How to Reduce Overtime Without Sacrificing Throughput

Overtime has become a common solution to short-term staffing gaps or production surges, but in the long run, it can result in escalating cost overruns. The good news is that overtime can be reduced without affecting output.

Many manufacturers are finding ways to maintain or even improve throughput by focusing on workforce planning, scheduling strategies, skills development and workforce flexibility rather than simply adding more hours to the workweek.

Why Is Overtime Becoming a Bigger Challenge for Manufacturers?

Manufacturers are under constant pressure to produce more with fewer resources. Labor shortages, fluctuating demand, retirements and growing customer expectations have made overtime a common solution to production challenges.

According to the U.S. Bureau of Labor Statistics:

Manufacturing employees averaged 3.8 hours of overtime per week in 2025.

Some sectors experience significantly higher levels, such as transportation equipment manufacturers, whose employees averaged 5.3 overtime hours per week.

What Causes Manufacturing Overtime?

Most overtime problems are symptoms of larger workforce and operational challenges.

Common causes include:

1. High turnover

In a report from the UKG Workforce Institute:

41% of manufacturers reported a front line turnover rate of 20% or more.

2. Skilled labor shortages

According to the ManpowerGroup Talent Shortage report:

75% of manufacturers report difficulty finding skilled talent.

3. Sudden increases in customer demand

Unexpected spikes in orders can quickly outpace available staffing levels, forcing manufacturers to rely on overtime to meet production targets.

4. Poor production forecasting

Failure to anticipate spikes in demand can leave organizations understaffed during busy periods, creating labor shortages that often result in unplanned overtime.

5. Absenteeism

This is a widespread problem with a variety of root causes. According to the UKG Workforce Institute:

49% of U.S. manufacturers say employees call out with less than 24 hours’ notice once a week or more.

6. Limited workforce flexibility

When employees have specialized skills or are restricted to specific roles, shifts, or production lines, managers have fewer options for covering staffing gaps without assigning overtime.

The first step toward reducing overtime is identifying whether the issue is truly labor availability, scheduling, skills coverage or production planning.

Improve Workforce Planning Before Overtime Becomes Necessary

One of the most effective ways to reduce overtime begins long before a shift starts.

Many organizations focus on meeting this week's production targets but spend less time analyzing workforce requirements 30, 60 or 90 days ahead. Strong workforce planning helps manufacturers anticipate labor needs before staffing shortages impact production.

Manufacturers can reduce overtime by:

• Forecasting labor needs alongside production forecasts
• Tracking historical overtime trends
• Identifying recurring staffing shortages
• Planning for seasonal surges
• Accounting for vacations, retirements and turnover

Better forecasting also helps determine when supplemental labor may be needed before overtime costs begin to climb.

Instead of reacting to labor shortages, proactive workforce planning allows organizations to prevent them.

Cross-Train Employees to Eliminate Skills Bottlenecks

A common reason for overtime is that only a small group of employees possess critical skills.

If a skilled machine operator, maintenance technician or quality specialist is absent, supervisors often have no choice but to assign overtime to qualified workers.

Cross-training helps solve this problem by creating greater workforce flexibility.

Organizations that invest in cross-training can:

• Increase staffing flexibility across shifts
• Reduce downtime caused by absences
• Improve production continuity
• Build stronger internal talent pipelines
• Reduce reliance on a small number of experienced employees

Cross-training is especially important for manufacturers facing retirement-driven workforce changes. As experienced employees leave the workforce, organizations need systems that transfer knowledge and spread critical skills across teams.

Ultimately, flexibility comes from skills depth, not simply headcount.

Use Smarter Scheduling Instead of Longer Hours

Reducing overtime is often less about staffing levels and more about how labor is scheduled.

Many manufacturers are moving away from rigid scheduling models and adopting more flexible approaches that maintain coverage while improving employee satisfaction.

Compressed Workweeks

Four 10-hour shifts can reduce commuting time, improve work-life balance and help employers attract workers seeking greater flexibility.

Staggered Start Times

Adjusting start times allows organizations to align labor more closely with production demand throughout the day.

Structured Shift Swapping

Employees can trade shifts within established guidelines, reducing last-minute call-offs and scheduling conflicts while maintaining coverage.

Supplemental Shift Coverage

Part-time employees, temporary workers, or flexible labor pools can step in as supplemental shift coverage during peak production periods without requiring excessive overtime from permanent staff.

Flexible Scheduling

Flexible scheduling is becoming increasingly important for attracting and retaining talent, and thereby reducing overtime.

According to the Manufacturing Institute:

Nearly 47% of manufacturers offer flexible scheduling for production workers.

Align Staffing Levels with Production Demand

Many manufacturers apply labor broadly across their facilities rather than targeting specific production bottlenecks.

The result is often unnecessary overtime in some areas while other departments remain adequately staffed.

A more effective approach is to closely analyze:

• Production throughput by department
• Line-level staffing requirements
• Seasonal demand patterns
• Peak production windows
• Equipment utilization rates

For example, overtime may be concentrated in packaging, shipping or final assembly rather than throughout the entire operation.

Addressing staffing shortages in a single critical area can eliminate overtime across multiple downstream processes.

When staffing levels are aligned more precisely with production demand, manufacturers can often increase efficiency without increasing total workforce hours.

Use Temporary Staffing Strategically

Temporary staffing is often viewed as an emergency solution. However, the most successful manufacturers use it as part of a broader workforce strategy.

Supplemental labor can help organizations:

• Manage seasonal demand increases
• Support new product launches
• Cover planned absences
• Reduce employee fatigue
• Prevent costly disruptions

This approach allows manufacturers to scale workforce capacity when needed while avoiding the long-term costs associated with overstaffing.

Instead of waiting until overtime becomes excessive, organizations can proactively supplement their workforce during predictable demand periods.

For many manufacturers, this creates a more stable balance between labor availability and production requirements.

Don't Overlook the Human Cost of Excessive Overtime

The discussion around overtime often focuses on labor costs. However, the long-term impact on employees can be just as significant.

According to the ManpowerGroup Talent Barometer:

54% of U.S. workers report experiencing high daily stress.

In addition to raising stress levels, excessive overtime can contribute to:

• Fatigue
• Higher absenteeism
• Increased turnover
• Safety concerns
• Lower employee engagement
• Reduced workforce sustainability

While overtime may help meet today's production targets, employee burnout can make tomorrow's staffing challenges even more difficult.

The most productive manufacturing operations recognize that workforce health and operational performance are closely connected.

The Takeaways: Reduce Overtime While Maintaining Throughput

There is no single solution to reducing overtime. The most successful manufacturers take a proactive approach, focusing on:

• Improving workforce planning and forecasting
• Cross-training employees to eliminate skills bottlenecks
• Adopting smarter scheduling models
• Aligning labor more closely with production demand
• Using supplemental staffing strategically
• Leveraging workforce management technology

By addressing the root causes of overtime, manufacturers can improve productivity, control labor costs, support employee retention and maintain consistent production levels.

How a Best-In-Class Staffing Agency like Manpower Can Help

Manpower, a leading U.S. and global staffing agency, helps manufacturers build flexible workforce strategies that support production goals while reducing reliance on overtime. From temporary staffing and direct hire recruiting to workforce planning and labor optimization, we help organizations maintain throughput, adapt to changing demand, and build a more resilient workforce.

Connect with us.