Implications and Effectiveness of Half-time Pay for Salaried Employee Overtime

Half-time pay is an option for salaried employees to receive as an overtime benefit. Based on a fluctuating workweek schedule, employees with varying hours can be compensated for additional hours worked over 40, through the use of half-time pay. If an employee works less than 40 hours in a week, he/she will still receive the full salary compensation; however, any hours over 40 will receive a wage at half-time of normal pay. My research included examining current policies and analyzing the potentially positive and negative effects of half-time pay for salaried employee overtime. Factors such as retention, fairness, and equity were considered when evaluating the potential effectiveness of half-time pay. By considering different management techniques for motivating employees in the workplace and considering the pros and cons of using half-time pay as an overtime pay method, I make a recommendation of how and when half-time pay should be used. Executed in the right conditions, using half-time pay for a salaried employee's overtime can be an effective tool for increasing both employee motivation and morale.