Manufacturing compensation

Manufacturing Compensation and Shift Differential Toolkit

Set plant pay the right way in one afternoon: salary bands for your salaried and indirect roles, shift differentials priced the way federal overtime law requires, skill ladders for the floor, a market check log, and a merit plan that respects the budget.

6979USD

One-time purchase, no subscription. Instant download.

Built by expert HR practitioners and leaders

  • Plant pay set in one afternoon: salary bands for your salaried and indirect roles, shift differentials priced the way federal overtime law requires, skill ladders for the floor, a market check log, and a merit plan that respects the budget
  • Overtime figured the right way: shift differentials flow into the regular rate before overtime is calculated, following 29 CFR 778.207, so you are not quietly underpaying every overtime hour on every differential shift
  • A pay ladder a supervisor can post: the Pay Ladder Builder opens with a finished Machine Operator path, five levels with the skill blocks that earn each step and the dollar and percent move between rungs; replace it with your roles and the math follows
  • Your rates, logged and decided: a Market Check log that compares your base pay and your differential against the market and records whether you Hold, Watch, or Adjust, instead of scraped data you cannot verify
  • Worked examples on every tab: every tool opens on a fully worked example for a fictional plant, so you see exactly how each one behaves before you touch your own numbers

The toolkit gives you the structure and the math; you bring current market data for your area. Pay decisions carry legal and equity weight that varies by market, so validate your structure and run a pay-equity review before you rely on it.

One-time purchase Instant download Editable files 14-day guarantee

Editable Excel workbooks and PDF guides, general business information, not legal or tax advice. Pay decisions carry legal and equity weight, so validate your structure against current market data and applicable law, run a pay-equity review, and confirm specifics with a qualified professional before you rely on this.

Last reviewed June 2026

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What you get

Two workbooks and the guides that run them

The core workbook builds bands, prices differentials, builds ladders, and logs market checks, with a budget-aware merit workbook alongside it. Every tool opens on a worked example, the Product License covers the kit, and a short Google Sheets guide is included.

PDFStart here

Start Here

A one-page orientation that walks the full flow: set your bands, set your differentials, build your ladders, run a market check, then apply merit.

XLSXExcel

Compensation and Shift Differential Builder

The core tool, with nine tabs. Build a salary structure from one market anchor and two settings and see who sits below, within, or above range. Set a percent or flat differential per shift and the tab prices each person, computes overtime on the differential-inclusive rate, and rolls up the annual differential spend. Build skill-based pay ladders, and log market checks on base and differential with a Hold, Watch, or Adjust decision.

PDFGuide

Compensation and Shift Differential Builder Guide

A seven-page guide that explains every tab, including a decomposed overtime example and the federal rule behind it.

XLSXExcel

Merit Increase Matrix

A budget-aware merit planning workbook, so the raise round respects the number finance gave you, with a budget rollup that keeps the total honest.

PDFGuide

Merit Increase Matrix Guide

How to run the merit matrix: set the budget, place performance and position-in-range, and read the rollup before you commit the round.

How it works

From pay run on memory to a structure you can defend

The builder sets bands and prices differentials with the overtime math correct, the ladder posts the steps, and the merit matrix keeps the round inside the budget.

STEP 01

Set bands and price differentials

Build a salary structure from one market anchor and two settings, then set a percent or flat differential per shift and let the workbook price each person and compute overtime on the differential-inclusive rate.

STEP 02

Build ladders and check the market

Turn operator progression into posted wage steps on the Pay Ladder Builder, then log a market check on base and differential and record a Hold, Watch, or Adjust decision.

STEP 03

Apply merit inside the budget

Use the Merit Increase Matrix to plan the raise round against the number finance gave you, with the budget rollup keeping the total honest.

The standard

Built for the floor, honest about market and law

On most plant floors pay runs on memory and a few inherited spreadsheets, and the overtime math is quietly wrong because the premium is figured on the base rate instead of the rate that includes the differential. This toolkit fixes the math and gives you a system you can run yourself.

The overtime math is correct. Shift differentials flow into the regular rate before overtime is calculated, following 29 CFR 778.207. Pay it on the base rate alone and every overtime hour on every differential shift is underpaid; multiply that across a crew and a year and it becomes back pay you did not budget for. Most plant spreadsheets get this wrong. This one does not.
The overtime math is correct. Shift differentials flow into the regular rate before overtime is figured, per 29 CFR 778.207, with a note on the weighted-average case for a week worked across more than one shift, and the workbook shows the calculation rather than hiding it.
Skill-based pay ladders, not just bands. Floor roles do not fit a salary grade, so the ladder turns operator progression into posted wage steps tied to demonstrated skill, one of the clearest retention tools you can give a supervisor.
A market check log with a decision column. Not scraped data you cannot verify, but a structure for logging your own checks on base and differential and recording whether you Hold, Watch, or Adjust, so drift shows up in the history before it shows up in your turnover.
Is this for you

Who it is built for

Who the toolkit fits, and where to go if your need is something else.

Built for

  • A plant manager, an HR team of one, or an operations leader at a 20 to 500 employee manufacturer that competes for hourly labor across multiple shifts.
  • A floor running pay on memory and a few inherited spreadsheets, where the differential was set years ago and nobody is sure why.
  • A plant losing hourly people to the shop down the road over a dollar an hour, with no one tracking where the rates sit against the market until someone resigns.

If your need is different

  • The hire those rates are offered to. The Manufacturing Hiring Kit runs the job description, the skills checklist, the structured interview, and the bilingual application.
  • The full plant HR program. The Plant HR Manager Complete System bundles this toolkit with attendance, supervision, hiring, and onboarding.
Questions

Before you buy

Does this calculate overtime correctly for shift differentials?
Yes. Overtime is figured on the rate that includes the differential, per 29 CFR 778.207, and the workbook shows the calculation rather than hiding it. The guide explains the rule and the weighted-average case for mixed-shift weeks.
Is this software, or a spreadsheet?
A spreadsheet. It runs in Microsoft Excel and works in Google Sheets, with a short guide for the Sheets path. There is nothing to install and no subscription.
Do I need a compensation background to use it?
No. Every tool opens with a fully worked example and a plain-language guide. If you can replace numbers in a spreadsheet, you can run it.
Will it tell me what to pay my people?
No, and you should be careful with any tool that claims it will. Market rates are local and change quickly. This toolkit gives you the structure and the math; you bring current market data for your area and the workbook turns it into a defensible pay structure.
Can I use it for both salaried staff and the hourly floor?
Yes. The band tools cover salaried and indirect roles. The differential and ladder tools are built for the floor. One workbook handles both sides of the plant.
I already have a pay spreadsheet. Why switch?
Open it and check one thing: when someone on a differential shift works overtime, is the premium calculated on the base rate or on the rate that includes the differential? If it is the base rate, the spreadsheet is underpaying overtime, and this toolkit corrects it while giving you the ladder and market tools your current file probably does not have.
My plant is small. Is this overkill?
No. It is built for lean teams. A single person can stand up bands, differentials, ladders, and a market log in an afternoon, which is the point.
What is the refund policy?
Digital products are covered by a 14-day money-back guarantee. See the refund policy for the full terms.
What happens after I buy?
Checkout delivers an instant download link, and a receipt with the same link arrives by email. Start with the Builder, replace the worked example numbers with your own, and read the guide on the overtime rule. If a file gives you trouble, email support@truestephr.com.
Can I expense this purchase to my business?
Most customers buy TrueStep HR tools for business use, and a tool you use for work often qualifies as a deductible business expense. Whether it does for you depends on your situation, so confirm with your accountant or tax professional. Your receipt arrives by email at checkout and works as documentation.
Free guide

The 6 red flags to check before you discipline or fire someone

A five-minute screen that catches the most common and most expensive people-decision mistakes before they happen. Free PDF, sent to your inbox. Unsubscribe anytime.

Get the kit

Set plant pay the right way in one afternoon

Your shifts, your differentials, and the overtime math that is quietly wrong: the toolkit fixes the math, posts a pay ladder, logs the market, and plans merit inside the budget.

$69
One-time purchase, no subscription

Compensation planning support, not legal or tax advice. Last reviewed June 2026.