Company Switching to Hourly Analyst Pay

Just got word that my company (large national bank) is switching their analyst pay structure from a typical base salary to an hourly salary, prorated based on the original base salary. The perk is that they will now pay 1.5x overtime pay for anything over 40 hours/week. Benefits, PTO, etc. are all the same. I know this is generally standard for internships, but does anyone have any insight into why a company would implement this policy nation-wide for their analysts?

7 Comments
 

Could be a number of reasons. Could be they have too much overhead currently, they want to track productivity by analyst, they want to do this so they don't have to have annual bonuses/smooth the payroll over the year, they could be anticipating a slowdown, etc.

"Who am I? I'm the guy that does his job. You must be the other guy."
 

In California this is quite common for internships, so could be stemming from your firm's national footprint where one of their divisions is in a jurisdiction that requires overtime and double overtime to be paid at a certain rate of hourly salary.

 

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