It is quite common in the construction and cleaning industries to pay employees on an hourly basis. However, when you’re just starting your business, or hiring new employees, you may choose to explore your options before coming to this decision. So, what exactly do you need to look at to determine if you should pay an employee on an hourly basis or with a salary?
- The consistency of the work and hours – in many industries and positions, it is typical for an individual to work 9am to 5pm on a regular basis. In other roles and industries, there may not always be work available; or at times, employees may be needed to work longer hours. In these instances, it is easier to pay employees by the hour that way they are compensated for the work they do without any additional complication. A time and attendance system can help you keep track of the times that they work.
- Outside responsibilities of employees – if your employee has a job that requires them to do some tasks when they are away from work, then a salary is the only way to ensure that they are appropriately compensated.
- The job classification – if the employee is in an executive or management position, then it is customary to compensate them by paying them a salary.
Are you an entrepreneur, or do you work in HR? If so, we’d like to know more about how your business decides who to pay hourly and who to put on salary!
