Almost a third of New Zealand businesses saw overtime increase during 2020 as employers tried to “achieve more with less”, according to the latest Hays Salary Guide.

Overtime grew in 29 per cent of organisations, and 51 per cent of workers didn’t see any extra pay, while only 13 per cent of Kiwi firms decreasing overtime in the past 12 months.

“Rising overtime is not a sustainable solution, especially when we know that further pressure will be placed on workforces in the year ahead,” said Hays New Zealand managing director Adam Shapley.

“Seven in ten employers say skills shortages will impact the effective operation of their organisation or department in the next 12 months [which will increase] workloads for existing staff.

“This is a dangerous indicator for employers, who risk their employees’ engagement, retention, and physical and mental health when overtime becomes excessive.”

One way out of this situation, according to Hays, is for businesses to encourage their workers to take up learning opportunities to fill in the skill gaps, as well as offering apprenticeships, traineeships and graduate and entry-level roles to help bolster their teams.

It’s also important to focus on encouraging a genuine work-life balance, and offer initiatives so that staff can focus on their health and wellbeing after particularly stressful periods of overtime.