Hourly Vs Salary | Week 57

“Compensate your employees fairly, and they will make you rich.” – Bryce Ward 6/5/2021

Hourly or salary? That’s the big question when it comes to paying your employees. So what are the pros and cons of each method? What payment methods work best for employers, and which method works better for employees?


Salary employees have the benefit of being paid a consistent income regardless of the number of hours worked. So long as the job gets done, you get paid. However, the downside is that salary employees are not paid overtime. This may mean spending some extra time after the standard 9 to 5 hours to finish a project for a deadline. In positions that often go over 40 hours a week to complete a task, an employee’s best interest would be to get paid hourly. For employers, if a salaried employee is often working overtime on projects, then it would be in your best interest to offer benefits for that position. This could be a commission for reaching a sales target, paid vacation, stock options in the company, health insurance, or investments towards their retirement. Adding on these benefits for a salary position is to reward them for sticking with the company. Just be aware that salary employees tend to gain more stress from their job as salary positions tend to be in management or high skill level roles.


Unlike salaried workers, hourly workers are paid by the hour and can earn overtime if they exceed 40 hours in a workweek. Overtime pay is often 1.5 times the standard hourly pay. For example, if your standard pay is $20 per hour, then after 40 hours, overtime pay is applied, resulting in $30 per hour. Hourly pay works best for jobs that require daily production or need someone to operate a post. For example, blue-collar workers building machines on the assembly line or the cashier at your local supermarket. The main downside to hourly is that your pay is based on how many hours you work, resulting in inconsistent income. This may not be a problem for the line worker pulling 38 to 40 hour weeks, but for the cashier pulling 20 to 22 hours, they may require two jobs to afford their monthly payments.

Thank You!

Hey, thank you for reading this week’s post! I hope this week’s post was insightful for you. When it really comes down to it, money is a powerful influence on whether or not an employee continues to work for your company. Be sure to compensate your employees fairly, and they will keep making you money.

Thank you again for your time and for reading this post!

Have a fantastic day!


-Bryce Ward

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: