Example of How a Differential with Lower Limits Applies
You're hiring two full-time people to work in New York and Miami. They both have the Individual Contributors 3 grade and their salaries include the US Individual Contributors salary basis and differential profile.
- The grade rate frequency is Annually.
- The differential profile criteria is by either compensation zone or compensation zone and business unit, and includes lower limits to enforce statutory requirements. For New York, the differential is 1.2 and the lower limit is 140,000. For Miami, the differential is .8 and the lower limit is 105,000.
Example Metrics
The proposed salaries for these new hires are 130,000 and 100,000, respectively. Here are the base metrics from their grade rate and the metrics calculated with their differentials. Normally the minimums for New York and Miami are 120,000 and 80,000, respectively. Because the differential profile includes lower limits, the metric calculations automatically adjust the minimums to the specified limits. As a result, both proposed salaries are below the minimums.
| Salary Metrics | Base from Grade Rate | New York Hire at 130,000 (1.2) | Miami New Hire at 100,000 (.8) |
|---|---|---|---|
| Range (USD) | 100,000 to 200,000 | 140,000 to 240,000 | 105,000 to 160,000 |
| Midpoint (USD) | 150,000 | 180,000 | 120,000 |
| Compa-Ratio | 80 | 72.22 | 83.33 |
| Range Position | 20 | 8.33 | 25 |
| Quartile | 1 | 1 | 2 |
| Quintile | 2 | 1 | 2 |