The answer to the question is working overtime worth it? Is generally a yes. Not only does it show commitment to the job, increasing job security, the company pays you a time and a half rate. That extra 50% boost to your pay is well worth the effort.
In one of my internships, the company actually offered overtime pay to the interns. It was the most bizarre internship I’ve ever experienced because overtime isn’t really offered to interns. I was getting $16/hour with the ability to make up to $24/hr.
I took advantage of the situation as much as I could and I worked overtime whenever they asked me to do so. Is overtime worth it? Generally yes, because where else are you going to get a 50% increase to your pay? The average annual raise in America is around 2 – 3%.
An extra 50% increase to your pay is just ridiculously worth it. You’re not going to find that level of returns anywhere and as easily. Although there are exceptions, the pros of working overtime outweigh the cons of working overtime in many situations than not.
Another question you may have is is it better to work overtime or work two jobs? Doing one job very well and in a high quality manner is better than doing two jobs in a mediocre way where you may not get the recommendation that you need to level up in your career.
There are many people who dislike overtime when that shouldn’t be the case.
What is Working Overtime?
Working overtime is when a non-exempt worker physically work above the 40 hour standard workweek. The pay is accrued at a time and a half. Many employers understand they are legally required to pay 1.5x the usual wage rate. Therefore, they instruct employees to avoid it as much as possible.
The vast majority of full time workers are exempt. Exempt means they are not eligible for overtime pay nor do they qualify for minimum wage. They are paid a fixed salary plus maybe bonuses. In exchange, the vast majority of these jobs are livable income wages.
Non-exempt employees do not have such restrictions. If the employer wants them to work 40+ hours a week and is willing to pay a time and a half for their time, then there is an offer to work at the agreed upon rate. When I was working at the now bankrupt Sears as a high schooler, the company would try hard to stop us from working 40 hours.
They, at all costs, did not want to pay overtime to the employees, let alone pay benefits, and actively prevented us from working more hours than necessary. I was just a high school student so I wanted to work as much as possible.
I worked until they wanted me to work and saved 100% of the after-tax amount. It was a wonderful time where I could earn some money when I generally wasn’t doing anything in the summer anyway. However, if I was offered the chance to, I would’ve absolutely worked overtime.
Because I knew that is working overtime worth it? is a resounding yes.
Is Working Overtime Worth It? Pros
So now, below are the pros to why working overtime is worth it.
1) Working Overtime Means Significantly More Money
The 1.5x pay just can’t be ignored. Many people who ask is working overtime worth it do not fully understand just how valuable that extra 50% pay really is. That’s returns that you can get in the stock market over a decade or so. But the company is offering that returns in just a single day.
That’s a ridiculously great return on investment! Working overtime means you get paid more money and if you thought your time was worth it at 100% of agreed upon pay, then your time is really worth it at 150% of agreed upon pay.
Working overtime not only shows your commitment to the job. Your boss will like you even more for putting in the work when they need it the most. If the company is wanting to pay overtime to employees, it means they have no other choice except to pay you more for your time.
They want to pay that extra 50% just so they can get business going.
2) Shows Commitment to the Job
Whenever Sears needed extra people for work, they called me for extra work. Why? I never said no to additional work. Every time the company wanted me to work, I never declined because I couldn’t believe someone was going to pay me money for my time when I wouldn’t have done anything else anyway.
If they asked me to work overtime, I would’ve gladly said yes. Is working overtime worth it? Yes, especially when you consider that the company now depends on you. it’s one thing when you’re dependent on the company. But when the company is dependent on you, you have power.
That gives you even more opportunities down the road. It’s not just about the extra 50% in pay that you get. It’s about the future opportunities as well. The more you are good at your job, the more opportunities that will come your way.
Word gets around and the top workers reap the majority of the benefits.
3) Increase Your Skillset Faster
There’s a reason why the 10,000 hour rule is popular. It actually works and it’s true. The people who became outrageously good at their craft and what they do put in at least 10,000 of work, effort, and practice to get there. When you accelerate that growth, you accelerate your future even further.
Is working overtime worth it? Yes when you realize that your skillset increases faster than your current pace. Growing your skillset and developing them slowly is fine at first. However, there comes a time when you are so good at what you do that it’s not a bad idea to push yourself even further.
We are living in a skill-based economy where the knowledgeable gets ahead. The knowledgeable gets further in life because it’s all about knowledge these days. It’s not about who has the most brute force. It’s about who has the smarts to make the company the most amount of money.
Knowledge is powerful. Therefore, when you accelerate your growth and development, it can only be a positive for you.
4) You Meet Your Goals Faster
If your plan is to get richer, then there you go. That extra 50% boost to pay is what you need to get to your goals faster. There’s nothing wrong with making more money. Is working overtime worth it? Yes, and especially more so if you want to reach financial independence faster.
If I was working a non-exempt job currently, I would be willing to work as much as possible to get there. An extra 50% boost to my pay would provide me with enormous returns. However, that’s not the world I live in currently and I am completely OK with that.
There’s nothing wrong with achieving your goals faster through overtime work and pay. Not many even have the opportunity to earn overtime pay because employers are actively trying not to pay overtime. Therefore, when you get that rare chance, why not take full advantage of it?
Your future self will thank you for it.
Is Working Overtime Worth It? Cons
Is working overtime worth it? Not always. It’s not always peaches and cream. Let’s explore the cons.
1) Time Away from Family
I’m currently in my 20s so the answer to the question is working overtime worth it? is a resounding yes. However, not everybody is in their 20s without a family. There are times when you already have a family and spending time with your wife and children matters more than making as much money as you can.
When you’re working overtime, you are prioritizing work over family. And it may take time away from the family, which may not always be the best thing. There are many important things in life. And while money is important, money isn’t everything.
There’s something priceless about attending your kids’ weekend soccer games. Or going to your kids’ piano recital. Is overtime worth it? Not when you want to prioritize family time. We take our family for granted because they’re there tomorrow, next week, and next year.
However, that’s not always the case.
2) Pay More Taxes
Yes, you will get a 50% boost to your pay. However, that means your tax liabilities are higher and the increase in salary could be taxed at a higher rate, depending on your tax bracket. Your time may not actually be valued at an extra 50% increase, then.
While the taxes are not going to be enough to where you will be financially worse off, the marginal increase in wages may not be enough to be worth it for you. For me, currently, I just care about the absolute dollars that I earn. I’m not really going to do anything at home that earns money, anyway.
Therefore, working overtime is worth it to me no matter how much more the increase in wages are going to be taxed out. Is working overtime worth it? Not for some people who value their time more highly than money and would much rather sit at home and relax than earn that extra dollar.
This is a con that can’t be ignored. One day, I will be wealthy enough to where I value my time more.
3) It Takes Time Away from Your Side Hustles
Your side hustles are what’s going to build you scalable wealth. Your 9-5 builds a steady and consistent wealth level but your side hustles build you scalable wealth. Is working overtime worth it? Not when your side hustles bring in more money than the overtime pay.
Right now, my side hustles do not pay me any money that I think is worth it. However, I’m never going to give up hope and faith that one day I’ll make it to where my sacrifices will have been worth it. However, it’s not like my current company offers overtime pay anyway, which I’m perfectly OK with.
Therefore, whenever I have time to work on my side hustles, I will do it. Because my side hustles provide me with a bit of joy that I didn’t think was possible. I’m learning all kinds of marketing skills with my side hustle and I wouldn’t trade it for anything in the world.
It’s been a ton of fun learning how to do social media marketing and my weekends are spent doing exactly that.
4) Working Overtime Affects Your Health
You WILL get exhausted if you work overtime for many many weeks. Although making money is fun and provides joy, that doesn’t mean that you can make do with it forever. There’s a reason why Ford modernized the modern weekend/weekday work schedule.
Companies figured out that you can’t get employees to be working 24/7 at their jobs. Otherwise, they won’t even have time to spend all that money they earned. They’ll be too busy working at their jobs anyway. Is working overtime worth it? Not when it exhausts you.
Your work should never be your life because there’s much more important things in the world. Burnout is real and once you reach the burnout stage, you can’t easily get back to your level of neutrality. I’ve been there before and trust me, it’s difficult to get your mind right afterwards.
It took me months to recover mentally and physically from that experience.
Is Working Overtime Worth it? Generally, Yes
It’s generally worth it to work overtime. It’s also better to work overtime than to work two jobs. However, that doesn’t mean that it doesn’t come without flaws. It completely depends on where you’re at in life right now. I’m currently in my 20s so I’m completely OK working overtime to get ahead.
However, for some, their family comes above everything. Therefore, working overtime just isn’t worth it for them. People with families really don’t want to be working and miss out on their kids’ college or high school graduation.
You can always make more money and work. You can never go back to your kids’ college graduation ever again. That’s the difference. The ultimate goal is to be financially independent so that you don’t ever have to make a choice between the two ever again.
However, financial independence takes decades of planning and good financial habits to get there. Therefore, it’s better to focus on the things that are within your control right now. Is working overtime worth it? Yes, it absolutely is.
However, there are more important things in life than developing your career. Some regret prioritizing their career over family time. Your employer will fire you in a second as soon as they think it’s in their best interest to do so.
Therefore, it’s not a bad idea to place other prioritizes above your employer.
Is Working Overtime Worth It? Pros and Cons
Pros:
- Working overtime means more money
- Shows commitment to the job
- Increase your skillset faster
- You meet your goals faster
Cons:
- Time away from family
- Pay more taxes
- It takes time away from your side hustles
- Working overtime affects your health
