Started By
Message

Hourly vs. Salary - IT Developer

Posted on 9/1/22 at 5:20 pm
Posted by WhiskeyThrottle
Weatherford Tx
Member since Nov 2017
5322 posts
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.
Posted by down time
space
Member since Oct 2013
1914 posts
Posted on 9/1/22 at 5:25 pm to
benefits and bonus the same? I'd do hourly even if exempt to avoid working free weekends.
Posted by WhiskeyThrottle
Weatherford Tx
Member since Nov 2017
5322 posts
Posted on 9/1/22 at 5:30 pm to
quote:

benefits and bonus the same? I'd do hourly even if exempt to avoid working free weekends.


This was the first introductory call. Standard benefits as to what I have now, and I haven't gotten deep enough to ask about bonuses.

I've been salary for 12 years now, so it's all I really know. Most jobs I see in this pay range are not generally hourly unless the work is contract work. I have worked 70 hour work weeks, and I've had 30 hour work weeks, and gotten paid the same. If the pay is based on hourly, I don't care if I work 30 hours or 70 hours, but I don't want to face a situation where I get less than say 30 hours a week. Not sure how I vet that out. You can ask, but the answer they give may or may not reflect reality.
Posted by diat150
Louisiana
Member since Jun 2005
43575 posts
Posted on 9/1/22 at 5:46 pm to
Ask if they gurantee 40 hours per week.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51688 posts
Posted on 9/1/22 at 6:59 pm to
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.
Posted by AUdime
Member since Oct 2012
777 posts
Posted on 9/1/22 at 7:31 pm to
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.
This post was edited on 9/1/22 at 7:36 pm
Posted by GrizzlyAlloy
Member since Aug 2020
1655 posts
Posted on 9/1/22 at 10:36 pm to
G40 bro.
Posted by WhiskeyThrottle
Weatherford Tx
Member since Nov 2017
5322 posts
Posted on 9/2/22 at 8:29 am to
quote:

No PTO I assume. You work or you don't get paid. Does that 35-50% make up for taking some time off?


The brief overview of benefits includes 14 PTO days and 6 holidays. Health care, 401k, and all that jazz that seems typical on most companies. Vacation will be something I negotiate for since I currently have something like 34 days off a year currently. It's a perk of being with the company for 16 years. I can cross that bridge once I get there.

quote:

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.


I've worked for my current company since I was 19. So it's the only "professional" environment I know of. I just hit my 16 year anniversary. It seems like my company lingers around the low end of the pay-scale compared to what the market offers. Not grossly under, but on the low side. Outside of the lowish pay, they've been a pretty fair company for the most part, and I have a low stress work environment. Stuff I have to take into consideration.

My biggest reason for wanting to change is my current company is clawing us back into the office. I've moved since we've been working from home, and it's a 2 hour round trip to and from work, and there's not any real reason they've mandated us back to the office outside of "butts in seats". We've also been acquired by a public company, and I have somewhat of a concern for the long term job security.
Posted by AUdime
Member since Oct 2012
777 posts
Posted on 9/2/22 at 12:12 pm to
quote:

The brief overview of benefits includes 14 PTO days and 6 holidays. Health care, 401k, and all that jazz that seems typical on most companies. Vacation will be something I negotiate for since I currently have something like 34 days off a year currently. It's a perk of being with the company for 16 years. I can cross that bridge once I get there.



If you're getting PTO, holidays and 401k matching and other decent benefits plus that bump in pay, then it really sounds competitive with a salary offer. I guess only difference is, I think, that by nature a contract job won't be as secure as a salaried full time employee position.
Posted by meansonny
ATL
Member since Sep 2012
25652 posts
Posted on 9/2/22 at 12:21 pm to
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.
Posted by Jag_Warrior
Virginia
Member since May 2015
4112 posts
Posted on 9/2/22 at 1:25 pm to
quote:

I guess only difference is, I think, that by nature a contract job won't be as secure as a salaried full time employee position.


Unless I didn’t read his posts correctly, this won’t be a contract position. I think he just mentioned contract as he spoke about what else was in his field. But maybe he can clarify.

Apart from giving up seniority and maybe some vacation, I don’t see much of a downside… especially in the IT field.

Side question for him: what sort of chances for advancement do you see at this new place versus your current employer?
Posted by BenDover
Member since Jul 2010
5424 posts
Posted on 9/2/22 at 2:38 pm to
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.
This post was edited on 9/2/22 at 2:41 pm
Posted by WhiskeyThrottle
Weatherford Tx
Member since Nov 2017
5322 posts
Posted on 9/2/22 at 2:44 pm to
You are correct. This is a full time offer.

The vacation is the biggest mental hurdle. I’ve negotiated for another week of vacation on another offer I got but didn’t accept. So we will see if they budge on this one.

On the room for advancement, that’s a question I’ll end up asking in the interview. The guy I spoke with was more of just a gate keeper/resume screener. Some very high level technical questions but nothing in depth.
Posted by WhiskeyThrottle
Weatherford Tx
Member since Nov 2017
5322 posts
Posted on 9/2/22 at 3:03 pm to
The role is a contractor for the government space. It is a role for a state department. When he said hourly I questioned him as to why it was hourly and he said that’s the way the hiring manager set it up.

I suppose my goal is going to be to get a minimum number of hours equal to my current salary. If I work less than I do now, that’s a win, and I’m no stranger to working long hours. Only difference is right now it’s not beneficial to work longer hours.
Posted by AUdime
Member since Oct 2012
777 posts
Posted on 9/2/22 at 3:27 pm to
I work in IT. All the hourly jobs and interviews I had were contracted through the recruiter/head hunter.
Posted by meansonny
ATL
Member since Sep 2012
25652 posts
Posted on 9/2/22 at 4:11 pm to
quote:

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.

I'm sure that you've seen "stuff" that I haven't.

But if you turn in a timesheet, then you are hourly.
If you don't turn in a timesheet, then you aren't getting overtime (what would they base it on?).

I have a base salary. Then that salary is divided by 52 and 40 at an hourly rate. I am a non-exempt hourly employee (even though the rate was determined backwards). My rate even fluctuated lower last year because they had 53 weeks in the calendar (salary divided by 53 and 40).
This post was edited on 9/2/22 at 4:13 pm
Posted by Jag_Warrior
Virginia
Member since May 2015
4112 posts
Posted on 9/2/22 at 4:11 pm to
Gotcha.
Posted by AUdime
Member since Oct 2012
777 posts
Posted on 9/2/22 at 5:25 pm to
If it's the same company signing the checks in both options, then they're probably bringing in freelancers all the time on jobs and it just comes down to the number of hours you want to work or be expected to work (assuming all that other benefit stuff is equal).

If the recruiter signs the hourly check but the actual company or state dept or whatever signs the salaried check, then that becomes a lifestyle and personality choice. Do you want to be a part of the team, or do you want to be a freelancer? And if it's this scenario, I would recommend asking if there's a Right to Hire clause in case you eventually want to move from contract to salaried.
Posted by BigD43
Member since Jun 2016
834 posts
Posted on 9/5/22 at 4:19 pm to
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?
Posted by deeprig9
Unincorporated Ozora, Georgia
Member since Sep 2012
64059 posts
Posted on 9/5/22 at 5:35 pm to
quote:

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?


You are competing with India and Mexico moreso now than ever. Same goes for OP in development.

I have been in the IT field for a Fortune 10 since 2008 and just when you think they are done offshoring resources, they offshore some more. SLA's, KPI's, and Cash Money. Oh, and AI bots that are opening, working, and resolving tickets in 4 seconds.
first pageprev pagePage 1 of 2Next pagelast page

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram