Alexandoy
VIP Contributor
This issue is always debatable because an additional staff is a regular expense while paying overtime work is just an extra expense. One actual example is a wholesaler of food items that they deliver to small stores. The orders are piling up so the delivery continues until evening. An additional delivery guy would incur not only the fixed salary but also the delivery vehicle which is s tricycle (motorcycle with a cargo bin on the side) that is not cheap.
The setup is welcome to Ramon, the delivery guy, because he is earning more because of the overtime pay. But Ramon spends 12 hours a day in his job and has no day off. There came a time that Ramon got very sick. All the orders had piled up that the owner had to contract a delivery team to satisfy the orders. In the end the expenses was too much that the owner considered hiring an additional delivery staff.
The setup is welcome to Ramon, the delivery guy, because he is earning more because of the overtime pay. But Ramon spends 12 hours a day in his job and has no day off. There came a time that Ramon got very sick. All the orders had piled up that the owner had to contract a delivery team to satisfy the orders. In the end the expenses was too much that the owner considered hiring an additional delivery staff.