There are many facets which determine how satisfied an employee of a small business is with his particular job. Primary among these is compensation. The amount of pay is, of course, important but so is the method of compensation. It is impossible to make a general statement as to whether hourly or salaried employees are the most satisfied with their employment. There are many factors to consider which vary in importance to individual employees of small companies.
Overtime
Small business employees are often called upon to work overtime when the company is thriving as the staff is generally few in number. Obviously, it is to the advantage of the hourly employee when it comes to overtime situations as she will receive additional pay for the additional work. Overtime pay is often premium pay as well when time and a half or even double time pay is dispensed. In this situation, it is likely that hourly workers are more satisfied with their job than a salaried employee who makes the same amount regardless of the hours put in during a given period.
Value Perception
According to The Truckers Report.com, hourly employees, such as truckers who spend time waiting and loading and loading, but are not paid by the hour are less likely to feel valued by a company than those who are paid an hourly compensation. These workers also, according to Daily Finance, are more reminded of the value of working by hour because they are reminded of it through their time sheets on a regular basis. Employees who are “on salary” might feel unjustly “used” should they be asked to stay on site for such additional duties not associated with their main function but receive no extra pay for it.
Status
Status is often important to a person’s satisfaction with a job. Many employees feel that they have a higher status in a small company if they are pay salary wages whether than by the hour. Oftentimes, salaried employees are likely to have a leadership title such as supervisor or manager rather than a worker title such as clerk, assistant or associate. For many people, a salary position is indicative of an important position within your small business and, thereby, increases job satisfaction.
Commitment
Different individuals have different levels of commitment to their jobs. For many, a particular position in a small business is the number one priority in their life. These individuals are the ones mostly likely to covet salary wages as this generally indicates an upper position in the business and, often means the worker has made a long term commitment to the company. Other people work jobs at small businesses and do their work without as great a commitment. Their attitude may be that their job is lower on their list of priorities, and they do not plan on a long term career with the company. This type of staff person is less likely to be interested in a salary position but is more comfortable working as an hourly employee who gets paid for the time put in but uninterested in staying in your employment for a long tenure. Those with a high level of commitment might be extremely satisfied with their jobs for the long run while those with a lower level might simply be well satisfied only for a shorter length of time.
Sources:
- The Trucker’s Report: Hourly Wage for Drivers Pays Off in Retention, Safety, Company http://www.thetruckersreport.com/hourly-wage-for-drivers-pays-off-in-retention-safety-company-says
Daily Finance: People@Work: Why Hourly Wage Earners Are Happier Than Salaried http://www.dailyfinance.com/2010/03/08/people-work-why-hourly-wage-earners-are-happier-than-salaried-w/
