Zone-Based Salary Range Differential Processing
Differential processing identifies the minimum, midpoint, and maximum points of the salary range using the assignment grade and the grade rate of the salary basis. When the worker is working from home, it then decides if the differential profile has work from home processing enabled.
- If not enabled, it finds the work location to process. If there’s no work location or a location isn’t included in the differential profile, the salary basis grade rate is used in payroll processing. No differential is applied.
- If enabled, it finds the person addresses to process.
Next differential processing finds the compensation zone type and zone for the identified address of work location or person. And it applies the differential factor or overriding grade rate for the corresponding compensation zone type and zone. It uses the differential factor or overriding grade rate to recalculate the minimum, midpoint, and maximum points of the salary range.
Work Location Example
Here’s an example of this differential processing based on the work location for two workers in California. They both have the same assignment grade and salary basis. Their locations put them in different compensation zones, so their salary ranges and related salary metrics are thus different.
| Assignment Info | Worker 1 | Worker 2 |
|---|---|---|
| Grade | ZMCP IC1 | ZMCP IC1 |
| Work Location | Bakersfield Branch Office | Redwood Shores HQ |
| Salary Info | ||
| Salary Basis | Individual Contributor | Individual Contributor |
| Grade Name | ZMCP IC1 | ZMCP IC1 |
| Salary Range | 50,000 – 100,000 USD annually | 150,000 – 300,000 USD annually |
| Compensation Zone Type | Individual Contributor CA | Individual Contributor CA |
| Compensation Zone | Bakersfield | Headquarters |
| Salary | 61,000 USD annually | 161,000 USD annually |
Remote Work Example
Here’s how differential processing would change the salary range for Worker 2 if they were a remote worker. They live in Modesto, CA, which is in the same compensation zone as Bakersfield.
| Assignment Info | Worker 2 |
| Work Location | Redwood Shores, CA |
| Home Address | Modesto, CA |
| Grade | ZMCP IC1 |
| Working at Home? | Yes |
| Salary Info | |
| Salary Basis | Individual Contributor |
| Grade Name | ZMCP IC1 |
| Salary Range | 50,000 – 100,000 USD annually |
| Compensation Zone Type | Individual Contributor CA |
| Compensation Zone | Bakersfield |
| Salary | 161,000 USD annually |