Over the weekend, Tim and Mark are the guards in charge. until 5 p.m., Monday to Friday, and earn $21 per hour each. Steve and Andy have a regular workday, from 8 a.m. Let’s say that your office requires two security guards at all times, thanks to the expensive equipment you’re using. A Quick Example of Shift Differential Pay Essentially, the more undesirable the hours, the higher the pay should be.įor those who do offer additional pay to their salaried staff, this is usually calculated as a percentage of their typical salary. Depending on what your business’s typical work hours are, there may be a set percentage for those working second shift and then a higher percentage for the full night shift differential. When it comes to calculating shift differentials, most businesses start off with a base rate for all workers, then adjust this depending on the type of workweek they’re asking employees to do. How Is Shift Differential Pay Calculated? For hourly workers, their pay shift differentials are either a percentage (usually between five and 15 percent) of their hourly rate or as an additional flat fee, often ranging from 50 cents to $1.25. Amounts can range anywhere from five to 15 percent in extra wages. What Is the Average Shift Differential Pay? What the pay is for one employee on a weekend shift is the same as an employee in a comparable role and hours of work. But that rate isn’t set on a per-employee basis. That means that it’s completely up to employers how much and when they want to pay a differential rate. Shift differential pay rates aren’t a legal requirement under the Fair Labor Standards Act (FLSA). Additional time off or flexible working hours may be offered to salaried workers if working outside normal hours becomes more frequent. For many business owners, the additional perks and security that come with a salaried position mean that, if some additional work is required, that’s simply part of the job. ![]() The vast majority ( 92 percent of companies) offer shift differential pay to their hourly employees, but only 36 percent offer this to salaried employees. Regardless of what type of work your company does, businesses who hire people on an hourly wage for holiday shifts, weekend hours, or anything beyond what’s considered a “desirable shift” should seriously consider implementing this practice. When Does a Business Need to Consider Shift Differential Pay? You’ll typically find people working second and third shift in: ![]() You’ve probably heard of these hours referred to as “the graveyard shift”, but they can also include time worked on public holidays or other hours that the business wouldn’t ordinarily be open.Īround 4 percent of the American workforce are on duty only for the overnight shift, with another 12 percent working rotating shifts where occasional overnight or out-of-hours work is required. Shift differentials aim to make shifts that are outside of normal business hours a little more appealing for workers. What Is the Purpose of a Shift Differential? If your business is expanding and requires workers beyond your normal operational hours, shift differential pay can make the difference between keeping your staffing levels high and struggling to find people to work the evening shift. Shift differentials refer to the premium pay rates that employees earn when they work outside of normal business hours. Depending on what industry your business is operating in, you may or may not have come across shift differentials before. So how do you convince your team that a second shift, or even a full night shift, is the place to be? You’re going to need to offer them additional compensation to make it worth their while. When your business runs on a 24/7 operating schedule, finding employees to staff those “undesirable” hours can be a real challenge.
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