averageovertime

Average overtime is a statistical measure that represents the mean number of overtime hours worked by employees in a defined group during a specified period. It is commonly expressed as hours of overtime per employee per week, or as total overtime hours divided among employees over a period. The concept is used to summarize workload, staffing adequacy, and labor costs.

Calculation: For a given period, add up all overtime hours recorded for all employees and divide by the number of employees. When aggregating over multiple weeks, divide total overtime hours by (employees × weeks) to obtain a weekly average. Overtime typically refers to hours worked beyond the standard work time, which varies by country or sector (for example, a 40-hour week in many jurisdictions).

Applications: Average overtime helps managers plan staffing, forecast payroll costs, and monitor compliance with labor laws. Higher averages can indicate peak demand, skill shortages, or insufficient scheduling. It can also reflect project-phase dynamics, seasonal work, or cross-functional load balancing.

Limitations and context: Definitions of overtime, standard workweeks, and exemption rules differ across countries and businesses. Data sources (payroll systems, time-tracking software, or surveys) may yield inconsistent figures. Overtime hours do not capture intensity of work or productivity, and part-time or flexible arrangements can affect interpretation.

Example: If five employees log 2, 0, 3, 1, and 4 overtime hours in a week, the average overtime is (2+0+3+1+4)/5 = 2 hours per employee per week.

See also: Overtime pay, standard workweek, labor statistics, workforce planning.