Imagine this: You’ve been working hard, proving yourself day in and day out in an hourly job. You’re no stranger to staying late to finish up or coming in early when things get busy. Over time, your responsibilities have grown, and you feel more invested in your role than ever. Then it hits you—wouldn’t it be great to move from hourly to salary pay?
Switching from hourly to salary can feel like a big step, yet it’s often a natural progression in your career. If you’re ready to make the jump, it might be time to approach your employer with a request for this change. But how do you make your case in a way that’s both professional and persuasive?
We’ll guide you through the differences between hourly and salary pay, weigh the pros and cons, provide a change-from-hourly-to-salary letter template, and share actionable tips for negotiating your way to a salaried role.
Whether you’ve been in an hourly role for a while or are starting fresh with a negotiation for a new job, here’s everything you need to know about making the shift from getting paid hourly to a yearly salary.
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Hourly vs salary pay
Before making a strong case to go from hourly to annual salary, it’s important to know what each pay structure entails.
- Hourly pay: With hourly pay, you’re compensated for each hour worked. Typically, hourly employees can receive overtime pay if they work more than 40 hours a week.
- Salary pay: Salaried employees receive a fixed annual amount divided across pay periods, regardless of hours worked in a week. Salaried roles may offer benefits like health insurance, retirement plans, and paid time off (PTO). However, most salaried roles do not include overtime pay.
Pros and cons of switching from hourly wage to salary
If you’re asking yourself, “Should I switch from hourly to salary?” note that this career movement has a few considerations.
Pros
- Stable income: Salaried positions guarantee a steady income, making it easier to budget and plan your finances.
- Access to benefits: Many salaried roles offer more robust benefits, such as health insurance, retirement contributions, and paid time off.
- Career advancement: Moving to a salaried position can often signal a step up in responsibility and may put you in line for future promotions.
- Set hours (sometimes): Many salaried roles come with standard hours, though this depends on the industry and position.
Cons
- No overtime pay: Unlike those who work for hourly pay, salaried employees generally aren’t eligible for overtime, which means any extra hours worked are unpaid.
- Potential for longer hours: Some salaried roles may expect you to work beyond the standard workweek, which could lead to an increased workload without additional pay.
- Less control over time off: Hourly employees are sometimes able to manage their schedules more flexibly, whereas salaried employees may need to adhere to specific hours or protocols for taking time off.
Knowing these pros and cons can help you weigh whether a salaried position is right for you and will also give you talking points when discussing this transition with your employer.
Switching from hourly to salary: 7 negotiation tips
The key to successfully requesting a shift from hourly wage to annual salary is preparing a strong case for why this change would benefit both you and your employer.
Here are some tips to help you through a moving-from-hourly-to-salary negotiation.
1. Choose the right time
Timing is essential when requesting a change from hourly to salary pay. You may want to bring it up during:
- Performance reviews: A review is an excellent time to discuss your growth, contributions, and career goals, and a natural point to request a pay structure change.
- Budget planning periods: Some companies set budgets or reassess compensation structures annually, so if you know when this happens, timing your request can be advantageous.
- At the time of a promotion or new responsibilities: If you’ve been asked to take on additional responsibilities, this is an ideal time to discuss a move to salary.
2. Highlight your value to the company
When asking to transition to a salaried position, demonstrate how your work contributes to the company’s success. Quantify your accomplishments wherever possible to make your case more compelling.
For example:
- In the last quarter, I managed the project timeline, which led to a 20% reduction in delivery delays. Transitioning to a salaried position would enable me to continue handling larger responsibilities.
- Since joining, I’ve trained three team members, reducing our onboarding time by 30%. Moving to a salaried role aligns with my ongoing commitment to the team.
3. Frame the transition as a win-win
Emphasize how switching to salary benefits not just you but also the organization. You can explain that a salaried role would give you the stability to focus on long-term projects without worrying about overtime, which can help you be more productive. With a set salary, you can prioritize your tasks and take on more responsibilities, knowing you're not tied to hourly constraints. This approach shows you're thinking about the bigger picture, where both you and the company can thrive in the long run.
4. Express your long-term commitment to the company
Highlight your interest in building a long-term career with the company. Employers are often more open to discussing salaried roles if they see you as a dedicated team member who plans to grow within the organization.
You could say something like:
I’m very excited about the potential to contribute to [Company name] over the long term. In a salaried position, I believe I could fully commit to taking on strategic projects and driving results for the team.
5. Research market standards and salary expectations
Knowing the market standards for a salaried role similar to yours can help you present a realistic salary range—especially if you’re wondering how to ask for a raise from hourly to salary. Websites like PayScale can give you an idea of what others in your field are earning as salaried employees.
Be prepared to discuss your current earnings and a suggested salary range based on industry averages. Also, mentioning other employees in similar positions can give your case context.
Pro tip: Not sure how to convert hourly to salary? Try using an hourly-to-salary converter. These tools can give you a breakdown of what you're earning per year, month, and week, helping you get a clearer picture of your overall compensation.
6. Make the request in writing
A written request is often easier for managers to review and present to decision-makers. In your email or letter, briefly outline your current role, the value you’ve added, and your proposal to move to salary.
Change from hourly to salary template:
Subject: Request for Transition from Hourly to Salary
Dear [Manager's name],
I wanted to discuss the possibility of transitioning from my current role to a salaried position.
Over the past [length of time], I have contributed to [mention specific accomplishments, such as “leading the marketing campaign that resulted in a 15% increase in client engagement.”] Moving to a salaried position would enable me to focus even more on my contributions without being concerned about hourly fluctuations.
I’d be happy to discuss this further and explore options that would be mutually beneficial. Thank you for considering my request.
Best,
[Your name]
7. Be ready to negotiate your terms
If your employer agrees to discuss moving you to a salaried role, they may not immediately meet your exact terms. Be prepared to negotiate key aspects, such as:
- Salary expectations: If you have a target salary in mind, you may need to justify it based on your contributions and market data.
- Benefits package: Inquire if you’d be eligible for additional benefits like PTO, retirement contributions, or health coverage.
- Flexibility on start date: Depending on your employer’s budget cycle, they may want to implement the change at a specific time. Be open to adjustments as needed. Express your willingness to work with your employer’s needs while reinforcing your commitment to the company.
8. Follow up if necessary
If your request isn’t initially approved, ask if you can revisit the conversation in the future or after completing specific milestones.
Remember, even if the answer isn’t a “yes” right away, demonstrating your commitment to growth can leave a positive impression and lay the groundwork for future discussions.
FAQs
How to calculate hourly rate from salary?
To calculate your hourly rate from a salary, divide your annual salary by the total number of work hours in a year. Start by estimating how many hours you work weekly (usually 40 hours for full-time), then multiply that by 52 weeks to get the yearly total. For example, if your annual salary is $52,000 and you work 40 hours per week, divide $52,000 by 2,080 hours (40 hours x 52 weeks) to get an hourly rate of $25.
Will switching to salary affect my working hours?
Salaried positions often don’t include overtime pay, which may mean you could work extra hours without additional compensation. Be sure to clarify expectations with your employer.
What if my employer says no?
If your request is declined, ask for feedback and set goals for revisiting the conversation in the future. Alternatively, you could explore other roles where a salaried position is standard.
Are there any laws on changing from hourly to salary?
In the U.S., transitioning from hourly to salary pay must comply with federal and state labor laws, particularly those outlined in the Fair Labor Standards Act (FLSA). Under the FLSA, only employees who meet certain criteria—such as earning above a minimum salary threshold and performing specific job duties—can be classified as “exempt” from overtime. These exemptions typically apply to executive, administrative, or professional roles, meaning not all hourly workers can be legally reclassified as salaried employees.
Can an employer change you from hourly to salary?
Yes, but it must comply with federal and state labor laws, particularly the Fair Labor Standards Act (FLSA). If an employee’s duties and pay meet these requirements, the employer can legally transition them to a salaried position. It’s best for both employers and employees to review job duties and compensation thoroughly to ensure the change is compliant and fair.