Overview of Salary Range Differentials

You can configure salary range differentials to adjust base salary ranges from the grade rate associated with the salary basis. Differentials vary, for example, to reflect the cost of living in different locations or the relative ease of hiring.

For example, salaries for workers in the Central US are in the base range of the grade rate. Salaries for workers in the South are in a discounted range with a 0.9 factor, and for workers on the East and West Coasts, they’re in a premium range with a 1.1 factor. Salaries in New York City, Los Angeles, and San Francisco are in a super-premium range with a factor of 1.2.

Select the level of granularity that best supports your salary policies and processes:

• Location
• Business unit
• Location and business unit
• Compensation zone
• Compensation zone and business unit

When using a Grade Rate type differential profile, you can configure an overriding grade rate to use instead of the salary basis grade rate. The adjusted salary range is the range of the overriding grade rate.

When using a Factor type differential profile, you can configure the differentials to enforce relevant statutory limits around minimum salaries by setting lower limits.

You can also configure compensation zone, and compensation zone and business unit differentials to account for nonoffice workers. Do this by specifying which address types to use, and in what order, to identify the applicable differential. For example, you're going to associate the differentials with people who work at client sites and from home. And, you want to use their remote addresses, rather than their work addresses to identify their compensation zones and differential factors. You want to identify the client site address first and the home address only if there isn’t a client site address.