Payroll vs. Retainer vs. Hourly

Peyrol vs. Retainer vs. Hourly

Project companies like LET ME often work with employees that perform under different payment conditions.
One of the most important is whether you will offer them a salaried or hourly position.
Salaried employees are usually paid the same amount based on their total salary. On the other hand, the hourly worker earns a set payment for each hour they work. For example, if they make $20 per hour and work eight hours daily, they would earn $160 for that day (before taxes).
There are pros and cons to both options. 
Consider these factors to determine whether salary or hourly pay is right for you (whether you are the employee or the employer).
When Hourly Pay Works Best:
Hourly employees can significantly ratchet their weekly pay by lobbying for extra hours. After all, employers naturally wish to give additional hours to their hungriest staffers (of course, only if it is relevant and has its goal). 
Salaried employees are not eligible, in some cases, to collect overtime pay when they work weekends and late nights to accomplish significant projects in most cases. Furthermore, the office culture may pressure salaried employees to overextend themselves to compete with colleagues. In other words, salaried jobs can be significantly more stressful than hourly jobs.
When Salaries Work Best:
Salaried employees enjoy the security of steady paychecks and tend to pull in higher overall income than hourly workers. They typically have greater access to benefits packages, bonuses, and paid vacation time.
Some companies keep costs down by disallowing hourly employees from working overtime. Hourly employees can sometimes fall short of their traditional 40-hour workweeks if the business is slow and they are dismissed early.

The Bottom Line:
Whether workers prefer an hourly or a salaried position largely depends on their temperament and personal working styles.
While some workers favor the security of a regular paycheck, others prefer knowing when they’ll clock out at the end of the day and delight in earning extra pay for working overtime hours.

The Second Bottom Line (For Employers):
It worth understanding where are your and your employee’s risks are. Whether it is the non-consistent capacity, the ability to be on vacation (paid or not), the spread of working hours (most important with international and cross-ocean teams), etc.

The best way is to find the preferred for both sides. The employee and the employer must feel that the agreed situation is fair and desirable. That both sides are getting the needed added value. And yes, it isn’t about money in all cases. Remember it as an employee!

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