Can I expect a pay cut going from hourly to salary?

Question

Being my first job, I have little experience. I currently make around 45k but I get OT, which currently adds ~12.5%. Coming up to a review later this year, it is possible that they will make me a manager that will take away my OT pay.

I'd expect my raise to be more than the "so far" typical 5% but what if it is only 10%...I'd be making less money.

Is this common? I know that I can negotiate but asking for a 17% raise seems pretty extreme (12% to make what I currently make + 5% as a raise).

Any tips? Thanks.

I will have the same benefits, probably more travel, and a larger workload. Obviously with more responsibilty.

Answer 1

It depends on how many hours you will now be working. If you're down to just a 40 hour week, you'll be coming out ahead per hour. Also, salaried positions usually have additional benefits, like better health insurance, pensions, vacation time, and profit sharing.
Plus, as a manager, if you're having a bad day, you can yell at someone...priceless.

Answer 2

If they still expect you to put in OT and you're salary then you'd be losing money. If they cut the OT but you don't get a raise to equal what you were making with OT then you're losing money.

As to asking for a certain amount for your raise, that's a tricky subject. If they don't like it then they can say "there's the door" or "here's what we're going to give you, take it or leave it".

If you do give them an ultimatum then be prepared to back it up.

OT is an extra benefit and shouldn't be counted in when you're making your budgets because what happens when/if the OT goes away?

I don't know where you live, but around here there is no "typical" raise of 5%. My husband was lucky if he gets 1%, if any raise for the year and I did a bit better at 3% - until the company decided, for economic reasons, to cut it's work force and I got the boot because I was making more money than many of the others.

IMHO - asking for that big of a raise is greedy. It would also negate the savings of hiring the other person to take on your OT duties and would cost the company more. They could potentially tell you to hit the road and hire someone with less experience for way cheaper.

Answer 3

In my experience, going to salary will give you a higher annual paycheck, but a lower hourly rate. At one place, for example, they took the person's hourly rate, multiplied it by 50 instead of 40 hours per week, and gave them that annually instead of what they were making for a 40 hour week. However, they worked over 50 hours, so they actually lost money on an hourly basis.

I would presume that you will get at LEAST a 12.5% raise, because they can't expect you to take a loss. However, if you think you'd be working even more hours than you already are, I would hold out for more money so you don't get screwed.

Answer 4

I did a quick look at usajobs and 2 positions in Los Angeles paying 27.2K and 34.1K and 1 job in Palo Alto paying 42.3K per year at the VA hospital. I don't know how that sounds to you, or if that's close to you. I started at my last job at 12.35 in South Carolina and was at $14 when I quit to finish my BA in History. Historian jobs are hard to come by so I may end up back in the pharmacy at a hospital. I agree with the other person that said retail sucks, I did it for one month and had enough, worked in a hospital for 2 years. It's not really true that people don't stay as a Pharmacy Tech for long, I see quite a few 50+ year old techs. I don't understand that.

Answer 5

Plug the numbers into a spread sheet, factor in the amount of time you typically work for regular pay, plus the overtime, and (hopefully) you'll get your current pay.

Then plug in the amount of salary they may offer you, and the likely number of hours you'll probably work as a manager. Even though you'd be in a salaried position, knowing the equivalent rate per hour you'd be earning can be useful to compare it to your current position. For example, you could find that you're earning 10% more, but working 15% more hours. It might not be a valid tradeoff.

Answer 6

Garret,
unfortunatly many 'salary' people earn less than hourly once the time 'salary' works is figured in.
ask ur self how many hours extra do u want to work for the title or chance to advance.
go ahead ask for the 17% all they can do is laugh, say no or say yes. the same goes for u when they respond.
are u living pay 2 paycheck now? can u do a budget? to get throught the hard times of new position? how about family time. all factor in.