During the interview process one of the most important questions is whether a position will be salaried or hourly.
When you’re exploring a new position, it’s important to know the major differences between hourly and salaried employment.
PROS AND CONS OF HOURLY EMPLOYMENT:
Hourly employees receive their agreed-upon wage and are paid based on their hours worked during the week.
There can be strong benefits to being an hourly employee, including:
- A chance for overtime: usually time and a half
- Often flexibility in work schedules for improved work/life balance
Negatives of hourly pay might include:
- Paycheck inconsistency if you miss a day or hours of work
- Benefits, such as insurance or other employee perks, may be less compared to salaried employees
SALARIED PROS AND CONS:
If hourly pay isn’t for you, seeking a job which offers a stable salary might be a good option.
Some positives of salaried jobs might include:
- Consistent paycheck regardless of hours worked
- Typically, flexibility of paid vacation time
- Ability to miss work due to illness, injury, or other reasons without experiencing a cut in pay
- Usually eligible for company benefits package
Cons of being a salaried employee might include:
- The possibility of working more than 40 hours a week without overtime pay
- Work may cross over into your personal life or scheduled days off
Remember, the Fair Labor Standards Act (FLSA) regulates nearly all jobs nationwide, so whether you choose a job that pays hourly or is salaried, this ensures all employees are paid properly and legally. Salaried employees have the security of knowing the set amount they’ll receive each pay period, yet hourly employee have the chance to earn more through overtime.
Ameris bank is with you as you make important financial decisions and considerations. For more advice, reach out to us or visit our Financial Advice page.
Published November 2022