Hourly vs. Salary

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What is the reason for an employer to have some employees on hourly and some on salary?

For the employer, what are the advantages and disadvantages of the two?

What is it about a particular position that dictates which one the employer chooses?

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6 Answers

Anonymous 0 Comments

An hourly wage usually means a casual position. Usually the rate you are being paid here his higher than someone in the same role who has a salary.

However, a casual employee has no job security and has no leave entitlements, and can be let go at any moment. Businesses like these staff because they can use them when the work load is high, and then let them go when things are less busy.

Someone on a salary is paid slightly less, but this is compensated by having leave entitlements and job security.

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