Basic Process to Configure and Apply Zone-Based Salary Range Differentials

You need to complete these tasks to set up and use compensation zones in salary range differentials. These types of differential profiles work with only responsive salary pages and flows. Classic pages and flows ignore them.

1. Create compensation zone types using the Compensation Zones task in the Setup and Maintenance work area. It’s part of the Compensation offering, Base Pay functional area.

   You use compensation zone types, such as compensation or wage regions, to categorize zones and group them together. You need to create your zone types before you define one or more zones for a geographical boundary. You can create a zone type that contains geographical boundaries from anywhere in the world, or that contains only geographies in a specified country. When you create a zone type for a country, you can define which geography types or geographies you can select when you create the zones.

2. Create compensation zones using Compensation Zones task in the Setup and Maintenance work area. It’s part of the Compensation offering, Base Pay functional area.

   Compensation zones are geographical boundaries for a zone type, for example, the San Jose compensation zone. Zones are based on the geography hierarchy data of the master reference. You create zones in a zone type and you can associate geographies to define the zone. For example, you've the Compensation Regions zone type. You create a West Coast zone that has the state of California as one of its geographies. In a geography, you can specify a postal range. So for the state of California, for example, you can specify that the zone spans the postal codes 90001 through 90011.

   Compensation zones are intelligent enough to apply salary range differentials based on the worker’s assignment or nonassignment location. For example, they can apply the differential to the work location or a remote location, such as a client location or home address. The salary range differential identifies the compensation zone that the address is part of, and applies the factor or overriding grade rate defined for that zone.

   Optionally load compensation zone geographies using only the Export to CSV File and Import from CSV File actions for the Compensation Zones task.

3. Create zone-based salary range differentials using the Salary Range Differentials task on the My Client Groups > Compensation page. You can also create them using HCM Data Loader or HCM Spreadsheet Data Loader. You configure salary range differential details at the level of granularity that best supports your salary policies and processes. For example, you can maintain differential factors at the location level, or at the State or District level. Add compensation zone criteria and define the differentials for each zone type and zone.

   Optionally set minimum limits when you've statutory minimum salary limits that you need to enforce. You can also enable work from home processing for people working remotely, such as at client sites or from home.

4. Create salary bases using the Salary Basis task on the My Client Groups > Compensation page. On the Salary Ranges tab, add a grade rate to the salary basis. Then add the appropriate zone-based differential profile.