Working overtime is something that’s not always well looked at and there are various reasons for it, both economical and physical.
For one, working overtime means that you’re not resting when you ought to be and you’re risking with your health, with your efficiency and so on. The company who has people working overtime is risking losing their employees due to health problems, them leaving since they cannot handle the workload etc. Do keep an eye out for your employees in that sense and use whatever measures and possibilities you have to force them to take their vacations and to take time off. It’s investing into your people.
When it comes to business and its people working overtime, it means that there are possibly regulations the company is not in compliance with and it’s probably breaking a law or two. That’s risk number one in this situation, but something that also arises with people working overtime is the extra cost in some countries at least since overtime is usually rewarded with a higher salary. It’s sort of a punishment for a company and a motivation to try and get people to rest. I am not sure it always works like that, but at least it’s there in some countries as one measure to ensure that at the end of the day people don’t kill themselves at their jobs.