Overtime Alternatives for BC Employers: Time Off in Lieu, Flexible Scheduling, and More

By: Megan Jackson

 

For many organizations in BC, overtime has become the default solution to increased workloads and staffing shortages. While paying time-and-a-half is sometimes unavoidable, relying on overtime too heavily can come at a cost of burnout, disengagement, and higher payroll expenses.

Excessive overtime doesn’t just affect budgets. It also impacts employee health, morale, and retention, putting long-term productivity at risk.

Forward-thinking employers are taking a different approach. By exploring creative alternatives to overtime, organizations can maintain performance while showing employees that their well-being matters.

 

Here are some practical, proven strategies to consider:

 

1. Time Off in Lieu (TOIL)

Instead of paying overtime, employers can offer time off in lieu – additional paid leave equivalent to the extra hours worked – as long as it complies with the Employment Standards Act.

Employers can only provide time off instead of overtime pay if:

• There is a clear, written agreement with the employee.
• The time off equals the overtime pay owed (e.g., 1.5 hours off for every overtime hour).
• The time off is taken within a set period (often 3–6 months, depending on the policy).

Why it works:

• Gives employees rest and recovery time.
• Can reduce payroll expenses compared to overtime pay.
• Supports work-life balance.

Be sure to track TOIL carefully and set clear policies about how and when it can be used.

 

2. Flexible Scheduling

Flexible schedules can help manage peak demands without creating unsustainable overtime. Some options include:

• Compressed workweeks (four 10-hour days instead of five 8-hour days).
• Staggered start times to increase coverage.
• Shift-swapping systems that empower employees to balance their time.

 

3. Cross-Training Employees

When only a handful of employees have the skills to perform critical tasks, overtime often becomes unavoidable. By cross-training staff, workload can be distributed more evenly and bottlenecks eliminated.

Cross-training not only prevents burnout but also creates a more resilient, agile workforce and gives employees valuable opportunities for skill development.

 

4. Job Sharing

Two part-time employees can share the responsibilities of one full-time role. This approach can:

• Reduce the need for overtime.
• Retain skilled employees who prefer reduced hours.
• Ensure consistent coverage and collaboration.

 

5. Temporary or Contract Staff

For seasonal peaks or special projects, hiring temporary or contract workers may be more cost-effective than repeatedly paying overtime. While onboarding is required, it prevents overburdening permanent staff and keeps morale high.

 

6. Streamlining & Technology

Sometimes overtime is a symptom of inefficient systems. Outdated processes or administrative overload often force staff into longer hours.

Providing the right tools and automating repetitive tasks can reduce unnecessary overtime. Workforce scheduling and HRIS software, for example, can forecast needs, flag potential overtime before it happens, and help employers match staffing to demand.

 

7. Clear Overtime Rules

One of the simplest but most overlooked alternatives is clarity. BC Employers should document when overtime is permitted, how it’s approved, and how it will be compensated. Transparent policies reduce misunderstandings and help foster a culture where overtime is truly exceptional, not routine.

 

How Pivot HR Services Can Help

At Pivot HR Services, we help employers design custom workforce strategies that reduce reliance on overtime while keeping operations running smoothly. This includes:

• Developing and implementing overtime policies.
• Supporting flexible work arrangements that meet both employee and business needs.
• Designing and delivering skill development programs.
• Advising on the adoption of scheduling tools and workforce planning models.
• Guiding leaders in culture shifts, where overtime is no longer the default solution.

Contact us to learn how we can help your organization implement more efficient alternatives to overtime and support in creating a healthier, more sustainable workplace.