Hourly vs Salary?

riptides · Dec 21, 2016

Seems to be a classic corporate acquisition move you are caught up in. To the corporation, they have analyzed that it is in their best interests to offer you an hourly job. They are in control of benefits, they are in control of time. Do not overlook that part. Both can be cut and controlled at their discretion.

I would think about the job, as offered, and approach it as if it were a new job offer to you. Forget what you have done as far as how it worked, and how you made it work. You are about to become a new resource in a new environment.

You have to make a decision based on your best interests and values. Best of luck, and attempt negotiations if you are serious about staying.

FWIW, my time is most important to me, I value where I am at and time as most important. Benefits, dollars and whatnot, are down the list. It's all about time and place.

Looking4new · Dec 21, 2016

I, to have worked both. Coming in at 11 and leaving at 1 with a 2 hour lunch as long as everything is done is great! lol
Working hourly in my opinion is way better. Punch in at 6 and leave at 4 and what you don't get done today either the night shift gets to do or it gets left for tomorrow.

George2615 · Dec 21, 2016

Our Hospital went through the same about 4-5 years ago. (We've PM'ed before) As you are in the Plant Operations (also known as Facilities Services, Maintenance, etc) You very rarely have direct patient contact. I've been in this field for 38 years, 31 plus 7 at a prev. hosp. Any departments such as these have a hard time trying to justify overtime (except for emergencies) since Administration is always watching the budget and asking for cuts in these departments. Salaried people are usually the first to get cut during buyouts / takeovers etc. since they are an instant savings without a waiting period. Taking the hourly offer may actually benefit you with fewer responsibilities, fewer hours, and less stress. I wouldn't count too much on getting a lot of OT for the reason I mentioned. The medical staff usually get the majority of OT without question.
I was in a similar position to you. I was salary and changes were being made. 14 years ago I was offered an hourly position or I could leave and due to my age at the time I took it and went hourly. I was able to bank my accumulated time and keep seniority. During the past 30 years I've seen many staffing and benefit cuts made, 99% of staff cuts were salaried. Our Hospital has almost tripled in size yet Physical Plant staff was reduced by more than 20%. This has pushed staff beyond their limits and created a huge dept. turnover. Most found similar positions elsewhere. I stayed and fortunately I was able to retire 8 months ago after 31 years with them.
If your are happy staying there, the hourly position may actually turn out better for you. You could look for other similar employment and basically have to start over. Positions like yours don't come up on a daily basis.
Best of luck with your decision.

Turbys_1700 · Dec 21, 2016

You have nothing to lose by staying. At least give it a chance. Worst case is the corporation limits overtime and your pay is hopefully equal to what you are now making. Worst case it is less and you can look for other employment. Corporations do this all the time. By shifting your labor cost from indirect to direct your position should be safer from termination if further consolidation occurs.

Gary Fowler · Dec 21, 2016

Converting to hourly from salary might be a shock. What are they going to use to establish your hourly pay. Will they take your weekly salary and divide it by 40 to establish your hourly rate or will it be a new rate established by the new owners (most likely). I have worked both sides. As a manager working salary and with all my direct reports working hourly, it is a bit disappointing to compare my pay to theirs when we were working 7days a week. However on some jobs my much higher salary was supplemented with OT when the job was working 70+ hours per week and it worked out great.
Many years ago, salaried jobs were just a way for the companies to get OT for nothing. I think some labor laws must have changed that because for the past 20 years or so, my salaried job was always paid for at least part of the OT that I had to work (might have been only 10 hours of the 20 that I worked but at least some was paid). At the same time, we were not allowed to just take off whenever we wanted even though we were salaried, we had to work our allotted times with just a little leeway for emergencies without docking our pay.

There is something to be said for both types. IF your job is a guaranteed 40 hour work week with no interruptions like weather to cut your pay then there really isn't much difference in salary vs hourly as long as benefits remain the same. In my work, it was vastly different benefits in salary vs hourly for vacation AND insurance compensation so that needs to be considered also

LD1 · Dec 21, 2016

Hourly vs salary really depends on how you handled salary.

I know a lot of salary people that can get all their normal weekly work load done in 35 hours. I know others that are salary and work 50-60 hours a week. Which means you are giving the company 10-20 hours of your time, and the only thing you get in return is not having to hassle with keeping time / time clock.

For me, I work 630 to 630.....12 hours a day. And I work 4-on 4-off. So while I am hourly, my pay is always the same per day/week/year. The difference is when overtime is needed. IF I was salary, what if I get called in on a day off? Or have to work over? But the benefit would be....what if I need to leave early?

Both have their benefits. But what is the hourly rate like? if you take the hourly rate and multiply by 40....is that about what your weekly salary is? IF so, going hourly might be a good thing. IF you are already working 50-60 hours a week.....that could make alot of overtime and you might make a lot more money than you ever have. However, it could also be a bad thing. Companies want to minimize overtime. Are they gonna expect you to get your current workload completed in 40 hours? Perhaps that will look bad that it takes you 20 hours a week of OT to get your work done. Maybe they will hire someone else and cut you back to 40?

ustmd · Dec 21, 2016

Having worked both ways and having managed hourly employees for the last 15 years, a lot will depend on how the company runs the budget.

You need to look up the pay/OT rules for your specific geographic location. For example, in Texas, OT (time & half) only kicks in when you work more than 40 hours within the company defined 7 day pay period (so you could work 20 hours 1 day, 20 hours the next and it would all be at straight time) and you never are eligible for double time and there are no special pay for working Federal or state holidays. In other locations, OT happens when you hit 8 hours in a given day and double time kicks in after 12 hours in a day or 60 hours in a week.

One of two things will happen:

1. You will be told do your 40 hours in week (around a standard schedule) and then go home. What gets done, gets done. What doesn't get done, doesn't get done.

2. You will be done to keep going on like you have been and let the chips fall where they may.

ovrszd · Dec 21, 2016

riptides said:
Seems to be a classic corporate acquisition move you are caught up in. To the corporation, they have analyzed that it is in their best interests to offer you an hourly job. They are in control of benefits, they are in control of time. Do not overlook that part. Both can be cut and controlled at their discretion.

I would think about the job, as offered, and approach it as if it were a new job offer to you. Forget what you have done as far as how it worked, and how you made it work. You are about to become a new resource in a new environment.

You have to make a decision based on your best interests and values. Best of luck, and attempt negotiations if you are serious about staying.

FWIW, my time is most important to me, I value where I am at and time as most important. Benefits, dollars and whatnot, are down the list. It's all about time and place.

This is the most direct and informative post in this thread. To the point. No "war stories". Simple logic. Well done riptides. :thumbsup:

roadhunter · Dec 21, 2016

Seems like it might end up being good. Too many mid level folks are put on salary and expected to work a lot of hours. I know recently the salary threshold increased to help fix the problem.

But I'm sure it will be frustrating having to punch a clock and what not after you have gotten used to so much freedom. You sound like a really valuable member of the team so take advantage of the opportunity during the transition. Employees like you can make transitions go so much smoother if you are there.

polo1665 · Dec 21, 2016

One big factor to me would be whether or not there was a union involved. Nothing against a union, but I be more on guard if one was present.
Also.............getting overtime pay as a salaried employee is not unheard of. I am a salaried employee and am paid for my overtime (1.5x for anything over 8 hours per day and Saturdays. 2x for Sunday and holidays). No clock punching, fill out a time card once per week.