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Give your employees sane working hours as Evan Robinson writes in “Why Crunch Mode Doesn’t Work: 6 Lessons”. I.e: 40 hours work-weeks or less. While sometimes asking them to stay late to finish a deadline is acceptable, the so-called “crunch mode” is under-effective and a recipe for disaster.
This feature was covered on Slashdot where there are many useful comments and later on a similar article (“Why We Have to Go Back to a 40-Hour Work Week to Keep Our Sanity”) was published in the site AlterNet, and also featured on Slashdot (with many comments).
This cannot be stressed enough. The more people work, the less their hourly throughput is going to be, until they end up at negative throughput. As a result, overworking workers is dangerous because you're risking introducing bugs and destroying existing work. Furthermore, your workers are going to be much less happy than if they worked less, which is also something you'd like to avoid.