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Scorm.biz > Blog > EdTech and Online Learning > Class Central > The Key Differences Between Hourly and Salaried Employees and Why It’s Important
The Key Differences Between Hourly and Salaried Employees and Why It’s Important
Class Central

The Key Differences Between Hourly and Salaried Employees and Why It’s Important

Scorm.biz Team
Last updated: 2024/08/30 at 8:57 AM
Scorm.biz Team Published August 30, 2024
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Do you find managing hourly employees challenging? Are they constantly calling out, feeling unmotivated, or being thin-skinned? If your answer is yes, you’re not alone. Many managers struggle with this issue, especially in industries like retail.

As someone who operated retail franchises for over a decade, I understand the difficulties firsthand. But through trial and error, I discovered that hourly workers can be coached into high performers with the right approach. The key is to replace judgment and frustration with curiosity and compassion, starting with understanding the differences between hourly and salaried employees.

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  • Hourly Employees vs. Salary Employees
    • 1. Get your values off the poster and onto the floor.
    • 2. Identify and meet their “soft needs.”
    • 3. Give employees measurable work objectives.

Hourly Employees vs. Salary Employees

While all employees share basic needs like fair compensation and respect, salaried employees typically have higher earnings, status, stability, and benefits. Hourly workers, on the other hand, often juggle multiple jobs, have uncertain schedules, fewer growth opportunities, and less loyalty to their organizations.

Given these differences, it’s essential to adapt your management style when dealing with hourly employees. Here are some tips to help you do that:

1. Get your values off the poster and onto the floor.

Make your values more tangible by defining specific behaviors that reflect them. Reward employees who demonstrate these behaviors and hold them accountable accordingly.

2. Identify and meet their “soft needs.”

Apart from tangible benefits, employees also have emotional needs like recognition, personal growth, respect, safety, and a sense of belonging. Addressing these needs can enhance their loyalty and satisfaction.

3. Give employees measurable work objectives.

Establish clear performance metrics and provide opportunities for employees to track their progress. Appeal to their innate desire for growth and recognition by setting challenging yet achievable goals.

By understanding and fulfilling the unique needs of hourly employees, you can transform them from your biggest challenges into your greatest assets. Just look at the success stories of companies like Chick-fil-A and Trader Joe’s. It’s possible, and it starts with effective management.


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Scorm.biz Team August 30, 2024 August 30, 2024
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