Example of How a Location or Compensation Zone Differential Applies
You're hiring two full-time people to work in New York and Miami. They both have the Individual Contributor 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 location or compensation zone and the differential for New York is 1.2 and for Miami is .8.
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.
| 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 | 120,000.00 to 240,000 | 80,000 to 160,000 |
| Midpoint (USD) | 150,000 | 180,000 | 120,000 |
| Compa-Ratio | 80 | 72.22 | 83.33 |
| Range Position | 20 | 8.33 | 125.00 |
| Quartile | 1 | 1 | 2 |
| Quintile | 2 | 1 | 2 |