Every operations manager knows that overtime is part of the holiday playbook. When volume spikes and orders pile up, the simplest solution is to stretch your existing workforce. But while overtime can cover immediate needs, it comes with hidden costs that often outweigh the benefits.

In today’s competitive labor market, relying too heavily on overtime is a short-term fix that can erode long-term productivity, morale, and profitability.

Overtime’s Hidden Price Tag

On paper, overtime seems like a manageable expense. Time-and-a-half may be costly, but at least the work gets done—right? The reality is more complex.

• Payroll Ballooning – Even a few weeks of extended hours can cause labor costs to spiral. What looks manageable in week one can quickly consume the budget by week three.
• Fatigue and Burnout – Tired employees make mistakes. In peak season, that means mispicks, mispacks, and higher return rates—errors that ripple across the supply chain.
• Declining Productivity – Studies consistently show that once workers exceed 50–55 hours per week, productivity drops. You’re paying more but getting less.
• Turnover Risk – Pushing teams to their limit may solve today’s challenge, but it often results in employees seeking more sustainable work environments after the holidays.

The Bigger Risk: Customer Impact

In peak season, every order matters. Mistakes caused by overworked employees aren’t just operational hiccups, they directly affect customer experience. A late shipment or mispacked order during the holidays can cost you more than the replacement—it can cost you future loyalty.

Operations managers know that a single slip during the holiday rush can undo months of strong performance. The question isn’t whether you can “get by” with overtime—it’s whether you can afford the long-term fallout.

Smarter Alternatives to Endless Overtime

Rather than leaning on overtime as the default, forward-thinking operators are building flexible workforce models that absorb demand spikes without exhausting teams. Here are three proven strategies:

• Cross-Training – Employees who can shift across roles give you built-in flexibility. Instead of pulling 12-hour shifts, you can balance workloads by moving staff where demand is heaviest.
• Workforce Scaling Ahead of Peak – Bringing in additional team members earlier—before Black Friday and Cyber Monday—ensures they’re trained and ready. This prevents the scramble that forces reliance on overtime.
• Insourced Labor Models – Many companies are moving away from temp agencies and instead building a steady, long-term workforce that scales when needed. This reduces dependency on expensive overtime while improving quality.

A More Sustainable Approach

The takeaway? Overtime may help you survive the day, but it isn’t a sustainable workforce strategy. A balanced approach—one that combines trained, flexible employees with smarter scheduling—keeps operations running smoothly without burning through budgets or exhausting your teams.

As the holiday rush continues, it’s worth asking: Are you paying too high a price for overtime?

About iJility

At iJility, we help operators move beyond short-term fixes like overtime and temp labor. Our customized workforce solutions create stability year-round while still allowing you to flex for peak season. The result? Lower labor costs, higher productivity, and a workforce that delivers consistent quality.

Don’t let overtime drain your profits this season. Schedule a discovery call with iJility today and learn how a smarter workforce model can transform your operations.