Concept: Shift Differentials
Shift differentials assign an additive or multiplier to the bill rate. They're used by companies to compensate hard-to-fill times differently to encourage workers to take those shifts.
You configure shift differentials in shift rules, where the differential automatically populates on a job template when that rule triggers. You can also assign or update a shift differential during offer release and during the modification of a work order.
Consider that shift differentials:
- Aren't required.
- Don't impact budget, or approvals based on budget, for jobs or work orders. This characteristic is because Workday VNDLY doesn't know how many hours a worker allocates against their assigned shifts. Also you can edit differentials at any time, making the differentials inconsistent to calculate. Because of these variables, shift differentials don't have an impact on approvals based on budgets.
- Won't take effect if premium rates are in use. Premium rates take precedent.
- Calculate in these special circumstances:
- Holidays. Shift differentials that apply to a day with a holiday premium will calculate shift differential followed by the holiday premium.
- First, the (Bill rate + shift differential) or (Bill rate × shift differential).
- Then + (holiday premium) or × (holiday premium) is added to the bill rate modified by the shift differential.Example: You have a bill rate of $25/hr with a shift differential of an addition of $10/hr. Your holiday premium is time and a half. The formula to calculate this rate would be: (25 + 10) × 1.5 = $52.50/hr.
- Overtime. Calculations made with shift differentials and overtime follow the same formula used by premium rates and OT formulas:
- (Bill Rate + Shift Differential) × Overtime × Hours.
- (Bill Rate × Shift Differential) × Overtime × Hours.