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Hourly vs. Salary - IT Developer
Posted on 9/1/22 at 5:20 pm
Posted on 9/1/22 at 5:20 pm
I'm spoke with a recruiter today. The job they're offering is an hourly rate vs. a salary. What is the ploy here? I'm currently salary. The hourly rate being discussed (assuming 40 hours a week) is 35%-50% more. Is it hourly because they don't know if they have 40 hours of work in a week? I suppose if that's the case, I could work 35% less, and make the same as I make now. Why would a company offering that pay range, offer an hourly rate outside of what I've stated? Anyone ever accepted this kind of job and what was the outcome.
9
Posted on 9/1/22 at 5:25 pm to WhiskeyThrottle
benefits and bonus the same? I'd do hourly even if exempt to avoid working free weekends.
Posted on 9/1/22 at 6:59 pm to WhiskeyThrottle
Ask them the average work hours per week for the position.
Make sure they commit (in writing) to a 40-hour work week (if they are legit, they'll have no problem doing this as it's expected). Ask about "opportunities for overtime", how overtime is compensated (if they allow OT) and "clocking in/out" procedures even for breaks.
I've seen far too many poor managers manage through making policies which impact a broad swath of people just to avoid having to deal with a person specifically and this often involves time. This can be something like everyone taking a 15-minute "smoke break" has to sign their time in/out in a logbook at the receptionist's desks to mandating a 5-minute window prior to assigned report time for people to log in (ie: not any earlier than 5 minutes before the time you are to be there and not a single second after) and/or a 5-minute window after you are to clock out.
Hourly jobs are common up and down the food chain but usually they pay less than salaried positions (the trade-off being the vast discrepancies in hours from week to week like you mentioned). This big of a jump TO an hourly makes me wonder if you aren't getting hosed at your current job, this company is desperate for workers (or they are desperate for you) or they have enough of a history of management problems that they have to pay so high just to get applicants.
Try to ask around about the place and the management or the department you would be in while you are waiting to hear back from them.
Make sure they commit (in writing) to a 40-hour work week (if they are legit, they'll have no problem doing this as it's expected). Ask about "opportunities for overtime", how overtime is compensated (if they allow OT) and "clocking in/out" procedures even for breaks.
I've seen far too many poor managers manage through making policies which impact a broad swath of people just to avoid having to deal with a person specifically and this often involves time. This can be something like everyone taking a 15-minute "smoke break" has to sign their time in/out in a logbook at the receptionist's desks to mandating a 5-minute window prior to assigned report time for people to log in (ie: not any earlier than 5 minutes before the time you are to be there and not a single second after) and/or a 5-minute window after you are to clock out.
Hourly jobs are common up and down the food chain but usually they pay less than salaried positions (the trade-off being the vast discrepancies in hours from week to week like you mentioned). This big of a jump TO an hourly makes me wonder if you aren't getting hosed at your current job, this company is desperate for workers (or they are desperate for you) or they have enough of a history of management problems that they have to pay so high just to get applicants.
Try to ask around about the place and the management or the department you would be in while you are waiting to hear back from them.
Posted on 9/1/22 at 7:31 pm to WhiskeyThrottle
No PTO I assume. You work or you don't get paid. Does that 35-50% make up for taking some time off?
ETA: And yea the benefits are typically basic to none on contract.
ETA: And yea the benefits are typically basic to none on contract.
This post was edited on 9/1/22 at 7:36 pm
Posted on 9/1/22 at 10:36 pm to WhiskeyThrottle
G40 bro.
Posted on 9/2/22 at 12:21 pm to WhiskeyThrottle
A lot of multi-state employers do hourly compensation to avoid class action lawsuits as they pertain to overtime.
I believe I am aware of such lawsuits in California and Texas.
Essentially, a salary employee is required to work 50-60 hours (quotas and deadlines) and doesn't feel the salary position compensates properly. So a large enough percentage of the workforce lawyer up and file suit.
I was with Lehman Brothers and they switched us from salary to hourly for that reason. I've seen several other fortune 100 employers do the same over the past 15 years. It mitigates risk.
I believe I am aware of such lawsuits in California and Texas.
Essentially, a salary employee is required to work 50-60 hours (quotas and deadlines) and doesn't feel the salary position compensates properly. So a large enough percentage of the workforce lawyer up and file suit.
I was with Lehman Brothers and they switched us from salary to hourly for that reason. I've seen several other fortune 100 employers do the same over the past 15 years. It mitigates risk.
Posted on 9/2/22 at 2:38 pm to WhiskeyThrottle
What type of industry is the employer in? This type of offer is generally on the table for employers who work in volatile or seasonally-dependent industries.
It's done to navigate the salaried tests by the DOL. Salaried employees can't be docked pay for quality or quantity of work; they generally can only be docked for absences occasioned by the employee (took a day of vacation when they didn't have any time off available). Therefore, they can budget a position at a lower rate and stomach the cost during the times of volatility because they're getting a bargain during the busy season.
Hourly employees are just paid the hours they work. So they entice you with the hourly rate because it's pretty and high, but you may not have a pre-determined set of hours available to work each week and the employer doesn't have to concern themselves with the cost of paying you during downtimes.
The question you need to ask them is if employment comes with a set number of hours per week or if employment comes with a fluctuating workweek.
eta: Are you 100% sure they/you are referring to it correctly? You can be salaried and still make overtime by being non-exempt. People generally get confused between the differences/similarities of hourly and salaried non-exempt.
It's done to navigate the salaried tests by the DOL. Salaried employees can't be docked pay for quality or quantity of work; they generally can only be docked for absences occasioned by the employee (took a day of vacation when they didn't have any time off available). Therefore, they can budget a position at a lower rate and stomach the cost during the times of volatility because they're getting a bargain during the busy season.
Hourly employees are just paid the hours they work. So they entice you with the hourly rate because it's pretty and high, but you may not have a pre-determined set of hours available to work each week and the employer doesn't have to concern themselves with the cost of paying you during downtimes.
The question you need to ask them is if employment comes with a set number of hours per week or if employment comes with a fluctuating workweek.
eta: Are you 100% sure they/you are referring to it correctly? You can be salaried and still make overtime by being non-exempt. People generally get confused between the differences/similarities of hourly and salaried non-exempt.
This post was edited on 9/2/22 at 2:41 pm
Posted on 9/5/22 at 4:19 pm to WhiskeyThrottle
I have been working in IT for years now and still stuck at help desk/desktop support. I'm Networking+ and Security+ certified.
I have been applying and applying w/o any success.
How did you get off the help desk?
I have been applying and applying w/o any success.
How did you get off the help desk?
Posted on 9/5/22 at 5:40 pm to WhiskeyThrottle
I have worked with developers, some USA based on a team of mostly India based developers, with the USA guy as the "team lead" so to speak for communications purposes, this developer doing more conference calls than actual dev. The coding is all done by the Indians. The USA lead oversees it. Is this a lead job or they actually want you coding? I would be wary of a straight up coding job. Also, what you really want is salary, but you would still have to fill out time sheets so you can allocate your time to multiple projects depending on what all you are working on that week. I'm not a code monkey nor a developer, but I have worked with them a lot in the last three years.
Posted on 9/7/22 at 3:52 pm to WhiskeyThrottle
I'm hiring developers right now for my engineering team. Full-time with a competitive salary, benefits, unlimited PTO, and stock options.
Email me your resume at mytdroppingemail @ gmail.com
Email me your resume at mytdroppingemail @ gmail.com
This post was edited on 9/7/22 at 3:53 pm
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