Six days for the price of five: unpaid hours in finance

Six days for the price of five; this sounds like a great deal you might see at your local travel agent, for a metro pass ticket or an international theme park. But when considering this in the context of your salary; working six days and only receiving remuneration for five, not so much.  

 A recent study conducted by trade union GMB has revealed that one in four professionals in the public sector work an average of eight hours unpaid every week – that’s an entire working day each week without pay, with those living in the South West most likely to work unpaid overtime.
The study also highlighted that if public sector workers were paid for these hours, they would be owed an average of £6,000, which is equivalent to a 24% pay rise. The cold reality is that some of these 1.8m public sector professionals regularly working unpaid overtime, are facing real term pay cuts and are essentially earning below the minimum wage. The effect of decreasing annual salaries could be a watershed moment for families getting on the housing ladder.
Public sector workers undertaking finance roles are almost twice as likely to work unpaid overtime compared to their private sector counterparts according to this research. So why are finance professionals working so many additional hours?
Today’s finance teams, both in the public and private sector, face numerous priorities that must be completed within strict deadlines and to the highest quality such as financial close or month/year end that is expected to be speedier and risk-free with clear audit trails. Senior stakeholders require accurate and easy to digest data to make timely well-informed commercial decisions. Whether this is a management report for the Head of Service, a detailed overview of spending or a KPI report on utilisation and labour rates - data needs to be produced and that is where the finance team steps in.
Time penalties due to inefficiencies, errors and turnover of staff may all contribute to an accounting timetable being stretched. The time finance professionals spend on tasks that are easily automated or, even worse, are simply wasted efforts can be reviewed. According to a report recently published by PwC, 40% of a finance team’s activities could be better aligned to more value driven activities through automation. If these were reduced or eliminated, it could put an end to these numerous hours of unpaid work that do not reconcile or reflect many finance professionals’ pay slips. These hours of hard work that staff are receiving no compensation for, amount to a combined total of £11bn each year.

What are the consequences of unpaid overtime?

Professionals who consistently work unpaid overtime are consequently more likely to experience stress-related health problems which can include raised blood pressure and fatigue resulting in impaired performance and decreased productivity. For companies, poor health among employees might mean increased absenteeism or staff simply needing to take more time off. Excessive overtime and increased stress among employees can result in morale problems within the team which, again, can be manifested as low productivity and absenteeism but also reduced retention. A high turnover of staff inevitably leads to increased costs in hiring and training new staff, and as mentioned above, a further strain on the already stretched finance team.
In order for employees to be efficient in their roles and productive within their teams, good physical, mental, and social health is essential. Stress, poor work-life balance and related health issues not only lead to poor performance but also lower employee retention. 
One solution could be to encourage flexible working, allowing employees to work around their personal needs. This might mean flexible start and finish times or working from home if need be. Dynamic working encourages individuals to fit their work around their everyday lives and provides flexibility to do non-work related activities during work hours. 
From research we gathered based on 1000 UK adults, those working in banking and financial services identified flexible working hours and the option to work from home as the two benefits they would most like to be offered in the next 3-5 years. Of those individuals, 66% ranked flexible working hours in their top three and 53% included work from home options in their three most wanted benefits. 
In light of this, it was also revealed that, while in their current role, 44% had been offered flexible working hours and just 26% were given the option to work from home.
Dynamic working arrangements will vary between employees, for example, those who have a long crowded commute might wish to arrive and leave earlier to beat peak hour travel times. All employees have the legal right to request flexible working, not just parents or carers, and while this might not be beneficial to everyone, having the option available promotes a high-trust, high-performance business culture. 
If you would like more information on flexible working for your employees or to explore your career options within the current market, please get in touch for a confidential discussion.
Raj Baden
Senior Manager, Michael Page Finance
T: +44 121 634 6920