I'm on an hourly rate of pay and my employer would like me to move over to salaried. Obviously some benefits and downfalls, but I'm curious if they will try to lower the offer. What is it that I should consider from a financial perspective to ensure that I'm not going to low balled and potentially negotiate an adequate salary? I love being a consultant, but I realize that it rather expensive for them... love working there too - so want to have my ducks lined up before I'm in the situation.

Anyone have any thoughts?

Switching from hour to salaried only makes a difference if you are moving from non-exempt to exempt. Salaried people also must be paid OT unless they are considered exempt employees. If that will be the case, then you need to look at how much OT you generally work and, if the offered salary, will cover for that.

Of course you also need to consider whether you will continue to be employed as an hourly worker.

You also mention being a consultant. Does that mean you are a contract (1099) worker or a W2 employee? Going to an employee will also mean getting benefits that will greatly enhance your total package.

Hi there. Yes - I'm on contract. I understand that the rate of pay I receive right now is much higher than I would receive if I were on salary and trying to figure how much I made on an hourly basis... the employer has been quite generous in this regard as (you have pointed out) things like benefits and vacation are not "technically" included in my rate but they have padded the rate to help out. Now that I'm potentially moving to salary however, I'm wondering, what else is it that I should account for... vacation, medical... anything else that I'm forgetting?

Hello t:

I'm not sure you asked the right question... You appear to be looking for salary that EQUATES to your contract pay. I suppose, to NOT impose upon your employer.. But, I'm a guy who LIKES to impose upon my employer, especially since HE'S imposing on me.

What I'm saying, is you need to figure out the reason WHY he wants you to make this change. Is he doing it because he wants to REWARD you, or because he thinks he can get MORE out of you if he puts you on salary??

If it's the former, I'd just transpose the contract rate to an annual salary and ask for that.. Yes, you're including a hefty raise for yourself... If it's too much for him, let him offer you less. It's at least a good place to start the negotiations.

If it's the latter... I'd do the same damn thing.

excon

Ooo -- that has guts! ~lol No, perhaps I didn't ask the "correct" question - a mis communication on my part but I DO like your thinking! ;)

I agree with excon. If an employer is offering to hire you where you have previously worked as a contractor, then you simply start with annualizing your contract rate and going from there. Obviously the employer likes your work and wants you there, so let him negotiate with you. If he says to you that you are being realistic because you will now be getting benefits, then ask him to quantify those amounts. Believe me the employer can do that. He can tell you how much he's paying for insurance, the value of paid vacation and sick days, pension benefits etc. So let him tell you that and make a counter offer. I would not settle for the difference though. I would expect no more than a 25% reduction. So if you are making $50K now and the benefits quantifies at $10K, then don't accept $40K, but more like $47.5K.