Want to improve this question? Salary jobs come with the benefit of knowing exactly how much you get paid week after week. It encourages healthier student athletes. Furthermore, the office culture may pressure salaried employees to overextend themselves in order to compete with colleagues. For example, if you pay them €/£/$7.50 per hour for 37.5 hours a week, you would multiply this by 52 weeks to get their annual gross salary of €/£/$14,625. Such non-exempt workers are responsible for recording their hours worked. Fact Sheet #17A: Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the Fair Labor Standards Act (FLSA), Final Rule: Regular Rate under the Fair Labor Standards Act. They are entitled to collect time-and-a-half (1.5 times their regular hourly pay rate) for every hour worked over the standard 40-hour workweek.. Wage equality has come a long way in the last few decades, but the hard truth is that it still has a long way to go. By openly sharing information regarding compensation, your business is encouraged to create fair pay, as employees help to hold the business accountable. The pros and cons of salary pay can help both employers and employees when all of these key points are addressed. "Overtime Pay," Accessed Dec. 18, 2019. Yes, someone is going to need to create the salary structure and align current jobs and employees to grades. What Are the Potential Pros of Implementing a Salary Cap? Employers are looking for skilled workers and professionals who not only are qualified, but will also fit into their organization. Mary Hope Kramer is a former writer for the The Balance Careers covering animal-related jobs. This means workers on salary must be fiscally responsible with their budgeting to maintain financial health. There are several ways for employees to receive compensation for tasks completed. According to the U.S. Department of Labor's Wage and Hour Division, employees considered "exempt" must satisfy the following requirements, depending on the type of exemption:. Pros and Cons for Charities of Adopting Salary Ratios. However, there is a lot more to an effective reward system than these measurable details. They must have the authority to make significant decisions independently. Even though productivity might be of slightly lower quality, the cost savings from the lower salary will make up for it. In the US, this would mean a salary package of $50,000 might actually only provide a paycheck salary of $35,000 to the employee. The advantages of salaried employment for your employees may outweigh the disadvantages of a salaried position, though. Paying college athletes for their participation in sports eliminates the need for them to find outside employment to support themselves. According to a Department of Labor doctrine known as the Fair Labor Standards Act (FLSA), hourly employees eligible for overtime are classified as "non-exempt," while hourly workers ineligible for overtime pay are classified as "exempt." There are pros and cons to including salary information in a job advertisement or job description. Pay & Salary. Pros Paying an employee a salary vs. hourly wages has both pros and cons. In addition, every £100 extra paid into your pension savings is subject to a 20% top up from the government’s basic tax rate (£20) contribution, which in total is 25% of the £80 you originally put in. Hourly cons. August 24, 2017. List of the Pros of Paying College Athletes. U.S. Department of Labor. In some cases, salaried employees can be eligible for overtime. Career Guide / Pay & Salary / Pros and Cons of the Pay-For-Performance Model. This question needs to be more focused. 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