Many companies will pay a higher shift differential premium for employees working graveyard and holiday shifts. Shift premiums can also vary based on the time and length of shift and the number of days and hours worked per week. Additionally, some respondents reported having different shift differential payments for jobs covered by labor unions than nonunion jobs.ĭifferentials for Second Shift, Third Shift and Holidays Influence of labor unions on specific jobs.įor example, employees with higher levels of responsibility, like managers, usually qualify for higher shift differential premiums than other employees working the same shift.J ob function and level of responsibility.Shift differential premiums vary depending on a number of factors, including: Amounts typically range between 5 and 15 percent of base salary.įactors Influencing Shift Differential Premiums Shift differential premiums for salaried employees are usually calculated as percentage of base salary. Second shift (“swing shift”), third-shift (“graveyard shift”) or holidays (see Table 2). Shift Differential Eligibility for Salaried EmployeesĪpproximately one-third of companies pay shift differentials to salaried employees working Premiums calculated as flat amounts typically range between 50 cents and $1.25. Premiums calculated as a percentage of hourly pay rate typically range between 5 and 15 percent. Shift differential premiums for hourly employees are usually calculated as either a percentage of hourly pay rate or as an additional flat amount. Shift Differential Eligibility for Hourly Employees Second shift (“swing shift”), third-shift (“graveyard shift”) or holidays (see Table 1). Most companies pay shift differentials to hourly employees working 36 percent pay shift differentials to salaried employees.92 percent of companies pay shift differentials to hourly employees.Shift differentials are additional pay premiums to compensate employees for working hours and shifts other than regular day shifts (typically 8a.m. (A demographic breakdown of survey participants is provided in the box at the end of this article.) Results from a recentĬulpepper Pay Practices & Policies Survey highlight shift differential practices including eligibility and amounts paid. An effective practice used by many employers is paying employees a premium to work undesirable shifts. ![]() Organizations with continuous, 24/7/365 operations face the challenge of recruiting and staffing employees to work beyond standard day shifts.
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