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Old 06-15-2018, 06:48 PM   #1
brnhtown
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Default Hourly VS Salary

So I'm sure there has been threads like this in the past, I couldn't find much info on the subject so here we go.

I've always been an hourly employee, today I applied for a salary job. The position is a pay increase as far as base pay but I'm going to take a pay cut as far as losing my OT. Of course, if I am selected for the position. How do you negotiate as far as trying to make up for some of the OT that will be lost? I could see it being around $10k-$15k paycut
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Old 06-15-2018, 06:59 PM   #2
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Tell it like it is. They'll understand (but not necessarily agree)
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Old 06-15-2018, 07:00 PM   #3
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Give us some additional information, will you still be expected to working a full day- every day? i.e. no liberties when the work is slow?

Value of some extra time away from work for family, and still get paid?

Weekend work?

Overtime=comp time?

Union now? No representation afterward?
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Old 06-15-2018, 07:01 PM   #4
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Friend went through this recently. I'm not sure where he heard it from but he was told to ask for the average of the last 5 years tax return. He came from a position with lots of OT
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Old 06-15-2018, 07:10 PM   #5
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I had this exact situation happen. I was working hourly and averaging about 48 hours a week. I got offered a promotion that was essentially a job that was grooming me for the next step in the company. I said I was interested in moving to that role but when they told me the salary it was just as you described. I would be losing about $10,000 per year. I simply told my manager that while I was eager to start the new position I could not take the hit financially. Since my current position was a dead end and they wanted to keep me around, they asked what I made the previous year including OT and put my salary a few percentage points above that.
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Old 06-15-2018, 07:15 PM   #6
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If you are comparing your current pay with overtime to you proposed pay at 40 hours per week thatís not a fair comparison.

Iíll tell you I went salary many years ago and wouldnít want to go back to hourly. Itís nice knowing I donít HAVE to work the overtime to make the same or more money.


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Old 06-15-2018, 07:15 PM   #7
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Originally Posted by Razorback01 View Post
Give us some additional information, will you still be expected to working a full day- every day? i.e. no liberties when the work is slow?

Value of some extra time away from work for family, and still get paid?

Weekend work?

Overtime=comp time?

Union now? No representation afterward?
I will still be expected to work a full day, leaving early is not a problem to balance out the times I will work later. Schedule is Mon-fri, 8hr work day. Some travel around tx but that is very limited. Will be home every night. NO union
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Old 06-15-2018, 07:16 PM   #8
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Originally Posted by doublearrow View Post
Friend went through this recently. I'm not sure where he heard it from but he was told to ask for the average of the last 5 years tax return. He came from a position with lots of OT
this sounds fair
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Old 06-15-2018, 07:17 PM   #9
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Quote:
Originally Posted by doublearrow View Post
Friend went through this recently. I'm not sure where he heard it from but he was told to ask for the average of the last 5 years tax return. He came from a position with lots of OT
My boss came to me with this proposal. He regretted it when he actually pulled the average, lol. But he stuck to it. I like knowing that my pay check is the same no matter what, Dr. appt., rain, etc.....
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Old 06-15-2018, 07:18 PM   #10
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I had this exact situation happen. I was working hourly and averaging about 48 hours a week. I got offered a promotion that was essentially a job that was grooming me for the next step in the company. I said I was interested in moving to that role but when they told me the salary it was just as you described. I would be losing about $10,000 per year. I simply told my manager that while I was eager to start the new position I could not take the hit financially. Since my current position was a dead end and they wanted to keep me around, they asked what I made the previous year including OT and put my salary a few percentage points above that.
this sounds about right for me. Most of the times on a bi weekly check I have 10-20hrs OT. But there are plenty of times I have way more than that. Taking a pay loss, really makes it not seem like a promotion
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Old 06-15-2018, 07:19 PM   #11
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I was asked once what my thoughts were on going to a salary pay for same job I was doing hourly

I said I was not interested in working more hours for less pay as any overtime would be lost. I was told that they would factor overtime worked the past year into the salary number.
Told them that would not help me because I had worked 0 overtime in past year. Told them I did not want overtime
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Old 06-15-2018, 07:20 PM   #12
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Originally Posted by Mike D View Post
If you are comparing your current pay with overtime to you proposed pay at 40 hours per week thatís not a fair comparison.

Iíll tell you I went salary many years ago and wouldnít want to go back to hourly. Itís nice knowing I donít HAVE to work the overtime to make the same or more money.


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You're right for sure, I understand I wouldn't be working the same hours as before. I'm just trying to figure out how to try and close the gap on the pay loss some.
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Old 06-15-2018, 07:21 PM   #13
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Originally Posted by brianlg31 View Post
My boss came to me with this proposal. He regretted it when he actually pulled the average, lol. But he stuck to it. I like knowing that my pay check is the same no matter what, Dr. appt., rain, etc.....
for sure, makes budgeting things a lot easier, I imagine
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Old 06-15-2018, 07:25 PM   #14
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I will still be expected to work a full day, leaving early is not a problem to balance out the times I will work later. Schedule is Mon-fri, 8hr work day. Some travel around tx but that is very limited. Will be home every night. NO union
I'm expected to work a full day, unless it's slow. My normal day is @0530 to @1400 in the office, and VPN remote until @1700. I can grab couple hours here and there for something I need to do, but I also work a few Saturdays and Sundays throughout the year not to mention travel throughout the year. My manager doesn't keep up with it, and I try to fairly balance it.

Are you union today in your hourly position?
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Old 06-15-2018, 07:31 PM   #15
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I'm expected to work a full day, unless it's slow. My normal day is @0530 to @1400 in the office, and VPN remote until @1700. I can grab couple hours here and there for something I need to do, but I also work a few Saturdays and Sundays throughout the year not to mention travel throughout the year. My manager doesn't keep up with it, and I try to fairly balance it.

Are you union today in your hourly position?
the company I work for is very laid back in terms of handling personal business when things are slow. Almost to laid back, at times. Great company and a lot of very good people. No union at all
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Old 06-15-2018, 07:36 PM   #16
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Originally Posted by BTLowry View Post
I was asked once what my thoughts were on going to a salary pay for same job I was doing hourly

I said I was not interested in working more hours for less pay as any overtime would be lost. I was told that they would factor overtime worked the past year into the salary number.
Told them that would not help me because I had worked 0 overtime in past year. Told them I did not want overtime
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Old 06-15-2018, 08:17 PM   #17
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Without more information I would also consider some of the more intangible aspects. Is the role any different(more or less appealing to your satisfaction), does salary come with any perks like increased vacation, bonus, 401k, stock options, etc, does taking the role offer more opportunity for advancement within the company?

There are lots of things to consider when trying to decide this. I can’t speak for all situations, but I am in a similar hourly role that makes significant overtime. If I was offered a salary position that meant I lost OT, I would gladly take it if it was not a significant paycut.
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Old 06-15-2018, 08:32 PM   #18
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It really depends on the salary. My base/hourly rate is pretty good and I work a lot of OT, not really by choice though. I try to stick to 40. I like getting paid for the hours I work. If I could get a bump in salary, and only work 40, I'd be all over it. If I had to continue to work overtime I would pass. Just my opinion though. With my company if I want to move up I'll have to accept a salary role, but I'll cross that bridge when I get there.
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Old 06-15-2018, 08:34 PM   #19
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Generally speaking, moving from hourly to salary can be challenging in terms of $$ only. But, it often comes with added responsibility, upward potential, higher bonuses and greater flexibility in terms of hours.

Lots of things to consider and only looking at the $$ can be short sighted.
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Old 06-15-2018, 08:37 PM   #20
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Depends on the salary and what the long term prospect is for moving to the salaried role is. If it is a step up professionally with growth potential then to me $10-15k for 1-3 years isn’t that bad depending on what the return looks like.

Also think about he extra time with your family and what that is worth to you
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Old 06-15-2018, 08:47 PM   #21
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Originally Posted by be12hunt View Post
Without more information I would also consider some of the more intangible aspects. Is the role any different(more or less appealing to your satisfaction), does salary come with any perks like increased vacation, bonus, 401k, stock options, etc, does taking the role offer more opportunity for advancement within the company?

There are lots of things to consider when trying to decide this. I canít speak for all situations, but I am in a similar hourly role that makes significant overtime. If I was offered a salary position that meant I lost OT, I would gladly take it if it was not a significant paycut.
There are no added perks to the job as far as benefits or vacation. The job would offer more opportunity to advance in the future. I find the job very interesting and something I think I would enjoy doing but I also enjoy the job I have now. So even if I don't get the job, I'm perfectly fine continuing the job I have now. I am fine with a pay cut to an extent, I understand I wouldn't be working the same hours I do now but not willing to lose a whole heck of a lot
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Old 06-15-2018, 08:49 PM   #22
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It really depends on the salary. My base/hourly rate is pretty good and I work a lot of OT, not really by choice though. I try to stick to 40. I like getting paid for the hours I work. If I could get a bump in salary, and only work 40, I'd be all over it. If I had to continue to work overtime I would pass. Just my opinion though. With my company if I want to move up I'll have to accept a salary role, but I'll cross that bridge when I get there.
I understand, I am at the point where If I want to move up it will pretty much have to be salary. I've already promoted through the other positions and running out of options as far as advancement. I can still grow with pay and such but as far as continuing to advance my career, I'm limited
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Old 06-15-2018, 08:57 PM   #23
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Sorry if I missed this in a post above I didn't read but for me it would greatly depend on the industry you are in. I would say that salary positions would have a higher ceiling than hourly positions however it might take time for the salary position to get ahead.

I work in construction and when I was a laborer I was always making more per week with my OT than some of the assistant superintendents and assistant project managers which are salary positions. I took a pay cut to become a PM but I got better benefits and within a couple years I was ahead and now I am making almost triple even if I would have figured in raises and 20 hrs or OT as a laborer.
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Old 06-15-2018, 10:40 PM   #24
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Sorry if I missed this in a post above I didn't read but for me it would greatly depend on the industry you are in. I would say that salary positions would have a higher ceiling than hourly positions however it might take time for the salary position to get ahead.

I work in construction and when I was a laborer I was always making more per week with my OT than some of the assistant superintendents and assistant project managers which are salary positions. I took a pay cut to become a PM but I got better benefits and within a couple years I was ahead and now I am making almost triple even if I would have figured in raises and 20 hrs or OT as a laborer.
I'm in the pipeline industry and yes, the ceiling for salary is significantly higher for the long run as far as base pay.
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Old 06-15-2018, 10:41 PM   #25
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Originally Posted by hooligan View Post
Depends on the salary and what the long term prospect is for moving to the salaried role is. If it is a step up professionally with growth potential then to me $10-15k for 1-3 years isnít that bad depending on what the return looks like.

Also think about he extra time with your family and what that is worth to you
very true, projects have been slow lately and I have been fishing with my kids and family a lot here in the last few weeks. Man, has it been nice! I could get used to a 40hr work week
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Old 06-15-2018, 10:48 PM   #26
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My office manager manner during myself set down and talked about this this year. She worked a lot of overtime last year. Her sour was great. We switched her to a salary based position this year. It seems to have worked well. She does still work quite a bit but I believe it is more efficient.
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Old 06-15-2018, 11:02 PM   #27
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My office manager manner during myself set down and talked about this this year. She worked a lot of overtime last year. Her sour was great. We switched her to a salary based position this year. It seems to have worked well. She does still work quite a bit but I believe it is more efficient.
W t f did you just say?
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Old 06-15-2018, 11:03 PM   #28
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When my company asked me to come in to the office they initaionally tried to pay me what I was making in the field, but I lost my company truck.
After discussing how I was getting screwed they matched what I was making with overtime and gave me a truck allowance and yearly bonus.
I now make more than double what I made in the field.
I would recommend discussing your terms now instead of waiting.
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Old 06-16-2018, 07:12 AM   #29
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I took a pay hit to come to my current position, but it was absolutely worth it. I was working 70-90 hour weeks hourly before this, and currently 35-45 hour weeks at only a 10-15% pay cut. I see the house every night except when I’m traveling, which is at my own discretion. I have more responsibility now, but it takes less time to accomplish. I wouldn’t trade it at all. I’m about 3 years in now, and my current salary is about where I was hourly though. It sure is nice having that constant check though.
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Old 06-16-2018, 09:55 AM   #30
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W t f did you just say?
I was curious as well lol I think he was using tapatalk
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Old 06-16-2018, 09:56 AM   #31
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Originally Posted by Rubi513 View Post
When my company asked me to come in to the office they initaionally tried to pay me what I was making in the field, but I lost my company truck.
After discussing how I was getting screwed they matched what I was making with overtime and gave me a truck allowance and yearly bonus.
I now make more than double what I made in the field.
I would recommend discussing your terms now instead of waiting.
good idea, I first have to get the job offer, then I will discuss terms
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Old 06-16-2018, 09:58 AM   #32
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I took a pay hit to come to my current position, but it was absolutely worth it. I was working 70-90 hour weeks hourly before this, and currently 35-45 hour weeks at only a 10-15% pay cut. I see the house every night except when Iím traveling, which is at my own discretion. I have more responsibility now, but it takes less time to accomplish. I wouldnít trade it at all. Iím about 3 years in now, and my current salary is about where I was hourly though. It sure is nice having that constant check though.
After looking into this, I believe you are right. So many people enjoy the salary rather than hourly pay. I think its just the fear of the unknown for people who have been hourly for their whole career.
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Old 06-16-2018, 10:15 AM   #33
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With the company I work for, an hourly/union employee moving into a basement salaried job will be paid about what his base pay was as an hourly employee. Some jobs are paid OT and some are not. If not, I would lose 30-40K in OT. If this person was in for the long haul he/she could move up the ladder and be far ahead in a few years and not have to work nights/weekends to make it. Not wanting to go salaried, I am topped out salary wise save for the yearly bumps which salaried also get.
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Old 06-16-2018, 10:45 AM   #34
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Tell them you will do it if they make you salaried non-exempt...You get paid for a 40 hour week whether you work 40 or not but do get paid for overtime.
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Old 06-16-2018, 10:52 AM   #35
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If you are hourly, this is how you should do it. Overtime pay is not technically part of your wage- what I mean is you get an hourly rate for working so many hours a week, generally 40. Overtime is to pay you if there is something extra going on where you will have to work over or asked to fill in for someone who is sick or on vacation. Learn to live on that. If you want to buy you or your wife/girlfriend something nice or go on vacation or pay for a hunt work overtime to pay for it. Remember this also, working overtime is great...making all this money...until God forbid your wife decides to divorce you and all that extra money is used to help figure spousal support.
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Old 06-16-2018, 10:54 AM   #36
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Tell them you will do it if they make you salaried non-exempt...You get paid for a 40 hour week whether you work 40 or not but do get paid for overtime.
that would be nice but I don't believe they do that where I work.
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Old 06-16-2018, 10:56 AM   #37
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If you are hourly, this is how you should do it. Overtime pay is not technically part of your wage- what I mean is you get an hourly rate for working so many hours a week, generally 40. Overtime is to pay you if there is something extra going on where you will have to work over or asked to fill in for someone who is sick or on vacation. Learn to live on that. If you want to buy you or your wife/girlfriend something nice or go on vacation or pay for a hunt work overtime to pay for it. Remember this also, working overtime is great...making all this money...until God forbid your wife decides to divorce you and all that extra money is used to help figure spousal support.
I budget very well and the OT pay is not a necessity, with that being said, I don't want to lose that extra money either. I'm fine with a slight pay cut but not 15K a year
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Old 06-16-2018, 01:34 PM   #38
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I budget very well and the OT pay is not a necessity, with that being said, I don't want to lose that extra money either. I'm fine with a slight pay cut but not 15K a year


You are only looking at the short term. Youíve already said you are basically topped out in an hourly position. If you have more opportunity to take the salary position that is a no brainer IMO.


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Old 06-16-2018, 02:10 PM   #39
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Look into the bonus structure if there is one. Where I work the salary folk get a much larger bonus to compensate for the lack of OT. It still doesn’t make up for it, but it gets them close plus they have desk jobs
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Old 06-16-2018, 02:23 PM   #40
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I'm salary + overtime, so I have the best of both worlds. I used to be salary and chaffed at how many hours I was often expected to work past 40. While I took a pay-cut for salary/overtime, I'm often doing 91 hour weeks, so I make about twice as much.

Last edited by sir shovelhands; 06-16-2018 at 02:25 PM.
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Old 06-16-2018, 02:30 PM   #41
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We never got overtime when we were hourly they switched to salaries no we have it all time
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Old 06-16-2018, 06:13 PM   #42
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It’s hard to give up overtime. I would try to stay on hourly plus O.T.
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Old 06-17-2018, 11:09 AM   #43
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You are only looking at the short term. Youíve already said you are basically topped out in an hourly position. If you have more opportunity to take the salary position that is a no brainer IMO.


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I'm not topped out in the pay scale, I meant that I'm out of promotions or advancement in the hourly jobs. Any step for a promotion for me would have to be a salary job. If I was topped out in pay then yes, no brainer, of course
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Old 06-17-2018, 11:10 AM   #44
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Look into the bonus structure if there is one. Where I work the salary folk get a much larger bonus to compensate for the lack of OT. It still doesnít make up for it, but it gets them close plus they have desk jobs
this is something I found out recently, the exempt employees get a better bonus than the non-exempt employees. So yes, it should help get the pay close or break even. Thanks for the suggestion
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Old 06-17-2018, 11:11 AM   #45
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We never got overtime when we were hourly they switched to salaries no we have it all time
funny how it works like that huh? jk of course
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Old 06-17-2018, 11:13 AM   #46
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Itís hard to give up overtime. I would try to stay on hourly plus O.T.
yes it is, I still have another 30+ years of working, so I have plenty of time to advance. I enjoy having these options though
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Old 06-17-2018, 11:17 AM   #47
Mike D
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I'm not topped out in the pay scale, I meant that I'm out of promotions or advancement in the hourly jobs. Any step for a promotion for me would have to be a salary job. If I was topped out in pay then yes, no brainer, of course


What can you expect your annual salary increase to be at hourly? Typically itís 3-5% at best in my market so you are barely covering annual inflation.


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Old 06-17-2018, 11:23 AM   #48
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So I'm sure there has been threads like this in the past, I couldn't find much info on the subject so here we go.

I've always been an hourly employee, today I applied for a salary job. The position is a pay increase as far as base pay but I'm going to take a pay cut as far as losing my OT. Of course, if I am selected for the position. How do you negotiate as far as trying to make up for some of the OT that will be lost? I could see it being around $10k-$15k paycut
how do the hours compare?
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Old 06-17-2018, 11:24 AM   #49
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What can you expect your annual salary increase to be at hourly? Typically itís 3-5% at best in my market so you are barely covering annual inflation.


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I would imagine it would be close to the same where i'm at
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Old 06-17-2018, 11:27 AM   #50
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how do the hours compare?
the salary job is pretty much per week with some maybe a few extra here and there. My hourly job as a pipeline foreman gets pretty crazy at times, I work a significant amount of OT
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