Hourly Wages and Salaries Overview

In 7shifts, there are three types of pay rates that can be used to calculate labor costs for employees and managers:

• Hourly Wages
• Weekly Salaries
• Annual Salaries

These options allow you to forecast and track your team’s labor costs based on how your staff is paid.

Hourly Wage vs. Weekly & Annual Salaries

Under an employee’s profile, you can select one of the following wage types:

• Hourly Wage: The employee earns a set amount for each hour worked. Labor costs are based on scheduled or actual hours worked. This is the default option for new users.
• Weekly Salary: The employee earns a consistent weekly amount, regardless of the number of hours worked or scheduled. Their salary is distributed evenly across the locations and departments they are assigned to in 7shifts.
• Annual Salary: The employee earns a fixed yearly amount, regardless of the number of hours worked or scheduled. Their salary is distributed evenly across the locations and departments they are assigned to in 7shifts.

Hourly Wages

How to access:

1. Go to Team > Employees > [Employee Name] > Wages and payment
2. Under Wage Type, select Hourly
3. You can assign either a single hourly wage or use Wage-based Roles to assign different rates for different roles.
   

Weekly Salaries

How to access:

1. Go to Team > Employees > [Employee Name] > Wages and payment
2. Under Wage Type, select Weekly Salary

When a weekly salary is entered:

• The amount is split evenly across the locations and departments where the employee is assigned to "Appear on schedule."
• On the Labor Budget Tool and Dashboard, the salary is distributed evenly across all 7 days of the week.
• The distribution is also reflected in reports such as Worked Hours & Wages and Scheduled Hours & Wages.

Example 1: An employee with a $1000 weekly salary is assigned to two departments under one location. Each department receives $500 in labor cost allocation.

Example 2: An employee with a $1000 weekly salary is assigned to:

• FOH and BOH at Location A
• FOH at Location B

The salary is first split evenly between the two locations ($500 each). Then, at Location A, it’s split further between FOH and BOH ($250 each). Location B’s FOH receives the remaining $500.

Annual Salaries

How to access:

1. Go to Team > Employees > [Employee Name] > Wages and payment
2. Under Wage Type, select Annual Salary

An annual salary allows you to enter an employee’s total yearly compensation. Once entered:

• The salary is automatically divided by 52 weeks.
• That weekly amount is then allocated across all assigned locations and departments, based on where the employee is set to "Appear on schedule."
• On labor tools and reports, the weekly portion of the salary is split evenly across all 7 days of the week.

Example: An employee with a $52,000 annual salary will have $1,000 distributed each week. If they’re assigned to two departments, each department will be allocated $500 weekly.