salried managers

[bodegahwy]

So here is a question. Has anyone transitioned from salaried to hourly - how did it go?

Read through this thread and the increasing compensation thread. Several of us did this and it is mentioned above. for my part, it went fine and I have never looked back.

 

[MrHowie]

Agree with most of what is here. I have 2 that are on “Salary”, essentially, I pay them for 40 hours wether they work it or not. One of them I come out pretty even on, the other not so much. I offered it to him a long time ago because he was struggling with time with his daughter and working. So he would end up working 60 hour one week and 20 the next. It wasn’t working so I figured this would benefit both of us. It did for a while, but anymore I don’t think so. I suggested taking him off of it and told him he could get as much overtime as he wanted. He quickly changed the subject. Long story short, I wouldn’t do it again. It was all because I was so afraid of overtime, I rarely let anybody get over 40 hours a week anyways. I have realized over the last few years, somebody that is working 60 hours is way more valuable to me than somebody that works 20. They are generally worth the time and a half. I typically have around 30 hours of overtime pay on payroll between my employees and my labor isn’t any higher.

 

[bodegahwy]

They are generally worth the time and a half.

Absolutely. People over-think this a lot and shy away from the OT. Check out this math:

40 hours @ $12 = $480
10 hours @ $18 = $180
Total earnings = $660

$660 / 50 hours = $13.20 per hour!

So letting a solid 40 hour a week person go to 50 hours with OT amounts to a raise of $1.20? Seems like a good deal to me!

 

[314]

I guess I will have to evaluate this when and if any laws force me but I have almost all of my management staff on salary. The GM’s are paid on a flat hourly rate of wage x 50 but their average work week is seldom over 45 so I guess I am paying them more than if I was just on hourly with OT. I do have 1 guy who works a real 50 so I am probably guilty of “screwing him” but I had to move him to salary because he was pushing a 5o hour week into 60 because whats the difference if you clock out at 3am vs 5am.

So my question would be how to hold that person accountable at the end of a closing shift when I am closer to getting out bed than being up at that hour to see what the issue is. Since I moved him he is off and done by 2:45 so somehow the salary function made him more productive?

I do pay my assistants extra when they push over 40 which their salary is based on but maybe I need to look at this again. I just came from the mentality that worrying about OT pay vs putting in the effort to maximize profits and get that fat bonus which was way way bigger than the OT I could have earned and so as an owner I have treated it the same way. It is true that Millennials are confused by all of it OT and Salary - they are more concerned with having an OUT TIME on the schedule and for me I don’t know how to win that battle since this is a “rush” business.