses with fixed compressed schedules—for example, corporate offices—can save on energy, facilities management, and other operational expenses on days when the office is closed.
  • Mental refresh: Extended breaks from the workplace can help reduce burnout and improve overall mental health and job satisfaction, leading to lower turnover.
  • Focused efforts: Longer work days can encourage more concentrated work periods, with fewer starts and stops, leading to higher productivity.

Challenges of Compressed Schedules

While the benefits are substantial, there are also challenges and considerations to keep in mind. Here are some:

  • Drains stamina: The need for prolonged concentration and physical stamina in a 9,10, or 12-hour day can lead to decreased productivity as fatigue sets in. This is particularly challenging in jobs requiring continuous mental or physical engagement.

One compressed workweek employee said, “it all depends on whether you can stand that extra hour on the days you have them and whether a 3-day weekend is worth that to you. I tried it and found that last hour was freakin ENDLESS. I couldn’t keep it up but a couple of months and went back to the normal schedule.”

  • Wrangles with workload: Implementing compressed schedules complicates scheduling and payroll. For businesses with shift-based operations, aligning team schedules to cover all roles effectively—without overlaps or gaps—can be difficult due to the reduced number of workdays. Also, adjusting payroll systems for non-standard work hours to comply with overtime regulations can be challenging.
  • Alters team chemistry: For businesses that allow for varying work days—for example, businesses with flexible compressed schedules—different off days among team members can disrupt project timelines and communication, potentially affecting team chemistry and workflow.
  • Strains service standards: For roles with direct customer interaction, longer workdays may negatively impact customer service quality as employees become fatigued.
  • Impacts work-life quality: While aimed at improving work-life balance with longer weekends, the intensive workweek may leave employees too exhausted to enjoy their time off.

I did CWS for three years,” one compressed workweek employee wrote. “I ended up dropping it as I hated it. Maybe if my agency was a bit more flexible about the start time/end time, I would try it again. But being in the office from 7ish to almost 6 and then commute back home leaves me with hardly any time at home to have my hobbies. 

  • Amplifies health risks: Increased work hours heighten health and safety risks. This leads to a higher chance of errors and accidents, especially in critical sectors like healthcare and construction.

📚 This Might Interest You:

Read our in-depth guide on common shift types and industries that use them.

When implementing a compressed work schedule, ensure it complies with employment laws and meets all contractual and legal obligations.

We discuss some of these below. 

Overtime rules for non-exempt employees

Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay for any hours worked over 40 in a workweek. This can complicate compressed schedules, as longer work days might lead to overtime hours payments if employees exceed 40 hours in a week.

For example, if a non-exempt employee works a 9/80 schedule (nine 9-hour days and one 8-hour day over 2 weeks), they’d work 45 hours in 1 week, requiring overtime pay for the 5 extra hours​ (DOL)​.

💡 Pro Tip:

Redefine your workweek to help with overtime costs. The FLSA defines a workweek as a fixed, recurring period of 168 hours across seven consecutive 24-hour periods. So if your employees work four 9-hour days Monday-Thursday and an additional 8 hours every other Friday, consider setting your workweek from Friday noon to Friday noon. This setup ensures all 40 work hours are neatly contained within the defined workweek, helping you avoid overtime.

State-specific overtime regulations

Some states have stricter overtime regulations. For instance, in California, non-exempt employees must receive overtime pay if they work more than 8 hours in a day—even if they don’t exceed 40 hours in a week. This makes implementing compressed schedules more challenging in such states​.

You might need to comply with other federal and state laws and regulations when implementing a compressed workweek. Here are some examples: 

Speak to a labor lawyer to learn more about the laws and regulations that might impact you. 

Also, don’t forget that union agreements might also impact your ability to implement these schedules. 

6 Steps for Implementing Compressed Schedules Effectively

Implementing compressed schedules effectively requires careful planning and communication. Here are the key steps.

  1. Assess feasibility: Evaluate whether certain roles and tasks are suitable for a compressed schedule, considering impacts on operations and customer service.
  2. Develop a proposal: Outline the benefits, potential challenges, and solutions for the new schedule. Include strategies to minimize any negative impacts. For example, a strategy for helping employees who are struggling with the new schedule might be offering more flexibility.
  3. Obtain approval: Present the proposal to stakeholders like supervisors, HR, and the team, ensuring compliance with company policies and labor laws. 
  4. Communicate with employees: Clearly explain the new schedule, set expectations, and provide a forum for questions and concerns. 
  5. Pilot the schedule: Implement a trial, monitor the outcomes, and collect employee and supervisor feedback. Look at your employees’ productivity, satisfaction, and more.
  6. Monitor and adjust: To ensure the success of a compressed schedule, you should regularly solicit feedback after you’ve implemented it. This helps assess the new schedule’s impact on productivity and employee well-being.

💡 Pro Tip:

The beauty of compressed workweeks is their adaptability. Don’t feel confined to traditional models like the 9/80 or 4/10 schedule. You can customize them to meet your business and employee needs effectively. 

Tips for Successfully Managing a Compressed Schedule

Let’s discuss some strategies to ensure that the implementation of the compressed schedule goes smoothly.

  • Store information on the new schedule in an easy-to-access location, like a company knowledge base.
  • Use scheduling tools and apps to keep track of everyone’s hours and availability and manage compressed schedules effectively.
  • Monitor workloads to ensure they’re evenly distributed, preventing any team member from becoming overwhelmed.
  • Encourage employees to tackle high-priority tasks during their most productive times.
  • Promote regular breaks throughout the workday to help team members recharge and maintain productivity. Use a break management app like Connecteam to maintain full oversight of employees’ meal and break periods.
  • Hold regular feedback sessions to assess how the compressed schedule is working and make necessary adjustments. You can do this through surveys, 1:1 discussions or group sessions using communication tools.
  • Support employee well-being with activities or practices that help manage stress and fatigue. For example, provide access to wellness programs
  • Celebrate team wins to keep morale high and acknowledge the effective management of the new schedule.

💡 Pro Tip:

Use scheduling software to manage the complexities of a compressed workweek. For instance, Connecteam offers features to streamline scheduling, enhance communication, gather employee feedback through surveys, and boost morale through digital rewards and recognition.

An illustration showing Connecteam’s recognition and rewards interface

Which Industries Benefit from Compressed Schedules?

Compressed work schedules boost productivity and employee satisfaction across various sectors:

  • Corporate sectors, particularly office settings
  • Technology and IT
  • Healthcare (non-emergency roles)
  • Manufacturing and production
  • Government and public sector
  • Retail (management and backend operations)

Maximizing the Efficiency of Compressed Schedules

Compressed work schedules offer a flexible and efficient way to balance work and personal life. However, they come with challenges such as burnout, scheduling complexities, and reduced work-life quality.

To successfully adopt compressed schedules, carefully assess feasibility, and develop a clear implementation plan.

Finally, consider using employee scheduling software like Connecteam to create compressed schedules, track time and attendance, monitor scheduling conflicts, and get overtime alerts—all from one app.

The post What Is a Compressed Schedule? Examples, Pros, Cons, and Implementation appeared first on Connecteam.

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How to Create a 24-hour Shift Schedule: Types, Examples & Tips https://connecteam.com/e-24-hour-shift-schedule/ https://connecteam.com/e-24-hour-shift-schedule/#respond Thu, 30 May 2024 11:24:00 +0000 https://connecteam.com/?p=133795 If your business needs to operate around the clock, you must build a 24-hour shift schedule your employees are happy with and that’s effective for your business’s operations. Otherwise, you risk absenteeism, employee burnout, or lost productivity. In this guide, we explore common types of 24-hour work schedules. We also explain how to choose the...

The post 24-hour Shift Schedule: Types, Examples & Tips appeared first on Connecteam.

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If your business needs to operate around the clock, you must build a 24-hour shift schedule your employees are happy with and that’s effective for your business’s operations. Otherwise, you risk absenteeism, employee burnout, or lost productivity.

In this guide, we explore common types of 24-hour work schedules. We also explain how to choose the best schedule for your business and implement it.

Key Takeaways

  • 24-hour schedules involve teams of employees working across day and night or day, swing, and night shifts to provide 24/7 staffing.
  • There are many types of 24-hour schedules. Some of the most popular include 4 on 3 off, 4 on 4 off, 2-2-3, and DuPont schedules.
  • Choosing the best 24-hour schedule for your business requires balancing operational needs with employee needs.

What Is a 24-hour Shift Schedule?

A 24-hour schedule is a type of work schedule that enables your business to operate 24/7 with no breaks in staffing. Twenty-four-hour schedules are frequently used in industries like manufacturing, healthcare, transportation, and emergency services. A growing number of retail and customer service businesses also need 24/7 staffing.

Twenty-four-hour schedules typically require more complexity than just assigning employees to 24-hour shifts. Most employees can’t work 24 hours at a time without burning out.

So, round-the-clock work schedules usually involve several teams of employees working in shifts. Some schedules are split into 12-hour day and night shifts. Schedules that call for 8 or 10-hour shifts add a third morning shift or a “swing” shift that typically runs from early afternoon to late evening.

24/7 shift schedules must balance several competing factors, including:

  • Employees’ need for rest and work-life balance
  • Legal requirements
  • Overtime costs
  • Ability to manage workloads during peak hours
  • Schedule complexity, which can make managing employees more challenging

Fixed vs. Rotating Shifts

Most 24/7 work schedules are broken into shifts, and how you assign employees to these shifts is important. You can assign employees to the same shift consistently—a practice known as fixed shifts. Or you can rotate employees among shifts—a practice known as rotating shifts.

With fixed shifts, you’ll have some teams of employees that always work day shifts and other teams of employees that always work night shifts. Fixed shifts are simple to manage and give employees more consistent schedules. 

However, many businesses opt for rotating shift schedules because they’re more equitable for employees. With these, you don’t have 1 group of employees that always works coveted day shifts and another group of employees locked into less desirable night shifts.

In the shift patterns below, we highlight how you can rotate shifts to ensure each schedule is as fair as possible for employees.

📚 This Might Interest You:

Discover our guide on how to create a great rotating schedule.

Common Types of 24-hour Shift Patterns

Here are some of the most common types of 24-hour work schedules, plus their pros and cons.

4 on, 3 off shift pattern

How it works: Employees work 4 consecutive 10-hour days, then take 3 consecutive days off. Your schedule is broken into 3 shifts—typically, day, swing, and night shifts—and each team transitions from day to swing to night shifts on a weekly basis. The schedule resets after 3 weeks.

Typical shift length: 10 hours

Number of teams required: 6

Example:

Example of a 4 on, 3 off pattern for a 24-hour work schedule with different colors representing day, swing, or night shifts.

Pros:

  • Employees work the same days each week.
  • Employees work only 40 hours per week.
  • Teams’ work hours overlap, so they can share information easily.
  • Employees get a relatively long time off between work periods.

Cons:

  • Employees’ work hours change weekly, so keeping consistent personal schedules can be difficult.
  • Overlap between teams can lead to times when there isn’t enough for employees to do.

Best for: This is one of the most popular 24/7 shift schedules. It’s ideal for businesses that have times of peak demand, such as retail businesses that receive more traffic during morning and evening hours.

4 on, 4 off shift pattern

How it works: Employees work 4 consecutive 12-hour days, then take 4 consecutive days off. The schedule is broken into 2 shifts, typically day and night. Teams can switch between day and night shifts on any pattern you prefer, such as weekly, biweekly, or monthly.

Typical shift length: 12 hours

Number of teams required: 4

Example:

Example of a 4 on, 4 off pattern for a 24-hour work schedule with colors representing day or night shifts.

Pros:

  • Employees get lots of time off between work periods to rest.
  • There’s flexibility around how employees rotate between day and night shifts.
  • Employees’ work schedules have a degree of predictability.
  • The schedule requires just 4 teams.

Cons:

  • Teams’ work hours never overlap, so they can have difficulty sharing information.
  • Employees work 48 hours per week, so you must pay non-exempt employees overtime.
  • The days each employee works change each week, making personal planning more difficult.
  • Twelve-hour shifts can lead to increased burnout.

Best for: This is a good alternative to the 4-on, 3-off schedule for businesses with constant demand, such as many manufacturing companies. Since shifts are 12 hours long, it’s best suited for jobs that require intermittent work or less focus.

2-2-3 (Panama) shift pattern 

How it works: In a 2-2-3 shift pattern, employees work in a cycle consisting of 2 days on, 2 days off, 3 days on, and 3 days off. Shifts are typically 12 hours, so employees work 60 hours one week and 24 hours the next. Employees rotate from day to night shifts every 2 weeks.

Typical shift length: 12 hours

Number of teams required: 4

Example:

Example of a 2-2-3 or Pitman shift pattern for a 24-hour work schedule. Colors represent day or night shifts.

Pros:

  • Employees never work more than 36 hours between rest periods.
  • Increased rest periods help reduce employee burnout.
  • It requires just 4 teams.

Cons:

  • Sixty-hour workweeks can mean high overtime costs. 
  • Sixty-hour workweeks can be stressful for employees.
  • Employees work different days each week, making personal planning more difficult.

Best for: The Panama schedule can work well for businesses across various industries, including manufacturing, transportation, and food service. However, the schedule is complex and requires employees to be comfortable with long workweeks, so it works best for companies with strong communication between managers and employees.

🧠 Did You Know?

Another 24/7 schedule that closely resembles the 2-2-3 schedule is the 2-3-2 or Pitman schedule

DuPont Schedule

How it works: The DuPont schedule, named after the DuPont manufacturing company, is a 4-week schedule that requires 4 teams working 12-hour shifts. Teams alternate between day and night shifts each time they have a stretch of workdays.

In a 4-week period, one team’s schedule will look like this: 4 nights on, 3 off, 3 days on, 1 off, 3 nights on, 3 off, 4 days on, then 7 off. 

Typical shift length: 12 hours

Number of teams required: 4

Example:

Alt text: Example of a DuPont shift pattern for a 24-hour work schedule. Colors represent day or night shifts.

Pros:

  • It includes 1 off week in each 4-week cycle.
  • It requires only 4 teams.
  • The 4-week cycle is easy to manage.

Cons:

  • Employees work 72 hours during 1 week of the cycle,
  • Frequent day-night transitions can be difficult for employees,

Best for: The DuPont schedule was originally created for manufacturing plants, and it continues to be a good option for manufacturing businesses. It can also work well for any business that has consistent demand and is okay with 12-hour shifts.

Continental shift pattern

How it works: Employees work 6 consecutive 8-hour shifts, transitioning every 2 days from day to swing to night shifts. After 6 days on, they get 2 days off. The schedule resets every 8 weeks.

Typical shift length: 8 hours

Number of teams required: 3

Example:

Pros:

  • Pattern requires 3 teams only. 
  • The schedule might have reduced overtime costs compared to other schedules.
  • Employees work only 8 hours per day.

Cons:

  • Employees work 48 hours most weeks.
  • There’s shorter, less frequent rest compared to other schedules.
  • Shift rotation makes it difficult for employees to keep consistent personal schedules.

Best for: This schedule is a good option for businesses that need to operate 24/7 but have very variable demand between day, swing, and night shifts. Employees work a busy day shift for only 2 days before rotating onto a less busy swing shift and then a quiet night shift. 

24 on, 48 off shift pattern

How it works: This schedule doesn’t use shifts. Instead, employees work a full 24-hour day followed by 2 days off.

Typical shift length: 24 hours

Number of teams required: 3

Example:

Example of a 24 on, 48 off shift pattern for a 24-hour work schedule.

Pros:

  • It requires just 3 teams.
  • Employees get a long rest period after each 24-hour workday.
  • Employees’ schedules rotate each week, ensuring all employees get some weekends.

Cons:

  • Twenty-four-hour workdays can be highly demanding and aren’t suitable for many jobs.

Best for: The 24 on, 48 off shift pattern is widely used in emergency services since employees are working in spurts when emergencies strike rather than working continuously for 24 hours. This schedule can also be used to assign on-call duties for healthcare and customer service businesses.

6 on, 4 off shift pattern

How it works: Employees work 6 consecutive 10-hour shifts followed by 4 days off. There are morning, swing, and night shifts, and employees rotate onto a new shift for each 6-day work period. The cycle resets every 30 days.

Typical shift length: 10 hours

Number of teams required: 5

Example:

Example of a 6 on, 4 off shift pattern for a 24-hour work schedule. Colors represent day, swing, or night shifts. 

Pros:

  • The overlap between teams increases manpower during high-demand times.
  • The 30-day cycle means employees have consistent days off each month.
  • There are relatively long rest periods between work periods.

Cons:

  • It requires 5 teams.
  • Employees can work up to 60 hours in a week.
  • Employees work different days each week.
  • Shift overlap may not be helpful for businesses with consistent demand.

Best for: This schedule works well for many healthcare businesses since it enables teams to overlap between shifts and share information. It also gives employees several days off in a row, which can reduce burnout in high-stress jobs.

🧠 Did You Know?

If you want to learn how employees in different industries feel about specific shift patterns, Reddit is a goldmine. For instance, check out this subreddit to see how police cope with 6 on, 4 off shifts.  

5 on, 3 off shift pattern

How it works: This is a 25-day cycle in which employees work 10-hour shifts. Employees work 5 consecutive days, then get 3 days off. Then they work 5 consecutive days and get 4 days off. Finally they work 5 consecutive days and get 3 days off.

This pattern typically involves 3 shifts that overlap for 6 hours per day. Employees rotate between day, swing, and night shifts during each 5-day work period.

Typical shift length: 10 hours

Number of teams required: 5

Example:

Example of a 5 on, 3 off shift pattern for a 24-hour work schedule. Colors represent day, swing, or night shifts.

Pros:

  • Employees never work more than 5 days in a row.
  • Shifts overlap, offering extra manpower during high-demand periods.
  • It provides a relatively high number of days off in each cycle.
  • Rotating rest days enable all employees to have weekends off in each cycle.

Cons:

  • It requires 5 teams.
  • Shift overlap may be wasteful if your business has constant demand.
  • The 25-day cycle can be confusing since it doesn’t sync with calendar weeks or months.

Best for: This schedule is complex to manage, so it works best for businesses with highly responsible employees and excellent communication channels in place. It’s most suitable for healthcare, retail, and customer service businesses that can benefit from shift overlap.

6 on, 3 off shift pattern

How it works: Most employees work 6 consecutive 8-hour shifts followed by 3 days off. However, you also need a part-time team to fill in shifts 2-3 consecutive days each week. Your schedule is split into 3 shifts, and employees rotate shifts at the start of each new 6-day work period. 

Typical shift length: 8 hours

Number of teams required: 4.5

Example:

Example of a 6 on, 3 off shift pattern for a 24-hour work schedule, with colors representing day, swing, or night shifts.

Pros:

  • It requires full-time employees to work less hours per week than many other 24-hour schedules do.
  • Employees’ days off rotate, ensuring all employees have some weekends off.
  • It offers a good work-rest balance for many employees.

Cons:

  • There’s no overlap between shifts.
  • The part-time team may be less committed to your business.

Best for: This schedule isn’t frequently used because it requires a part-time team to fill in scheduling gaps. However, it offers more flexibility since you can ask part-time employees to fill in for full-time employees who are out sick or on vacation. It’s best suited for manufacturing or retail businesses because there’s no overlap between shifts.

3 on, 4 off shift pattern

How it works: This shift pattern requires employees to work 3 consecutive days of 12-hour shifts followed by 4 days off. Every 2 weeks, employees switch from day shifts to night shifts. Most shifts have 2 teams working simultaneously, but there are occasionally shifts with only 1 team or 3 teams.

Typical shift length: 12 hours

Number of teams required: 10

Example:

Example of a 3 on, 4 off shift pattern for a 24-hour work schedule. Colors represent day or night shifts.

Pros:

  • Employees work the same days each week.
  • Employees don’t have to work overtime.
  • It offers a high degree of rest between work periods.

Cons:

  • It requires 10 teams of employees.
  • Some shifts have 1 team while others have 2 or 3. 

Best for: This is an uncommonly used schedule because it requires 10 teams of employees and results in some understaffed and overstaffed shifts. However, it offers employees a predictable schedule and a very large amount of rest between shifts. So, it’s sometimes used in industries like oil and gas that involve highly demanding and dangerous work.

4 on, 6 off shift pattern

How it works: Employees work 4 consecutive days of 12-hour shifts followed by 6 days off. Most shifts have 1 team working, but there are several shifts each week staffed by 2 teams. Employees rotate between day and night shifts every 2 weeks.

Typical shift length: 12 hours

Number of teams required: 6

Example:

Example of a 4 on, 6 off shift pattern for a 24-hour work schedule. Colors represent day or night shifts.

Pros:

  • Employees must work 48 hours per week at most.
  • Employees’ days off rotate, ensuring all employees have some weekends off.
  • There’s a large amount of rest between work periods.

Cons:

  • Some shifts may be overstaffed each week.
  • It requires 6 teams.

Best for: This is an infrequently used schedule that’s best for high-intensity jobs where employees need lots of rest between work periods. For example, it can work well in the oil and gas industry.

5 Over 7 Shift Pattern for 24/5 Schedules

Some businesses in customer service operate on 24/5 schedules, offering round-the-clock service 5 days a week instead of 7. The most popular shift pattern for 24/5 staffing is called a 5 over 7 pattern.

How it works: A 5 over 7 schedule mimics the typical workweek in that employees work 5 consecutive 8-hour days, then get 2 days off. Twenty-four-hour days are split into 3 shifts, and employees rotate shifts weekly. 

Typical shift length: 8 hours

Number of teams required: 3

Example:

Example of a 5 over 7 shift pattern for a 24/5 work schedule, with 3 colors representing day, swing, or night shifts. 

Pros:

  • Employees work the same days each week.
  • It doesn’t require overtime.
  • It requires just 3 teams.

Cons:

  • There’s no overlap between shifts.

Best for: This schedule is widely used by customer service businesses. It’s equitable to employees and gives them consistent weekly schedules without requiring overtime. They might even get weekends off. 

What To Consider When Choosing a 24-hour Shift Schedule for Your Business

There’s a lot to think about when choosing the right 24-hour work schedule for your business. You must balance scheduling demands and employee morale, all while maintaining flexibility and keeping productivity as high as possible.

Here are several key things to consider when picking a shift pattern.

Shift overlap

One of the major differences between the shift patterns we highlighted is that some require teams to overlap for several hours a day, while others don’t. This is important because you need enough manpower to handle peak demand on your business, but you also don’t want to have employees standing around without enough to do.

In general, businesses in industries like healthcare, retail, customer service, and food service tend to have more ebbs and flows in how busy they are throughout the day and can benefit from shift overlap. Businesses with more constant demand, like manufacturing and transportation businesses, may prefer schedules without shift overlap.

Most industries and most states don’t have laws regulating how long employees can work. However, industries like commercial trucking have regulations limiting how long drivers can spend behind the wheel

In addition, states like California have rules requiring that employees approve alternative schedules that require shifts longer than 10 hours.

Make sure the schedule you choose follows all applicable regulations around allowable work hours. It’s a good idea to consult a labor attorney to ensure you don’t violate any regulations.

📚 This Might Interest You:

Check out our state labor law guides for more about regulations that may impact 24-hour scheduling.

Overtime pay

Paying overtime can be a necessary cost of 24/7 operations. However, it’s still important to think about how much you’ll spend on overtime pay with different shift patterns. Schedules that require non-exempt employees to work a maximum of 48 hours a week will generally cost less than schedules that require up to 60 hours per week.

📚 This Might Interest You:

Healthcare facilities may be able to reduce overtime pay with certain schedules—including the 6 on, 4 off schedule—by using an “8 and 80” system. Under this overtime scheme, employees are paid overtime when they work more than 8 hours in a day or exceed 80 hours in a 14-day period. 

Employee burnout

The type of work your employees do can also influence which shift pattern is best-suited for your business. Employees in high-stress roles, such as in healthcare settings, may need to work shorter shifts or fewer consecutive days in a row to avoid burnout.

Employees who work intermittently, such as on-call employees in emergency services, may be able to work 12 or 24-hour shifts without a problem. Employees in jobs that require more focus may not be able to work extended shifts safely or productively.

Schedule management

Schedules that reset on shorter cycles (such as every 3 weeks) are typically easier for you and your employees to manage than schedules that reset on longer cycles. This can improve employees’ work-life balance, since they’re able to coordinate with family and friends more easily.

Shorter, more predictable shift patterns also make it easier to manage employee absences due to sickness or vacation. Employees can fill in for colleagues or trade shifts without having to plan months into the future.

Number of teams

Shift patterns that require more teams (5 or more) can be significantly more complex to manage than shift patterns requiring fewer teams. If an employee takes time off, it can feel like a puzzle to figure out how to fill in for them without disrupting your entire schedule. You also have to hire and manage a greater number of individual employees, which can increase your business’s overall payroll and benefits costs.

Tips for Building an Effective 24-hour Shift Schedule

Here are 7 tips to ensure your 24-hour schedule is as effective as possible for your team.

Communicate with your employees

Communicate with your employees about the type of 24/7 schedule they prefer. Some employees might prefer more intense work periods followed by longer rest periods, while others might prefer working shorter shifts more frequently.

Employees might also have commitments outside of work that impact their ability to work different shifts. For example, employees with children might prefer working night shifts because they want to be able to take their kids to and from school.

🧠 Did You Know?

Connecteam makes it easy to survey your employees so you can ask them what shift schedule they prefer. You can also collect feedback from employees after implementing a new work schedule.

Balance skills and experience across teams

When building teams for your shifts, don’t just consider employee preferences—think about the skills and experience each employee will bring to a team. For example, each team should have a mix of newer employees and more veteran employees who can serve as mentors. Each team should also be staffed to fill all required roles for your operations, such as doctors, nurses, and administrators for a healthcare shift.

Transferring employees from one team to another can be disruptive to their schedules, so it’s important to minimize how frequently you need to do this. Consult your supervisors to find out which employees work well together and which should be assigned to different teams.

Use scheduling software

Shift scheduling software like Connecteam can make managing schedules much easier. You can create a schedule for one full cycle of your shift pattern, then use it as a template to create future schedules more quickly. In addition, scheduling software can alert you if a shift is understaffed or overstaffed or if a non-exempt employee is scheduled to work excess overtime.

Scheduling software is especially important for managing employee absences. For instance, Connecteam enables employees to trade shifts with your approval or pick up open shifts with or without your approval—so they can easily fill in for one another when needed.  

Set up shift reminders

It’s a good idea to set up automated shift reminders for your employees, especially if your schedule requires employees to work different days or shifts each week. Reminders can reduce missed work and ensure you’re always fully staffed.

🧠 Did You Know?

Connecteam can automatically send push notifications to employees’ phones to let them know they have a shift coming up. It also enables employees to quickly check their work schedule from any device.

Modify standard shift patterns

The shift schedules we highlighted are commonly used, but that doesn’t mean they’re set in stone. There are several ways you can consider modifying standard shift patterns to better suit your business:

  • Change how frequently employees rotate shifts: For example, instead of employees switching from day shifts to night shifts every week, they could rotate at the end of each shift pattern cycle. This gives employees more time to adjust to working nights.
  • Add more teams: Adding more teams gives you more flexibility to adjust to your business’s operational needs. For example, say your business is busiest during daytime hours but needs to provide 24/7 staffing. You could approach this by having 3 teams work on a 24/7 schedule and 1 team work on a standard 9-5 schedule. Employees could rotate between the 24/7 schedule and 9-5 schedule
  • Double your teams: You can increase flexibility and give employees a chance to work with different colleagues by creating twice as many teams as a shift pattern requires. For example, you could use the 4 on, 4 off shift pattern with 8 teams instead of 4. The rate at which teams rotate from day to night shifts could vary, so Team A would sometimes work with Team E and sometimes with Team F.

🧠 Did You Know?

Walmart is an example of a company that’s modified standard 24/7 schedules. It introduced what it calls “core hours.” Employees who have a core hours schedule work the same shift for at least 13 weeks, giving them greater ability to plan their personal lives. They can also easily swap shifts and self-schedule extra shifts for added flexibility.

Offer incentives for unpopular shifts

If you offer fixed shifts, consider offering higher pay for more difficult or less popular shifts. For example, say you run a manufacturing business with steady work across 3 shifts. In this case, the swing and night shifts are likely to be more of a burden on employees than day shifts, so you could offer a higher pay rate for employees working these shifts. 

This can make it easier to hire and retain employees for less popular shifts. Otherwise, you risk losing employees from your night shift anytime a job opens for a competitor’s day shift.

Higher pay for undesirable shifts also encourages your employees to fill in open shifts on nights and weekends. Without incentives, finding someone who’s willing to take an extra shift for an employee who calls in sick for a night shift can be difficult. 

Use data to evaluate your schedule

After you implement a new work schedule, be sure to track data so you can evaluate whether it’s effective. You can monitor productivity metrics as well as send out monthly employee satisfaction surveys. In your surveys, be sure to ask employees about their work-life balance, focus at work, and whether they feel sufficiently rested when they return to work after a break period.

You should also make a note of any changes in employee retention or your company’s ability to hire new employees. If you suspect that your schedule is encouraging employees to leave, ask about this in your exit interviews.

🧠 Did You Know?

Connecteam offers in-depth reporting tools to help you monitor absences, overtime, breaks, and more. You can use this information to determine if your schedule is working for you and your team.

Conclusion

Building an effective 24/7 shift schedule can enable your business to operate around-the-clock while reducing the risk of employee burnout and limiting your overtime costs.

There are many different 24-hour work patterns to choose from with different shift lengths and configurations to meet the needs of different businesses. When deciding which one is right for your business, consult your employees and personalize your schedule to suit your business.

Once you choose a schedule, you can use Connecteam to put it into practice, send shift reminders to employees, and enable employees to pick up open shifts.

Get started with Connecteam for free today!

FAQs

24-hour shift schedules are legal in most states. However, there are some industries, like trucking, that limit how many hours employees can work in a set period of time. In addition, California requires that employees approve alternative schedules requiring shifts longer than 10 hours. It’s a good idea to consult a labor attorney to ensure your schedule follows all applicable regulations.

Can employees work 24-hour shifts?

Employees are legally allowed to work 24-hour shifts in most industries. However, 24-hour shifts can be exhausting, so they’re best suited for jobs that require intermittent work or for employees who are on call. A 24 on, 48 off shift schedule is commonly used for emergency services.

What is the best 24-hour shift schedule for manufacturing?

There are many different 24-hour work schedules that manufacturing businesses can use. Some of the most common include 4 on 4 off, DuPont, and 2-2-3 shift patterns. These patterns don’t overlap shifts, which is nice since operational demands are very consistent at most manufacturing companies.

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Understanding Different Types of Nurse Schedules: Pros & Cons https://connecteam.com/e-nurse-schedules/ https://connecteam.com/e-nurse-schedules/#respond Thu, 30 May 2024 08:10:00 +0000 https://connecteam.com/?p=133789 Nursing is a demanding profession with schedules that vary by facility and job demands. Let’s explore different types of nurse schedules, plus their pros and cons. Managing nursing schedules involves balancing efficiency and staff wellness—often with the need for around-the-clock coverage. Ineffective scheduling can lead to nurse burnout, compromised patient care, and more. There are...

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Nursing is a demanding profession with schedules that vary by facility and job demands. Let’s explore different types of nurse schedules, plus their pros and cons.

Managing nursing schedules involves balancing efficiency and staff wellness—often with the need for around-the-clock coverage.

Ineffective scheduling can lead to nurse burnout, compromised patient care, and more.

There are various nursing schedules, each with pros and cons. Below, we examine these to help you find the most suitable arrangement for your needs.

Key Takeaways

  • Nurse schedules include fixed, rotating, on-call, PRN, and Baylor schedules. Each offers unique benefits and challenges.
  • Effective nursing schedule management is crucial for balancing the intense demands of healthcare with staff well-being.
  • Tips for implementing nursing schedules include giving your nurses a voice in their schedules and using effective scheduling software.

What Are the Different Types of Nursing Schedules?

Nursing schedules vary widely to meet the demands of different healthcare environments. In private practices or clinics, nurses might work standard 8:00 am-5:00 pm workweeks. For hospitals and other round-the-clock care facilities, common schedules include shifts of five 8-hour days, four 10-hour days, or three 12-hour days per week. 

Additionally, some nurses may work rotating shifts, be on call, work as needed (PRN), follow seasonal schedules, cover weekends through Baylor shifts, or schedule their own shifts. 

How Many Days Do Nurses Work?

The number of days nurses work per week varies depending on the type of schedule and shift pattern their employer uses.

Commonly, nurses work 3-5 days per week across all days of the week. 

1. Nursing Schedules Based on Shift Length

Five 8-hour workdays/shifts

MondayTuesdayWednesdayThursdayFridaySaturdaySunday
7am-3pm7am-3pm7am-3pm7am-3pm7am-3pmOffOff
5 days * 8 hours = 40 hours/week + 2 days off

While nurses in private practices most commonly work five 8-hour days following a conventional Monday-Friday schedule, other nurses—including hospital nurses—also sometimes work five 8-hour shifts a week. 

Pros and cons:

  • Predictable coverage ensures consistent staffing throughout the week, simplifying scheduling and operations.
  • Some nurses might prefer the shorter shifts, potentially improving job satisfaction and retention.
  • The increased commuting frequency for nurses might negatively impact their job satisfaction.
  • In 24/7 settings, frequent shift changes can lead to more handovers, potentially affecting communication and patient care.

One student nurse said, “I prefer 8 hours. Yes, it takes up 5 days of my week but it’s a week pattern I’m used to. If I’m on earlies, it means I finish at 3.15 and still have time to do other things like book appointments after 3.” 

🏥 Suitable for: This pattern is prevalent in private practices, outpatient settings, and some hospitals.

Four 10-hour shifts

TeamMonTueWedThuFriSatSun
AOffMorning7am-5pmMorning7am-5pmMorning7am-5pmDay7am-5pm OffOff
BNoon12pm-10pmOffOffOffDay7am-5pmDay7am-5pmDay7am-5pm
COffNoon12pm-10pmNoon12pm-10pmNoon12pm-10pmNoon12pm-10pmOff Off
4 days * 10 hours = 40 hours/week + 3 days off

Four 10-hour shifts—a type of compressed workweek—provides nurses with an extra day off compared to the traditional 5-day workweek while still giving them standard full-time hours. Employers that use this shift pattern often have multiple teams of nurses to provide coverage.

Pros and cons:

  • These shifts provide extended daily coverage with fewer days worked, improving operational efficiency.
  • Longer shifts allow for more days off, which can enhance staff work-life balance and reduce burnout.
  • Longer hours can lead to increased fatigue, potentially affecting performance and patient care.
  • In 24/7 settings, 10-hour shifts are more difficult to coordinate than 8 or 12-hour shifts because they don’t align neatly with the 24-hour day. The schedules often require 6 teams to ensure 24/7 coverage.

🏥 Suitable for: These shift schedules allowing for longer but fewer working days in settings that require extended daily operations but not 24/7 coverage, like some specialized clinics or surgical centers. Some 24/7 settings might use this schedule for around-the-clock coverage.

Three 12-hour shifts

TeamMonTueWedThuFriSatSun
ADay7am-7pm Day7am-7pmDay7am-7pmOffOffOffOff
BNight7pm-7am Night7pm-7amNight7pm-7amOffOffOffOff
3 days * 12 hours = 36 hours/week + 4 days off

A typical nurse schedule is three 12-hour shifts per week. It’s most popular in hospitals and other acute care settings. This schedule allows nurses to work 3 days a week and get 4 days off—for example, by working Monday-Wednesday and getting Thursday-Sunday off.

The 24-hour day is often divided into 2 or three 12-hour shifts, for example:

  • Day shift: 7:00 am – 7:00 pm
  • Night shift: 7:00 pm – 7:00 am
  • Swing shift: 1:00 am – 11:00 pm

Oftentimes, nurses will work 3 consecutive shifts followed by 4 consecutive days off.

🧠 Did You Know?

Since nurses working these schedules work just 36 hours per week, some hospitals require them to add an 8-hour shift split between 2 weeks to meet the typical 40-hour workweek.

Pros and cons:

  • These shifts provide comprehensive daily coverage with fewer days worked, enhancing operational efficiency.
  • More consecutive days off can improve your nurse’s work-life balance and job satisfaction.
  • Long shifts can lead to increased fatigue, potentially impacting performance and patient care quality.
  • Trying to cover absences or ensuring that all shifts are staffed appropriately—without causing overtime or overwork for other staff members—can be difficult.

One nurse wrote: I hate [12-hour shifts]. I’m just so tired by the end of it all. And with my kids, I feel like I barely am home and I need to do the bedtime grind and don’t get any time with them. Even getting home an hour earlier helps. It’s just not enough of a break for me. I have difficulty sleeping already. I just cannot.

🏥 Suitable for: Twelve-hour shifts are common in hospitals, especially in intensive care and emergency departments. These offer nurses more days off and continuity of care with fewer handovers.

📚 This Might Interest You:

Read our in-depth guide on different types of 24-hour shift schedules.

2. Nursing Schedules Based on Flexibility Needs

Rotating schedules

Rotating shift schedules are often used for continuous 24/7 coverage in healthcare. They involve nurses alternating between day, evening, and night shifts. The schedule’s frequency and rotation period—whether weekly, biweekly, or monthly—vary by the facility’s specific needs and staffing policies. This ensures operational flexibility and meets varying patient care demands.

Examples:

  • Weekly rotation: Nurses switch from day shifts in one week to night shifts in the next. For example, a nurse might work 7:00 am-7:00 pm shifts for one week and then switch to 7:00 pm-7:00 am shifts the following week.
  • Biweekly or monthly rotation: This allows for nurses to spend a more extended period on one shift before switching, potentially easing the burden of frequent adjustments. A nurse could work day shifts for 2 weeks or a month and then rotate to night shifts for the same duration.

Types of rotating nursing schedules 

  • Dupont schedule: Four teams each work 12-hour shifts (day and night). For example, Team A works 4 nights on, 3 off, 3 days on, 1 off, 3 nights on, 3 off, 4 days on, and 7 off. 
  • Pitman schedule: Four teams each stick to either day or night shifts throughout a 2-week cycle (fixed). Or, they alternated between day and night shifts over 2 weeks (rotating). For example, Team A works 2 day shifts, has 2 days off, works 3 day shifts, and then switches to nights in the next cycle.
  • Panama schedule: Four teams each cycle through a series of 2 days on, 2 days off, 3 days on, 2 days off, and so on.
  • DDNNOO (4 on, 4 off) schedule: Teams work 4 nights followed by 4 nights off, then switch to 4 days followed by 4 days off.

Pros and cons:

  • Rotating shifts broaden nurses’ skills by exposing them to various care dynamics at different times.
  • They ensure fair distribution of less desirable shifts, promoting fairness among staff.
  • Frequent changes in work hours can disrupt natural cycles, potentially leading to sleep disorders and other health issues.
  • Constant shift changes can increase stress and mental exhaustion, affecting nurses’ job performance and overall well-being.

🏥 Suitable for: Rotating shifts are often used in facilities that operate 24/7—like hospitals or emergency services—to distribute the burden of night and weekend work among all staff.

📚 This Might Interest You:

Read our in-depth guide on creating a rotating schedule.

Seasonal schedules

Seasonal scheduling is tailored to meet the fluctuating demands of healthcare facilities based on certain times of the year. 

Seasonal nursing schedules can vary depending on the facility and the specific demands of the season. Typically, these might include:

  • Extended hours: Nurses might work longer shifts during peak seasons to accommodate the increase in patients.
  • Increased shift frequency: During busy periods, nurses might work more consecutive days before a break—such as 6 days on followed by 1 day off.
  • Rotating shifts: To cover all hours, especially in urgent care or tourist areas, nurses might rotate through day, evening, and night shifts more frequently during the high season.

Pros and cons:

  • Ensures optimal staffing during peak times, improving patient care and operational efficiency.
  • Can reduce labor costs during off-peak times, aligning payroll with actual service needs.
  • Requires careful planning and forecasting to avoid understaffing or overstaffing issues.
  • Potentially increases the administrative burden to adjust schedules and contracts based on seasonal demand.

🏥 Suitable for: This schedule is used in regions with significant seasonal population changes, such as tourist destinations, or in areas with specific seasonal health challenges—like flu season.

Baylor schedules

With Baylor schedules, nurses typically work 12-hour shifts for 2 days (a total 24 hours) during the weekend. Oftentimes, they receive full-time pay (i.e., pay for 36-40 hours).

The exact format of Baylor nursing shifts can vary by hospital. It could be two 12-hour night shifts or 1 day and 1 night shift.

Pros and cons:

  • Provides extended weekend coverage, allowing for consistent patient care while offering nurses full-time pay for part-time hours.
  • Can improve nurse retention by offering a desirable work schedule with more days off during the week.
  • Might be costlier compared to other scheduling options.
  • Can potentially increase fatigue among weekend staff, which can affect performance and patient care quality.

🏥 Suitable for: This shift pattern is suitable for settings where weekend coverage is critical, such as in hospitals or residential care facilities. 

Self-made schedules

Self-scheduling is becoming increasingly common in the nursing profession. Nurses are given the ability to choose their shifts within certain constraints set by their healthcare facilities.

Pros and cons: 

  • This approach gives nurses more control over their work schedules, helping to improve job satisfaction, work-life balance, and retention rates. 
  • Without proper oversight, self-scheduling can lead to conflicts or imbalances, where some shifts may be overstaffed and others understaffed.

🏥 Suitable for: Self-scheduling can be useful in less acute care settings like outpatient clinics, where the pace can be more predictable and less hectic than in inpatient care.

On-call schedules

Nurses on on-call schedules typically aren’t required at the workplace but must be available to come in on short notice if needed. This is common in specialties where the patient needs can be unpredictable, such as surgery or labor and delivery.

Pros and cons:

  • On-call staff can help facilities meet unpredictable patient demand, ensuring coverage during peak times.
  • Managing on-call schedules requires careful planning to avoid overburdening staff and ensuring fair distribution of shifts.

PRN schedules

PRN comes from the Latin term “pre re neta,” meaning “as needed.” PRN nurses work irregular hours based on the facility’s needs and don’t have a set schedule

They fill in for absent staff, cover additional shifts during high patient volumes, or handle special situations that require more hands.

Pros and cons:

  • With PRN staff, you gain the flexibility to adjust workforce levels responsively as patient needs change—without the cost of added full-time employees.
  • The limited availability of PRN nurses can lead to staffing shortages during high demand.

4. Nursing Schedules Based on Specialized Roles

Specialized nursing roles often have distinct schedules. Here are some examples:

  • Travel nurses’ schedules vary widely, with assignments lasting from a few weeks to several months in various locations.
  • School nurses and nurse educators’ schedules typically align with the academic calendar, and nurses work school-based hours (e.g., 7:00 am to 3:00 pm).
  • Certified registered nurse anesthetists (CRNAs) are often on call. They follow surgical schedules, and their hours are highly variable.
  • Outpatient nurses usually work four 10-hour shifts per week, providing consistent daily hours.
  • Surgery nurses commonly work four 10-hour shifts that align closely with surgery schedules.
  • Nurse managers and nurse case managers often follow a standard Monday-Friday, 8:00 am-5:00 pm schedule.
  • Telehealth nurses often have flexible schedules that can vary from part-time to full-time hours, sometimes requiring weekend or evening shifts depending on patient needs.
  • In-home nursing care nurses can have highly variable schedules. They might also have on-call hours depending on patient care requirements.

Tips for Managing Nursing Schedules Effectively

Managing nurses’ schedules efficiently is crucial for maintaining a functional healthcare environment and supporting staff well-being and patient care.

Here are some tips for managers to effectively handle nursing schedules:

Assess staff needs. Consider your nurses’ personal life commitments, such as family, education, or hobbies. Some may prefer regular daytime hours, while others might find night shifts more compatible with their personal lives or prefer the higher pay that comes with shift differentials.

Give your nursing team a voice in their schedules. For example, self-scheduling lets nurses choose hours that work best for them, boosting satisfaction and reducing turnover. Consider diverse scheduling options like 12-hour nursing shifts or part-time roles to meet varied needs.

Consider health and wellness. Evaluate how different schedules might impact your nurses’ physical and mental health. For instance, some may find rotating shifts disruptive to their sleep patterns and overall health, while others might thrive on the dynamic nature of such schedules.

Streamline everything with advanced nurse scheduling tools. Good nurse scheduling software helps you prevent scheduling conflicts, distribute shifts fairly, and manage time-off requests smoothly.

Keep the communication lines open. Use face-to-face meetings or digital platforms to provide regular updates on the schedule and solicit feedback. Use staff feedback to refine your schedule. 

Always have a backup plan. Whether you’re dealing with a sudden sick call or emergency, having on-call or PRN staff ensures you’re prepared and won’t overload your regular team.

Show appreciation for your nurses’ hard work, especially those covering challenging shifts. Rewards or incentives for night and weekend shifts can lift morale.

Keep an eye on work hours and signs of burnout. These might include increased absences or a change in attitude or energy. Check in with nurses at risk of burnout to come up with solutions. 

Offer continuous training to make sure everyone is up to speed with your scheduling tools and policies. This ensures smooth operations and empowers your staff.

Aim for a good balance between operational needs and personal lives. Accommodating personal requests when possible—including time-off requests and schedule change requests—can help retain staff without compromising care quality.

Experiment when possible. If your workplace allows, experiment with different schedules to find what works best for your team.

🧠 Did You Know?

Connecteam is an all-in-one scheduling app that simplifies nurse scheduling with features like hassle-free schedule creation, open shifts for self-scheduling, and easy shift swaps. Nurses can manage their schedules and availability right from their mobile devices.

Bottom Line on Nurse Schedules

Nursing is a challenging profession requiring schedules tailored to specific facility needs and work demands.

Various scheduling types—like rotating, and Baylor, and 10-hour shift schedules—have their pros and cons. You must carefully consider your team’s preferences and requirements to find what suits you best. 

To effectively manage a nursing schedule, consider using healthcare management workforce software like Connecteam. It simplifies nurse scheduling with features like mobile accessibility, easy shift creation and swapping, and a team chat—plus tons of other features for supporting your nurses.

Curious to learn more? Try Connecteam for free today.

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