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Overtime work on the rise in New Zealand with a nearly a third of it unpaid

07 November 2023

Overtime increased in 34% of organisations across New Zealand last financial year, according to survey research by Hays. At the same time, only 7% of organisations decreased overtime work. The survey by Hays found that overtime was unpaid in 30% of organisations, while 25% rewarded staff non-financially, such as with time off in lieu. The final 45% paid staff for overtime.

Of the organisations that increased overtime, 32% did so by five hours per week on average. Another 33% increased overtime between six and ten hours per week. Furthermore, Hays found that 66% of employers said the skills shortage has led to increased workloads for existing staff.

Of those professionals who are currently looking or planning to look for a new role this financial year, 24% cite poor work-life balance as a motivating factor and 18% cite the negative mental health and wellbeing impacts of their current role.

“In recent times, it’s clear there has been an increase in the number of organisations requiring employees to work overtime,” said David Trollope, managing director of Hays in New Zealand. “While a reasonable level of overtime may be expected in certain roles and industries, it should never become excessive.”

“Excessive overtime can negatively impact employees’ physical and mental health and wellbeing,” Trollope said. “It can lead to stress and burnout, and adversely affect work-life balance, job satisfaction, productivity and staff turnover. Unfortunately, perceptions of what constitutes ‘excessive’ overtime can vary from person to person. As a result, overtime expectations differ between organisations.”