Salary Vs Hourly
Salary vs. Hourly: Weighing the Pros and Cons
The debate between salary vs. hourly pay has been going on forever, and determining the pros and cons can be a very personal decision. In fact, there is not many topics that are more personal than the salary vs. hourly dilemma. Each side has its good and bad points. Focus on both sides, get all of the information and then decide which will work for you. Where will you fall in the salary vs. hourly debate?
The Pros of Being Hourly
There is a definite good side to being hourly, and for most people that side is called overtime. Many employers pay their hourly workers overtime for any hours they work that exceed their regularly scheduled hours. For example, an employee who usually works 40 hours per week will get paid overtime for any hours they work that go over the 40-hour mark. These policies may vary from job to job, but no one can deny that getting paid time and a half is a definite benefit.
Another good thing about being hourly is that you know what is expected of you. You have a scheduled time to arrive and go home and are generally scheduled for a specific number of hours to work each week. Being hourly can also make calculating time off a bit easier, because you are allotted a certain number of hours for sick time or vacation time.
The Pros of Being Salaried
Being salaried may free employees from the strict time constraints that hourly workers must adhere to. Salaried workers frequently have a looser schedule, so their arrival and departure times can be a bit more flexible. And who doesn’t love a little freedom in the workplace? Salaried employees also have the benefit of knowing exactly what there paycheck will look like from week to week. Since they are paid a lump sum, the total will generally not fluctuate between pay periods.
The Cons of Being Hourly
Most hourly employees have complained from time to time about the restrictions on time that come with being hourly. Getting paid by the hour means that workers need to account for each hour that they are being paid for. Many times that means punching in and out on a time clock. Oftentimes this means when you arrive in the morning, when you leave at the end of the day and anytime you take a break.
Hourly workers must account for every working hour, and that can sometimes be inconvenient. If an hourly employee wants to step out for a couple hours during the work day, they have to punch out, meaning they can’t just sneak out for a little while and then pop back in. This can be somewhat inconvenient, especially on those days when you are running a few minutes late or want to skip out a little bit early.
The Cons of Being Salaried
Probably the biggest complaint salaried employees have is that they rarely get paid overtime. This means that the salaried worker gets paid the same no matter how many hours they actually put in every week. Some companies do compensate salaried workers for extra time, but since they rarely punch in and out on a time clock this can be difficult to monitor. It is not uncommon for salaried workers to be called upon whenever there is a situation requiring extra hours. Why should the boss pay an hourly employee overtime when they can call in the salaried employee for nothing?
As with anything related to work and finances, the decision between salary and hourly is personal and should be based on your own particular circumstances.