Sunday, September 27, 2009

Rate of pay

We are used to thinking of monthly salary. This is a legacy of the old world, where most people expect to work full time (i.e. 8 hours a day) and for a lifetime career.

In today's environment, we should think about flexible work. It is more appropriate to think about an hourly rate. This allows people to work on certain days (and for varying hours in a day (according to their personal schedule). It is especially suitable for students or adults pursuing further study.

The place of work can also be made flexible. Many people now find it convenient to work from their home. The hourly rate of pay can be converted into a project for a fixed payment. The time taken to complete a project can be estimated, and the hourly rate of pay can be applied to get the project fee.

I am creating a new job portal, and have decided to use the hourly rate as the basis of searching for a job. I use a conversion rate of 160 for hourly rate to monthly salary. For example, an hourly rate of $10 is the same as a monthly salary of $1,600.
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3 comments:

Anonymous said...

I fully support !

September 27, 2009 3:15 PM
Anonymous said...

It is not the hours you work - it is the productivity.

Using hourly work encourage people to skive. Long time ago, people used to be paid hourly, then discovered a lot of people purposely work SLOWER, take longer breaks, lunches. One page report can take 2 hours to finish. That's why now we use monthly pay.

This pay by hourly model is outdated and will only benefit people who work slowly with low productivity.

Better to be paid by project-basis. For employers, project can be tendered out to lowest bidder to maximum cost efficiency.

September 28, 2009 1:03 AM
120584ltyb said...

I agree that it is productivity that matters, but the lowest bidder may not necessarily be the most productive and might even give the employer slipshod work.

Anyway, a coversion rate of 160 seems to be too low. If I had a $1500 per month salary, given the typical work week of 44 hours, my hourly rate would be $8.52 (multiplier of 176) but at 160x, my monthly pay would only be 1363.63, not drastically lower, but low enough to force a cut back on a good number of things. Unless you are assuming a 40 hour week/160 hour month, which will explain the reduction.

October 16, 2009 5:47 AM

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