Blogs & Latest News Annualised Hours

Annualised Hours is an established and proven way of organising shift working that, despite its clear benefits, is somewhat misunderstood and yet to be adopted by many employers.  

However, faced with the urgent need to improve productivity, flexibility and employee wellbeing, we believe it’s time organisations across the public and private sector re-appraised this system.

There are numerous variations of annualised hours systems but, put simply, it is a means of calculating employees’ Working Time and pay over the course of a standard year, rather than by the week. 

Shift patterns are often tied to legacy working practices or institutionalised habits that bear little resemblance to the fluid situations an organisation faces, ultimately creating harmful misalignment between demand and the supply of labour.

• Over-supply creates inefficiencies which can lead to job losses and skills drain.

• Under-supply generates reliance on expensive peripheral temporary forms of labour such as overtime and agency staff. Typically, overtime is non-contractual and therefore reliant on goodwill. 

• In many instances, imbalance of supply and demand leads to employee stress or sickness and breaches of Working Time or Health and Safety legislation.

Annualised Hours is a proven and effective solution to this problem.

Adopting Annualised Hours enables truly responsive Demand-Led Rostering systems to be created using shift patterns that ensure exactly the right amount of resource is available at exactly the time it is needed.

So here’s our top 10 signs you should consider Annualised Hours:  

1. Labour demand or supply fluctuates seasonally, weekly, daily or hourly

2. Your labour costs are unpredictable

3. Overtime is necessary to meet demand levels

4. Agency staff are used to provide flexibility or cover 

5. You risk breaching Working Time regulations at busy times

6. Your machinery/equipment frequently lies idle 

7. Your shift patterns have not been changed for years 

8. You struggle to attract candidates for full-time positions

9. Morale is low and your absence levels are high 

10. Administering holidays and shift swaps is a burden

If you would like to learn more you can find Part 1 of our report into Annualised Hours here

We're also hosting a Workforce Planning Masterclass in May which will focus on how to design, implement and manage optimised shift patterns. 

Click here for more information or call 0161 720 5050 to book your place.


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