> Why employers can't see this on the balance sheet is a different discussion.
Because it isn't on the balance sheet. The job gets done, the overtime is unpaid.
They assume that if the hours reduce, the job won't get done, they don't see each hour of less hours being productive because they've but been convinced to try the fewer hours option.
Good for them. If the quality bar holds, they deserve to be rewarded.
Based on personal anecdata, the quality bar does not hold. Not in India, nor anywhere else.
Why employers can't see this on the balance sheet is a different discussion.