Shift premiums remain an important part of reward packages, particularly within the manufacturing sector. Organisations generally offer shift premiums to employees in order to compensate for the regularly changing or unsociable working hours involved. Our new research into shift patterns, premiums and overtime rates analyses the most common shift patterns, premiums and overtime rates offered in 55 organisations, predominantly in the private sector.

Shift patterns and premiums

The most common shift patterns operating at the organisations surveyed are continuous day and night shifts (also known as ‘continental shifts’), accounting for a quarter of the types of shift patterns surveyed. Other common patterns operated by organisations in the sample are two-shift, three-shift, and night shifts, each accounting for around a fifth of the shift patterns in the sample.

Premium payments are dependent on the type of shift pattern, with employees that work more unsociable and irregular shift patterns generally receiving larger premiums. For example, continental shifts attract an average premium of 30%, or 33% at the median, due to the irregularity of the shift type with employees on this pattern working alternating day and night shifts. In comparison, more sociable, regular shift patterns, such as ‘double day shifts’, which usually involve a combination of early and late shifts but almost never working through the night, attract an average premium of 17%, or 18% at the median.

Overtime rates

The survey also analysed common overtime payments among respondents. The majority (95%) of organisations surveyed offer overtime payments in addition to shift payments, with 94% offering overtime at an enhanced rate. The most common overtime rate offered among respondents was time-and-a-half (in 72% of responses received for this question).

About the research

The IDR Shift Patterns and Premiums Report provides analysis of common shift patterns and premiums, and overtime payments, predominantly within the manufacturing and primary sector. It includes analysis of data from 55 respondents, together employing a combined workforce of around 228,000 people. The report examines typical shift patterns and premiums, and in which subsectors they are most prevalent. The report also analyses common overtime rates, paid breaks, and arrangements for shift swapping.