HRIS Play 1/10: How to Track Overtime Pay in Excel

Are you struggling to keep up with overtime tracking in a rapidly growing team and dynamic work environment? Let's simplify it with basic spreadsheets.

This guide will walk you through using Excel formulas and functions to effortlessly monitor overtime. Today we are breaking down and diving deep into mastering essential HR metrics – all with JUST the power of Excel.

Scenario

When your team needs to work extra hours, the first thing to do is to structure your analytics. Set up basic parameters that will allow you to assess overtime hours and related payments in your company.

Obviously you can use an HRIS to automate your process, but I think it's good to know the basics.

Overtime Hours and Compensation:

• Definition: Overtime hours are the total number of hours worked by employees beyond their regular scheduled hours.
• Excel Method: Create a spreadsheet to track employee work hours, including regular and overtime hours. Utilise formulas to calculate total overtime hours per employee and aggregate data for the entire team.
• Note: this is a very basic template meant to be a start.

• In the "Total Hours" column (C) add the total number of hours worked by each employee on each date.
• In the "Regular Hours" column (D) enter the  regular hours worked by each employee.
• In the "Overtime Hours" column (E) calculate overtime hours by subtracting the regular hours from the total hours for each employee on each date.
• You can adjust the formulas and hourly rates as needed based on your organisation's policies and pay structure.

• The "Total Regular Hours" sums up the total number of regular hours worked by each employee.
• In the "Total Overtime Hours" calculate the total overtime hours by subtracting the total regular hours from the total hours for each employee.
• Lookup formulas such as SUMIF are used to calculate these parameters based on the employee's name.

Expected Results

Build a detailed and measurable attendance and overtime model for your organisation that will allow you to accurately track any overtime pay. You can generate comprehensive reports, identify trends, and make data-driven decisions regarding overtime pay.

It's simple, isn't it? I believe this basic flow can empower small and fast-growing teams to accurately monitor and manage overtime pay before switching to HRIS.

Final Thoughts

I think that utilising HRIS is MUCH BETTER. as it will surely...

• reduce manual errors
• accelerate the entire process and thus save you time
• simplify the payroll processing

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