A recent report from Pipedrive, a CRM platform for small businesses, highlights how overtime work does not lead to an improvement of key performance indicators (KPIs) among employees – but is actually linked to worse outcomes.

According to the State of Sales and Marketing report released on 4 November 2024, 69 percent of respondents reported working overtime, with one in ten working over 16 additional hours weekly. However, extended hours did not lead to better outcomes; those working longer hours were 10 percent less likely to meet their KPIs compared to colleagues maintaining standard hours.

The data revealed that working more than 16 hours of overtime weekly often results in a 60+ hour workweek, which can be particularly common among higher-level executives, such as CEOs and founders. Regionally, employees in the United Kingdom and the United States were found to work overtime more frequently than their counterparts globally.

Despite the high incidence of overtime, employees not engaging in extra hours had better outcomes, with 66 percent hitting their targets. In comparison, only 60 percent of those working up to 15 additional hours and 58 percent of those exceeding 16 extra hours met their targets.

Work-life balance satisfaction also correlated strongly with working fewer hours; 42 percent of employees not working overtime rated their work-life balance as “very good,” compared to just 12 percent of those frequently working additional hours.

Managerial Support Improves KPI Achievement

The report also shows that feeling supported by managers can enhance employees’ chances of meeting annual goals. However, only one in three employees surveyed felt adequately supported by their managers. Those who did feel supported saw a 13 percent higher rate of goal achievement, with 63 percent meeting their targets last year. Supportive management was also linked to higher overall job satisfaction, with female employees who felt supported reporting a 32 percent increase in target achievement.

Effective management can impact goal achievement directly, as well as influence overall employee wellbeing and productivity. Pipedrive’s data suggests that workers who feel supported by their leaders tend to perform better, further reinforcing the value of proactive and empathetic leadership within organisations.

Dominic Allon, CEO of Pipedrive says, “We often assume that more input equates to more output; so working more hours would naturally correlate to more value, greater business success. But our findings underline the contrary. With the UK’s productivity epidemic looming large we don’t need to be working more hours, we need to be working smarter and with a greater sense of teamship. And that again is evidenced by how the right tech tools and the right human support deliver a powerful foundation to unlock the best results from employees.”

Role of Technology in Performance and Satisfaction

The report also underlines the importance of technology, particularly automation and CRM tools, in achieving workplace goals. Employees who used automation reported higher happiness and a 6 percent improvement in work-life balance. Similarly, employees using CRM software saw a 4 percent boost in goal attainment over those without such support, pointing to technology’s role in improving both efficiency and employee morale.

The data also highlights the impact of satisfaction with workplace tools on performance. Eighty-two percent of employees who expressed satisfaction with their software tools achieved their KPIs, a notable increase over the 62 percent of employees who disliked their software—a significant 24 percent differential.

“Business leaders should be concerned when staff are frequently working overtime, it’s unlikely to have a positive impact on their business or their employee’s workplace happiness,” Dominic Allon added. “They should also invest time to learn how employees feel about both their managers and the tech platforms many ‘live in’ the majority of their day – not just because it’s the right thing to do, but also because it pays to do so.”