From salaried to hourly: How do we set his pay? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

From salaried to hourly: How do we set his pay?

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in Compensation and Benefits,Human Resources

Q. We have an employee going from a full-time salaried position to part-time hourly. To set his hourly rate, do we have to divide his salary by 2080 (40 hours per week for a year)? — Sherry, Florida

A. No, you can pay your part-time worker anything you care to offer and that he will accept, provided that you meet any minimum wage requirements applicable in your jurisdiction or to the type of work you do. Your question does suggest one way to arrive at a reasonable hourly wage, based on his past value to your organization. But it doesn’t take into consideration any benefits you may also offer to full-time employees or any changes to the employee’s job duties.

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