What to Expect When Getting Paid a Salary

When someone receives a salary, this means that they aren’t paid an hourly rate. Instead, they are paid a set annual rate that the company breaks up into paychecks, typically every other week. Along with the money they receive on their paycheck, they often also get benefits. Typically, salaried employees don’t keep a timesheet since they receive a fixed amount of money despite how many hours they may work.

Along with bi-weekly or monthly paychecks that average out to the same amount each time, a salaried employee typically receives benefits and other job perks. A salary may include the following benefits:

• Sick days
• Paid vacation
• Paid holidays
• Medical insurance
• Dental insurance
• Vision insurance
• Life insurance
• Matched retirement contributions
• Maternity leave
• Company stock

Earning a salary includes the following advantages:

More predictable pay

If you stick to a strict budget, then getting paid a salary is ideal for you. That’s because you can expect the same amount of money each paycheck and plan accordingly. Even if work is slow, you’ll still receive that same amount of cash whereas, with an hourly job, your hours and payment would simply be cut. Likewise, employers have a payment calendar, so you’ll know exactly when your next paycheck is coming. Oftentimes, employees set up direct deposit so the money goes straight to their bank account.

Receiving benefits

A major perk of a salaried job is that you are likely to get benefits from your employer. Since insurance expenses can quickly add up when you’re paying for them on your own, such benefits can actually save you a lot of money. Likewise, getting paid time off is a major benefit so you can still get paid if you were to take a sick day or go on vacation. An hourly employee could take time off, but they wouldn’t be compensated for it.

More opportunity for growth

Working a salaried job can be worth it for the career opportunities you’re exposed to. Oftentimes, salary jobs come with a lot of responsibilities, meaning that you’ll get to develop many different skills. It’s also likely that you have a higher chance of being promoted within a company that has salaried positions. That’s because management and other leadership roles may need someone with full-time experience.

Of course, there are some downsides to earning a salary, including:

No overtime compensation

It’s quite rare for an employer to pay salaried employees overtime. As an hourly worker, you can make overtime if you work more than 40 hours in a week. Many businesses pay time and a half for overtime pay, making it more of an incentive to take on additional hours. If you were to work more than 40 hours in a salaried position, you’re technically getting paid less if you were to divide your paychecks by the hours you’ve worked.

No holiday pay

Although many salaried employees benefit from paid holidays, they usually do not have the opportunity to be paid extra for working holidays. Many hourly employees have the opportunity to make time and a half on holidays, with some employers paying double or triple time for bigger holidays.

More difficult to create a work-life balance

Since you don’t technically clock in and out of a salaried job, you may find it more challenging to separate your work life and home life. Salaried employees tend to be more susceptible to taking work home, answering messages outside of business hours, or staying at the office late.

When getting a job offer, you may want to negotiate the terms of your employment to ensure you are being compensated fairly. This means that you may need to discuss your salary and aim for higher pay. Follow these steps when having this conversation with an employer:

• Research your job title: Learn what other professionals with your job title are making so you know a fair salary to negotiate for. Using Glassdoor’s job search feature gives you the ability to research companies and compare salaries.
• Set your range: Rather than going into the conversation with one number, pick your ideal compensation and your absolute minimum. You can determine these numbers based on your financial needs, geographic location, professional experience and background, and level of education.
• Ask questions: Inquire about your potential employer’s expectations to get a better idea of the work you will be doing. Once you’re at a job for a while, you could even ask them what you would need to do to get the salary you have requested. This tip is especially helpful for employees who are looking for a raise. Getting regular feedback can help you improve your efforts and heighten your chances of a raise.
• Consider negotiating benefits: Oftentimes, your benefits are just as valuable as the money you’re making. Employers may be more apt to give you additional paid time off or educational opportunities if you show how you can add value to their company.
• Be polite yet firm: If you really need to make more than they initially offer, you may need to be firm on your request. Of course, continue to maintain a sense of professionalism so you can continue to have a good relationship with the employer.