Staff salary vs hourly

[Pennine Ploughing]

Easy way for it, is to add up what he got last year, divided by 13, yes 13 not 12,
Pay that amount each month for the year, and that's his pay,

Now the balancing process to this is,
Time sheets in each week as before, hours on a running total,
Reference periods of 3 months, 4 months or 6 months,
6 months works best for most, 1st of June and first of November, with adjustment made in pay end of same month,
So if on 50 hours a week for 6 months = 1300 hours.
Say he worked 1402 hours, then he gets 102 hours overtime extra in Reference pay ,

 

[Sid]

How petty

Maybe 20 hrs a week during dry period 60 hrs during other time
20x12x8 =£1920
60x12x8=£5860
Under paid or over paid by £3840.

They were probably underpaid during calving when hours are longer? It all balances out

There is . Imagine them walking just as calving starts. Seems alot of people wouldn't mind if a staff member walked away with £4k worth of kit

 

[betweenthelines]

Only works when there's trust on both sides and nobody keeps track of hours.

At one time my then boss put one chap on salary, within a month he was saying he was "owed" x hours.

When I was put on salary, the boss just said "You know what needs doing, as long as it get done, I don't care if I hardly ever see you."

That's the attitude that's required.

 

[kp_n_plghng]

What was the consultants reasoning? @Devon lad

 

[An Gof]

Over paid for 2 months when cows dry, then up and walks how do you get that money back?

Do you understand what a salary is?

 

[frederick]

I think a salary is probably only really relevant if your paying significantly above the minimum wage.
It might be useful now if you think this person has hopefully got a long term future with you in which case you could join offering the salary with a 10-20% pay rise.

 

[Dead Rabbits]

We pay pretty much everyone here on salary. If we don’t they can’t afford to live between paychecks as hours reduce after calving.


During calving we do pay hourly after a certain number hours are achieved in a pay period. So everyone clocks in and out. I just get paid salary.

 

[Will 1594]

I can't see how it works in farming, in other industries salary is for a set amount of work equivalent to say 35 hours per week overtime is still available.

Your wanting to average his hours from say minimum of 25 per week to max of 100 and pay him the average every week.

Best bet maybe pay him set hours every week, the quiet weeks use a days holiday to build hours up? Atleast then on the busy ones he feels the benefit?

Why should he take a days holiday when quiet ,
cannot havebit both ways ,
you average his last 2 /3 years ,and pay monthly , and any hours over agreed amount you pay at overtime rate

 

[betweenthelines]

Why should he take a days holiday when quiet ,
cannot havebit both ways ,
you average his last 2 /3 years ,and pay monthly , and any hours over agreed amount you pay at overtime rate

That's not salary, that's just another way of calculating wages based on an hourly rate.

Salary (ie a fixed amount per year regardless of hours worked in a day/week/month) is a way of showing you trust the employee. Define what the "job" is and what it entails and let the guy get on with it. Nothing more disheartening that the boss "finding you something to do" in a quiet time/when it's peeing down etc just because "I pay you until 5 o'clock so I'll make sure you work till 5 o'clock."

If you pay someone to milk your cows twice a day, five days a week, what difference does it make if some days he finishes half an hour earlier than others.

 

[Sid]

Do you understand what a salary is?

Absolutely

 

[kp_n_plghng]

In response to Sids point. He is obviously correct.

My solution would be to switch them to salary at the start of the busy period, then if they leave at the end of quiet period you're quits. If they leave at the end of the busy period the employer wins.

 

[An Gof]

Absolutely

Well you didn’t demonstrate that you did.

 

[ollie989898]

Whether a salary works or not will depend on the nature of the business and the mindset of the boss.

Salary is a sort of understanding that employees will graft and generate value of their own volition and the boss won't have to manage them too much. He won't be too worried if they are going home early in slack periods or in the winter, etc.

 

[kiwi pom]

A salary still needs some kind of guide on the minimum and maximum hours that are required each week. You can't just expect someone to do 20 hours a day just because its a busy time.

My only experience of a salary is on a annualised hours contract, that works quite well for a seasonally varying job, it just needs to be managed properly.

Mrs KP is on a salary but her contract clearly states what weekly hours it is based around, its just sometimes she's busy one week needing more hours and quiet the next.

 

[kp_n_plghng]

I don't agree with all the comments on going home early etc. The working day doesn't change a jot just because someone's salaried. You start at 8 you finish at 5 or whatever time you've agreed. Same as any other industry. You don't knock off early because you're on salary. What happens when boss rings you to go load a lorry at 430. "Oh i've gone home".

Too many people see farms as places where the work structure can be ignored. Like bringing children in for rides on tractors or taking social calls without thinking twice.

Just my opinion anyway.

 

[ollie989898]

I don't agree with all the comments on going home early etc. The working day doesn't change a jot just because someone's salaried. You start at 8 you finish at 5 or whatever time you've agreed. Same as any other industry. You don't knock off early because you're on salary. What happens when boss rings you to go load a lorry at 430. "Oh i've gone home".

Too many people see farms as places where the work structure can be ignored. Like bringing children in for rides on tractors or taking social calls without thinking twice.

Just my opinion anyway.

There has to be some give and take in it, or else how does your salary work when a guy is doing 80+ hours a week during harvest?

 

[kp_n_plghng]

There has to be some give and take in it, or else how does your salary work when a guy is doing 80+ hours a week during harvest?

If he's on the right money it'll be no problem. You just detail the job in the contract and talk with the employee then everyone knows what to expect.

 

[Chieftain]

I don't agree with all the comments on going home early etc. The working day doesn't change a jot just because someone's salaried. You start at 8 you finish at 5 or whatever time you've agreed. Same as any other industry. You don't knock off early because you're on salary. What happens when boss rings you to go load a lorry at 430. "Oh i've gone home".

Too many people see farms as places where the work structure can be ignored. Like bringing children in for rides on tractors or taking social calls without thinking twice.

Just my opinion anyway.

I don't think it's a case of ignoring the work structure, it's just flexibility that's needed for a job that varies so much on time dependencies. A lot of it relies on a good working relationship with your boss in that you do the job you've been employed for properly and he trusts you to do it without looking over your shoulder every 10 minutes.

I find salary wages often leads to working unpaid overtime, especially in the summer when it's still light at 5 and the boss is still working on his job but you've done yours but you're expected to keep going till he's done. So you can be assured I wouldn't feel guilty about finishing a half hour early in a quieter period when all the work needed for that day is done.

I can't see the downside to hourly pay to be honest because at least you know you're getting what you work for. The only situation where salary benefits is when the working hours drastically change, as in the OPs case, where a salary pay will spread the pay over the year more evenly.

 

[aangus]

Has this consultant ever employed anyone themselves? Before upsetting the apple cart I would be asking your accountant what is best for the business

 

[kiwi pom]

I don't agree with all the comments on going home early etc. The working day doesn't change a jot just because someone's salaried. You start at 8 you finish at 5 or whatever time you've agreed. Same as any other industry. You don't knock off early because you're on salary. What happens when boss rings you to go load a lorry at 430. "Oh i've gone home".

Too many people see farms as places where the work structure can be ignored. Like bringing children in for rides on tractors or taking social calls without thinking twice.

Just my opinion anyway.

If that's the case stay on hourly, what's the point of being on salary?
Hours worked = money owed.
If you finish at 5 and he rings at 4.30 to say a trucks on its way, it ain't get loaded anyway