Q: I’ve familiar with the new Overtime Rule that goes into effect Dec 1, and because I won’t be able to raise my administrative assistant’s salary to $47,476 in order for her to remain exempt from overtime, I have no choice but to reclassify her position as hourly. I’m very concerned about how this will affect her morale and motivation. She’s very trustworthy and takes great pride in her autonomy and her freedom to come and go. What’s the best way to communicate the news?
A: Telling an employee that they are being reclassified from salaried to hourly is a difficult conversation. In spite of the fact that it’s demonstrably beneficial to the employee (going home on time, a personal life with fewer work interruptions, and overtime pay when having to work extra hours) most employees won’t be happy about it.
Here’s why.
No longer being salaried is often seen as a loss of status and prestige, or even a downright demotion. That’s why it’s important to communicate with employees long before the change actually happens, so they know it’s not a reflection on their performance or their value.
Another big reason employees will resist, is the undeniable inconvenience of having to keep track of hours worked. Reclassified employees will have to track start and end times, breaks, meals, doctor’s appointments; for some, this may be a first in their careers. Despite of technology advances -like timesheet apps for your phone- time keeping it’s still a pain.
So how can we soften the blow?
- Emphasize the upside. Possibly more time with family, for hobbies, occasional extra pay for overtime.
- If you have different levels of benefits for exempt and nonexempt workers, remove them. Instead consider leveling the field –for example by offering paid leave on the basis of tenure instead of exempt or nonexempt status.
- Offer schedule flexibility. Being hourly doesn’t necessarily mean rigidly working 8-5 everyday. Flexibility can still occur. It’s possible to stay late to attend a meeting, or arrive early to complete a task, or come-in on a weekend, as long as time is adjusted on a different day of the same week.
Most importantly:
- Communicate with employees who’ll be a affected. Begin the conversation now. Share the what and why so there are no surprises on December 1st.
©Copyright Eva Del Rio
Eva Del Rio is creator of HR Box™ – tools for small businesses and startups. Send questions to Eva@evadelrio.com
