Originally Posted by otc
well...not hourly. They are salaried but they are not exempt employees (more on the exempt thing later...). Honestly, I don't know why more companies don't do it this way. Entry level employees don't really know what they want and you don't know if you like them.
Start them with a relatively low base salary based on a 35 hour week. It provides strong incentives to work more(we never have trouble rounding up some analysts on the weekend to do shitty data entry since if you didn't have any plans on sunday, why not make a few hundred bucks while you listen to music and sit around in your underwear?) and saves the company money when you are underutilized. Since they are billable, an extra hour worked is far more money for the company than an extra hour of OT. Work as much as a banker? Get paid like a banker. Come it at 9, take an hour for lunch and leave at 5? Won't pay you as much but as long as your work is good and you are billing, you can stay around as an analyst.
If times are slow and there's not a lot of work, the payroll also goes down (or if you suck and nobody wants to give you work, then at least they aren't paying you a lot just to sit around).
Really seems to help with the motivation and morale I think...new employees don't really have the buy-in that more senior people have so they see the extra work show up as extra money next friday (while more senior people are more motivated by projects being successful, professional reputation being good, and knowing that it should all get worked out come bonus time).
As to the companies that don't pay OT...I'm not sure I know how they get away with it.
There are a few tests to qualify as exempt. Most consulting employees meet the salary level test (something like 23k a year), but I don't see how they meet the duties tests.
-They don't supervise other employees
-management is not a primary part of the position (buget, interviewing, planning work, etc)
-they have no hiring/firing/raise input.
-most of their work isn't independant (not deciding the course of a project, not interacting with clients without direction from above, etc).
Then, they aren't learned professionals (pretty much all out of undergrad, so no doctors/lawyers/architects, etc), and they aren't administrative (they are all directly working on the core business).
Obviously there is something that lets the company claim them exempt...but I think that a lot of it is that entry level employees don't know shit about the world and thus don't know that they are really supposed to be eligible for overtime (and are happy just to have a job).