Blog 08 : Overtime in the Banking Sector: Opportunities and Challenges for HR
Introduction
Some of the common reasons for extended hours of
working in the banking sector include tight deadlines, customer demands, and
regulatory requirements. It is obvious that a heavy workload helps
organizational goals be met through overtime working hours, but excessive work
hours can be harmful and lead to stress, burnout, and low productivity.
According to Armstrong (2020), from the HRM viewpoint, overtime needs to be
managed so as not to impair the wellbeing of employees and also not hamper
operational efficiency.
The human resource management in banks needs to create a proper balance between the demands of the organization and the welfare of their employees. Overtime policy is one essential element of striking this balance by regulating work hours, ensuring fairness in compensation, and preventing the fatigue of the workforce. Dessler (2019) suggests that the HR department can offer a structured approach to overtime policies to keep a check on excessive work hours and closely monitor workload allocation to prevent employee burnout.
Training and development programs also contribute to
ensuring that employees work efficiently and do not have to work overtime. In
this regard, HR equips the staff with relevant skills and knowledge, thus
increasing productivity with minimal extended hours of work, as noted by Becker
& Huselid 2006. Additionally, HR can utilize technology like workforce
management software to forecast high workload periods and allocate resources
accordingly.
Overtime management is closely tied to employee
engagement and motivation. Long hours, if not appreciated or compensated,
dampen morale and lead to turnover. HR can maintain motivation while meeting
organizational needs through flexible scheduling, compensatory leave, or
incentives for overtime worked.
Advantages of Overtime
from an HRM Perspective:
1.
Increased Productivity: Employees can complete urgent
tasks, helping banks meet tight deadlines.
2.
Financial Incentives: Overtime pay motivates employees
and rewards extra effort (Becker & Huselid, 2006).
3.
Flexibility for Peak Workloads: OT allows HR to handle
seasonal or unexpected surges without hiring temporary staff.
Disadvantages of Overtime from an HRM Perspective:
1.
Employee Burnout: Prolonged work hours can reduce mental
and physical wellbeing, lowering engagement.
2.
Higher Turnover: Overworked employees may seek jobs with
better work-life balance (Mathis & Jackson, 2020).
3.
Reduced Productivity Long-Term: Continuous OT can lead to
errors, absenteeism, and decreased overall efficiency.
HR departments can mitigate disadvantages by
offering flexible schedules, compensatory leave, and wellness programs.
Training and technology can also enhance efficiency, reducing reliance on
excessive OT hours.
Conclusion
Effective management of overtime hours is a
strategic HR function in banking. Clear policies, training, and recognition of
employee effort can help the HR department ensure employee well-being, sustain
productivity, and minimize attrition. Meeting organizational needs with
human-oriented practices will ensure sustainability of growth in competitive
banking.
References
1.Armstrong, M.
(2020) Armstrong’s Handbook of Human Resource Management Practice.
15th edn. London: Kogan Page.
2.Becker, B. and Huselid, M. (2006) Strategic
Human Resources Management: Where Do We Go From Here? Journal of Management, 32(6),
pp.898–925.
3.Dessler, G. (2019) Human Resource
Management. 15th edn. New York: Pearson.
4.Mathis, R.L. and
Jackson, J.H. (2020) Human Resource Management. 16th edn. Boston: Cengage Learning.
Student ID- 25026307
With a focus on balancing short-term productivity gains against burnout and turnover risks, this article provides a strategic HRM function for managing overtime in banking. In order to balance operational demands with employee well-being and efficiency, it rightly promotes clear policies, the use of technology for workload forecasting, and the provision of compensatory incentives.
ReplyDeleteAs you noted, sustainable productivity in banking depends on HR’s ability to balance short-term efficiency with long term well being. Leveraging technology and structured policies ensures that performance goals do not come at the cost of burnout. Thank you for adding such valuable perspective.
DeleteThis topic is of immense relevance and carries meaning. Workplace safety and gender protection are considered the inherent responsibilities of any organization. When these systems fail, it affects the culture, reputation, and overall performance of the organization, beyond the individuals concerned. Now, the role of HR in Sri Lanka is to further strengthen these policies, make sure that their enforcement is strict, and create a culture of respect and accountability for making the workplace truly safe and inclusive.
ReplyDeleteThank you for your valuable feedback. You have rightly emphasized that workplace safety and gender inclusion extend beyond compliance, shaping the very foundation of organizational reputation and performance.
DeleteThis blog shows a clear analysis of how the banking sector employees manage the overtime working by balancing the mental health and organizational productivity. You have pointed out the advantages too. This is the truth behind the employees' and process needs of the Sri Lankan banking sector's employees. However, HR strategies emphasized how important the strong understanding of HR practices is.
ReplyDeleteI highly appreciate your feedback. Your reflection emphasizes the importance of effective HR practices in supporting employee well being while maintaining organizational efficiency.
DeleteGood explanation of overtime pressures and employee well-being in the banking sector. You highlighted both operational benefits and negative impacts well. Including citations from labour law or HRM research, and perhaps a local case example, would strengthen the academic depth.
ReplyDeleteThank you for your constructive feedback. I appreciate your recognition of the discussion on overtime pressures and well-being, and your suggestion to include citations and local examples is very valuable.
DeleteI appreciate how the post highlights both the opportunities and the challenges of overtime. From an HR perspective, overtime isn’t just about paying extra hours it’s also about managing motivation, performance, and mental health. Regular check-ins and open communication could help HR detect early signs of fatigue.
ReplyDeleteThank you so much for your feedback. Your emphasis on communication and monitoring employee well being aligns closely with the blog’s focus on HR strategies for managing overtime.
DeleteYour blog is informative, academically grounded, and well-structured. It successfully highlights the dual nature of overtime in banking and the strategic role HR plays in balancing productivity with employee welfare. With minor language polishing, additional examples, and slight elaboration on HR mitigation strategies, it would be highly professional and publication-ready.
ReplyDeleteI really appreciate your detailed comment. It is great to know that the points about balancing productivity and employee welfare resonated with you. I will take your suggestions on language, examples, and HR strategies into account to further improve the blog.
DeleteReading this article on overtime in banking really resonated with me as someone from the hospitality industry. Just like banks, hotels often face peak workloads driven by guest demands, seasonal surges, and regulatory standards. While overtime can help us deliver on urgent needs, I’ve seen firsthand how unchecked long hours can drain energy, dampen morale, and eventually affect service quality. What struck me most in your article is the emphasis on HR balancing organizational goals with employee wellbeing—this is equally critical in hospitality, where guest satisfaction depends directly on the motivation and health of our staff. Flexible scheduling, fair compensation, and recognition of extra effort are not just HR policies; they are the backbone of sustainable service cultures. Your insights remind me that whether in banking or hotels, overtime management is ultimately about respecting people while meeting business demands
ReplyDeleteThank you for your comment. I agree that managing overtime is important in both banking and hospitality. Balancing business needs with employee well being through fair scheduling, recognition, and support helps maintain motivation, service quality, and a healthy workplace culture.
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