Overtime has always played a large role in how hiring managers and recruiters handle filling an open position, however, with the recent news regarding the new regulations governing overtime pay, some businesses are considering the impact it will play on their overall business. How will this rule affect your businesses recruiting efforts?
Even with the overtime rule being suspended for now, many hiring managers and recruiters are concerned about the lasting effects this will have on their hiring process. Reduction in external hiring, decreased internal promotions, and loss of benefits will most likely be experienced in many positions across the medical care field.
When the rule change was first announced, many businesses were left to quickly determine which workers and positions this would affect, and try to implement some creative measures to handle the change. Here are a few options seen in the industry:
- Many hiring managers have reclassified their exempt salary employees to hourly employees to help offset the cost.
- Readjust or separate job duties to allow for less overtime. Many position duties will be moved to higher-paid exempt employees, or moved to different shifts to accommodate this change.
- Adjusting current exempt employee salary to the new threshold could be more cost effective for the business and give an employee a well-deserved increase in pay.
Due to the change in the overtime rule, many hiring managers were forced to review and change many of their open positions, following the options above. This has led to a decrease in candidates applying for open positions. So now, a new challenge has arisen for hiring managers and recruiters – they must sell previously salaried positions with new hourly rates, by offering perks and extra goodies that might be interesting to a candidate.
Even though the overtime rule has been suspended for now, do not overlook how you will handle your recruiting efforts, if and when, this overtime rule takes place. The risk of financial exposure if real for your business, as well as, a lack of job candidates.
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