HR Glossary
Shift Differential

Shift Differential

Updated on:
August 22, 2022


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What is Shift Differential?

Shift differential is the difference between shift wages, or salaries, and hourly wages. Shift differentials differ by place of work and by industry, Shift differentials are important for companies to consider when setting pay scales for employees.

What are the reasons that shift differential is necessary?

The most common reason is to compensate employees for working less desirable shifts. For example, someone who works the night shift may be entitled to a shift differential because they are working during hours when most people are asleep. Additionally, shift differentials may be necessary to incentivize employees to work less desirable shifts. For example, if an employer is having difficulty finding employees to work the night shift, they may offer a shift differential to sweeten the deal.