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The Empuls Glossary

Glossary of Human Resources Management and Employee Benefit Terms

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Hourly Employee

An hourly employee is an individual who is compensated based on the number of hours they work. Hourly employment is frequently seen in jobs ranging from the retail or hospitality industry to healthcare and manufacturing.

Wages are set based on the working hours and the mid-breaks. Hourly employment has one distinguished characteristic, hourly employees are entitled to receive overtime pay when they work more than the specified hours.

Who are hourly workers?

Hourly workers are the individuals who get paid based on the working hours for the work they perform. Their earnings are typically calculated by multiplying their working hours.

Hourly workers are mostly indulged in industries such as retail, hospitality, manufacturing, customer services, and entry-level position.

Listen, recognize, award, and retain your employees with our Employee engagement software  

What are the characteristics of hourly employees?

Some key characteristics that define an hourly employee:

  1. Compensation
  2. Time tracking
  3. Overtime eligibility
  4. Variable work schemes
  5. Part-time or full-time status

      1. Compensation: Hourly employees receive an hourly wage that is determined by the employer and is specified in an employment agreement.

       2. Time tracking: Hourly employees are required to track and record work hours accurately, which may involve clock timing or manual timesheets to keep a check on           working hours and breaks are taken.

       3. Overtime eligibility: Hourly employees in many jurisdictions are entitled to receive overtime pay if they work more than a certain number of hours.

       4. Variable work schemes: Hourly workers have flexible work schedules and may assign shifts or work according to availability based on the employer's needs.

       5. Part-time or full-time status: Hourly employees work full or part-time depending on the employer's needs and terms of the employment agreement.

How does an hourly employee get paid?

Hourly employees are typically paid based on the hours they work. Overview of how hourly employees work:

  1. Hourly wage
  2. Time tracking
  3. Regular pay
  4. Pay-check or direct deposit
  5. Overtime pay

      1. Hourly wage: Hourly employees receive an hourly agreed-upon salary, determined by the employer and specified in their employment contract.

      2. Time tracking: Hourly workers must track their work hours accurately, which can be done through various methods, time clocks, electronic timekeeping, and more.

      3. Regular pay: Hourly employees are paid their regular hourly wage for hours worked during the standard world week.

      4. Pay-check or direct deposit: Hourly employees receive their pay-check or direct deposit; that is, employers may provide physical pay-checks that employees            can cash, or they may directly deposit the wages into the employee’s bank account.

       5. Overtime pay: In many jurisdictions, hourly employees are entitled to receive overtime pay when they work more than the specified number of hours.

How many hours can an hourly employee work?

Daily working hours range from 8- 10 hours and should not exceed 48 hours a week, where the weekly limit is capped at 50-60 hours, including overtime.

Do hourly employees get benefits?

Hourly employees receive several benefits such as:

  1. Employment status
  2. Employer policies
  3. Voluntary benefits
  4. Local labor laws

        1. Employment status: Hourly workers, working part-time and full- time have different availability of benefits. Full-time hourly employees are more likely to be             eligible for benefits, while at the same time, part-time hourly employees may have limited benefits.

        2. Employer policies: Employers have the prudence to determine the benefits they offer to their employees, whether part-time or full-time.

        3. Voluntary benefits: Hourly employees are also benefited from programs such as opt-into additional benefits at their own expense.

        4. Local labor laws: In some jurisdictions, labor laws require employers to provide certain benefits to employees, regardless of the employment status, which            includes minimum wage requirements and paid leave ( sick leave or vacation days).

How to motivate hourly pay employees?

Motivating hourly pay employees is critical for engagement, productivity, and satisfaction.

Some of the strategies which include are:

  1. Clear communication
  2. Encourage work-life balance
  3. Reinforcements and rewards
  4. Encourage a positive work environment
  5. Learning and self-improvement

        1. Clear communication: Communicating expectations, goals, and performance standards to hourly employees and making them understand how their role will           contribute to overall success.

       2. Encourage work-life balance: Supporting healthy work-life balance for hourly employees by providing flexible schedule options.

        3. Reinforcements and rewards: Foster a recognition program that acknowledges and rewards employees for the achievement and efforts of hourly employees,            which includes verbal, written appreciation, or performance incentives.

        4. Encourage a positive work environment: Create a positive work culture that promotes collaboration and mutual respect among employees. A positive work            environment fosters employees to be productive and increases retention.

         5. Learning and self-improvement: Encourage learning and self-improvement by providing mentorship opportunities and training programs to enhance skills             and knowledge.

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.


eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

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