Future Workforce: How Can Hourly Wages Help Students’ Study and Career Advancement?
When job vacancies increase, employers generally have to offer higher wages to attract candidates. This results in average hourly wages increasing. Healthcare workers have been in high demand, and employers are offering wage increases to attract the best candidates. Other industries have seen the same results.
There are mixed views about whether increasing the minimum hourly wage has a negative impact on employment or not. Many students look for part-time jobs while studying. If they only earn the minimum federal wage, it may not be worthwhile. However, earning a decent hourly wage can have a significant effect on how well they cope while getting an education and on their future careers.
What is an hourly wage?
Hourly workers earn wages based on the total hours they work in a given time. A KPMG National Minimum Wage insight shows many hourly workers cannot tell if they are earning the right hourly wage or not. Deloitte defines the average hourly pay rate as based on employee experience, the scope of work, and designation. In an hourly wage scenario, the employee agrees with the employer on the amount the worker will get per hour. After completing the assigned work, the employer calculates the total hours worked multiplied by hourly wage to get the total earnings due. Statista reports the minimum hourly wage in the US is $7.25 for covered non-exempt workers.
Salaries versus hourly wages
Employees fall into two different categories: those who work for a salary and those who work for an hourly wage.
Employees who earn a salary receive a set amount per month, no matter how many hours they work. This amount doesn’t include other forms of compensation, such as bonuses, reimbursements or commissions.
Hourly employees must be paid at least the federal or state minimum rate. If the state minimum wage is higher, this is what they must receive. The Fair Labor Standards Act of 1938 also guarantees their right to overtime pay. They must be paid at least 1.5 times their hourly pay for any time worked over 40 hours a week.
Pros and cons of hourly wages
There are advantages and disadvantages to both methods of payment. How employers choose to pay employees and how much determines who they attract to the role. This can influence how an employee impacts the finances of the business over the long term.
Pros of paying hourly:
- Cost savings for employers who can adjust costs based on expected revenue.
- Hourly workers can work on a part-time basis and not receive extra benefits.
- It is easy to measure what workers contribute based on hours present on the job.
Cons of paying hourly:
- Costs fluctuate depending on work schedules.
- It may be hard to attract senior employees who expect more stability and benefits.
- Employers must pay hourly wage earners for the overtime they work.
Assignment help for students
Students working in part-time jobs and studying at the same time can find it difficult to manage all their responsibilities. The best solution, while they’re getting a college education, is to get help. For instance, they can receive help with nursing assignment from Ca.EduBirdie. They receive top-quality, plagiarism-free content well within their deadline. This provides them with a great example of academic writing that helps them to improve their own writing skills and get good grades. It helps them stay on top of their academic goals and achieve success in everything that they take up.
Industries where hourly wages are commonly paid
Hourly wages are common in the service industries. Students often work in service industry jobs while doing their studies. For students at college, it can be a great advantage to work part-time for a decent hourly wage.
As of December 2022, the average hourly pay for students in the U.S. was about $20 an hour. According to Zip Recruiter, the majority of teen students across the U.S. currently earn wages ranging between about $14 and $24. When students look for jobs, it is helpful to know how competitive an hourly wage is and the types of jobs they can find in higher-paying industries.
Education and instruction is one of the industries with high hourly wages. Students are well-placed to find jobs in this industry. Higher paying jobs are also found in offering business and administrative services.
Why raising the hourly minimum wage
There are some states that currently have a minimum wage of $15/hour. The federal minimum wage for non-exempt employees is $7.25/hour. Raising the hourly minimum wage can have many benefits. It offers more housing and food security and improves the mental health of workers.
When it comes to raising the minimum wage, strong support for increases usually comes from democrats, whereas republicans have mixed views. States differ in their views, with some using the federal minimum wage and others working towards using $15 over the next few years.
Frequently Asked Questions
Is salary taxed differently than hourly?
Forbes notes that all income regardless of how it is earned is taxed. Both hourly and salary payments are processed through the worker’s paycheck and reflects as income. Deloitte lists three types of taxes imposed by the federal government on wages and salaries – income tax, Medicare, and Social Security tax. The difference in terms of total tax paid is based on the total income earned.
How do hourly wages get paid?
Hourly wages are paid based on the number of hours an individual works. How often workers get paid depends on the agreement they have with their employer. Some get paid daily or weekly. Most organizations however pay hourly wages every two weeks or monthly. During payday, the employer calculates the total hours worked multiplied by hourly wage minus taxes.
Wrapping up Hourly Wages
Let’s face it. It’s 2023 and we can’t keep living in the past: Employers who reduce employee hours are looking to see how they can increase them. Paying a reasonable minimum rate of pay is the responsibility of all employers. Employers who pay $15 or more an hour are able to attract good employees, including students who want to study and earn part-time.
Other Hourly Employee Resources
- How Much Do Student Jobs Pay per Month? by ZipRecruiter
- Cornell’s University Student Wage Scale
- How much does a Work Study Student make? by Zippia
- United States Average Hourly Wages
About this post’s author:
Michael Stoddard is an experienced campaigner in the writing field and has ensured success for many students with his unique and effective writing skills. He assists them in writing personal statements, resumes, admission essays and research papers. His versatility and variety of writing come from his years of experience in this line of work.