Fill That Bank Account With Premium, Please

According to latest shift practices survey conducted by Circadian Technologies, Inc., the average hourly shift differential increased from $.50 to $.74 per hour during the past year. The survey was completed by over 700 of America’s largest employers. And last year, it was reported that the number of employers who were paying some of the highest premiums were declining.

So what does this mean for shiftworkers, and do shift differentials have any real benefit? First, the new average hourly shift differential of $.74 works out to a little less than $30.00 per week, or $1,500 per year. Not bad, you say, but take a closer look. The $1,500 annual differential is often reduced by one-third for those working rotating shifts (differential is usually not paid for the day shift), and depending on the tax implications, that amount could be reduced further.

If you factor in the inconvenience, loss of sleep, physical and mental debilitations, etc., you may feel that this is inadequate compensation. This may be so, especially in light of the efficiencies gained by the employer by operating around the clock while the workers battle with sleepiness, stress, and health problems. Often, the shift differential is lumped in with salary and finds its way into the family checking account, taken for granted, and often overlooked.

So what are shift differential systems really trying to accomplish? The problem with shift premiums today is that they merely serve as enticements for recruitment, and as a hedge against turnover.

In Huntsville, Alabama, a hospital is offering significantly higher shift differentials to pharmacists along with “signing” bonuses to attract new talent in hopes that this money will make the job more attractive. In other words, the pharmacists would be working the “shifts they want” because of the money.

There is nothing new about this. According to the National Association of Convenience Stores 2001 Compensation Survey Report, 45% of stores offer shift differential with averages of 40 cents an hour for evening shifts and 56 cents for night shifts. Turnover has decreased across the board. But is that good enough?

There really is nothing wrong with offering premium pay for evening and night work. After all, most people prefer to work during the day, and it is becoming more and more difficult to hire people to work off-hours. But shiftworkers need to understand that the premium pay is designed to keep them satisfied in their jobs. It is not designed to motivate them to new heights, or to give them a feeling of self-worth and accomplishment. Simply put, shift differential may keep you coming to work, but you’ll have to find the psychological benefits elsewhere.

Go To Page: 1 2

Articles in this Topic    Discussions in this Topic