Shift differential is an additional pay rate given to employees who work less desirable hours, such as evenings, nights, or weekends. This extra compensation is intended to encourage workers to take on shifts that may be harder to fill due to their timing. Employers often implement shift differentials to maintain adequate staffing levels during these off-peak hours. The amount of the differential can vary by company and industry, and it is typically calculated as a percentage of the employee's base pay or a fixed dollar amount per hour worked during the designated shifts.