Compensation Zone-Based Differential: Options for When Work from Home Is Yes, But Evaluation Should Use Work Locations

You can configure compensation zone-based salary range differentials to evaluate remote worker addresses and calculate salary ranges. And you can specify the processing order for up to three address types.

When using this kind of differential, can you use work locations to identify the applicable differential for certain remote workers? For example, in some US states, remote workers have the option to go into an office. Or they need to go in 1 or 2 days a week. So for some states, even when Work from Home is Yes, you want the differential to use the work location.

Here are three configuration options that let you use people’s work locations to identify the applicable differentials, even when Work from Home is Yes.

Separate Differentials and Salary Bases

In this approach, you can create two different differential profiles for the remote workers.

One differential doesn’t process remote workers, thus evaluating only people’s work locations.
Another differential does process remote workers and specifies to use home addresses.

Each set of remote workers needs to have a different salary basis, such as, US Remote by Work and US Remote by Home.

Different Field to Record Actual Work from Home Status

In this approach, you can use a different assignment field or a descriptive flexfield to record the actual work from home status. The value of this other field could typically be the same as the value of the delivered Work from Home assignment field. But you can vary the value for people in the states where differential processing should use the work location instead of remote addresses.

Where differential processing should use remote workers’ home addresses, make sure that the Work from Home assignment field is Yes.
Where differential processing should use remote workers’ work locations, make sure that the Work from Home assignment field is No.

Then you can create a differential that processes remote workers. Processing will evaluate the addresses as specified.

Person Addresses with Work Locations

In this approach, you extend the address type lookup to let you set up a work address as another person address. Next, for the remote workers where differential processing should use their work location, you create the appropriate work person addresses. Then you create a differential with remote worker processing enabled. Processing will evaluate the specified address types in the specified order.

For example, a remote worker has a home-type address in Jacksonville, FL, a work-type address in Orlando, FL. And their Work from Home is Yes. Their differential has the Work address type as sequence 1 and Home address type as sequence 2, so differential processing uses their Orlando, FL address.

This approach means that every applicable remote worker will also have their work address maintained as one of their person addresses. Whenever the work location changes, someone also needs to manually change the corresponding person address.