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Alina Z. | Jul 15, 2022
Salary employment or hourly contracts?
A question that leaves everyone wondering whether their career choice and work model are right for them. While the number of full-time salary employees continues to rise in 2022, hourly workers comprise over 58% of the total employment figure in the US.
Traditional work models no longer hold the same significance in this digital age. While salary-based jobs are necessary, hourly contracts can be more rewarding in terms of the money you make and the time you invest.
So here's everything you need to know about hourly vs. salary wage and find out the benefits of hourly contracts that make them more appealing than full-time salary employment.
Now without further ado,
Let's begin!
A salary refers to an agreed payment made to someone who works in a job. Usually, your employer will agree that this is what they pay monthly, bimonthly, or yearly. In any case, your salary will come in as a consistent paycheck at the same time each month with a fixed amount.
As the name suggests, hourly employment is what your employer will agree to pay for every hour you spend working. Typically, hourly wages can be rounded off to the nearest 30 minutes as well, so you don't miss out on that extra time you worked for.
It's not that salaried employment doesn't offer any benefits. Salary-based work offers more employee benefits than contractual work, such as retirement, healthcare, and childcare costs.
Then why are hourly contracts better for some people? It's because hourly jobs typically pay higher hourly rates and are flexible. The biggest perk here is hourly contracts are often entitled to overtime pay while salary employment is usually not.
Let's look at the 6 benefits of hourly contracts over salary-based employment to get a better idea.
If you have been working in any job, then you would know how much money you make per hour is only half the battle. What makes hourly contracts different from salary jobs is that they give you options to increase your payments whenever you want.
If you need the extra cash, just ask your employer for more hours and go above and beyond your assigned tasks to get paid. There is no ceiling if you work hard enough, so don't let low wages hold you back!
Sometimes life happens. You could end up in several unforeseen situations. While this may sound unlikely at first, it's not uncommon.
You must have heard stories about someone getting laid off because of a personal life situation and losing their entire income. This is where hourly contracts are the most beneficial. Your employer knows they are paying you for the time you spend on work, and you can always make up for the lost time, so taking time off is a lot easier.
Salary jobs have set hours that you must follow. If you miss them, you'll face the consequences. But with hourly work, you generally have much greater flexibility in your work schedule.
That’s because most of these jobs are results-oriented. So as long as you’re delivering the required deliverables timely and within the given deadlines, you’d be good to go.
Like it or not, it's quite common for full-time jobs to keep you at work for extra hours without getting paid extra. Working for an organization means getting involved in extra tasks at any moment.
In most cases, that extra 30 minutes every day is never included in your paycheck, which means you're losing your time and money. Hourly contracts allow you to make money for all the time you invest working for an employer.
Still, there's the drawback of your boss cutting back on hours at any time. However, you can have more control over your own income than a salaried job and even start a side hustle to increase your savings.
Dealing with stress and deadlines is a huge hindrance to earning money. When you're salaried, you have to manage your workload, meet deadlines and achieve company goals.
Hourly contracts can set up your work in a less stressful environment since you don't have to worry about justifying your paycheck. You can focus on the task at hand without worrying about organizational goals, team dynamics, and meeting expectations all the time.
Hourly positions generally allow you to determine your own pace. If you're interested in learning a specific skill or industry, you can dedicate as many or few hours as you'd like.
This creates more opportunities to explore a variety of careers and industries that you may not have considered before. Leaving a job is also easier if you don't enjoy it.
Applying for hourly jobs might be a hassle, but several platforms can help you connect with companies looking for your services.
In the end, which employment method suits you better will depend on your individual circumstances. Salary work can be a better option for people who enjoy permanent jobs with consistent paychecks.
However, knowing your prospects before making a decision is always important.
If you have decided to pursue hourly contracts and are looking for an opportunity, sign up at Wrkio to stay updated with the latest job listings in several industries and find your dream job immediately.
