How Salary Metrics Change According to the Grade Rate and Salary Range Differentials
Salary metrics include minimum, maximum, midpoint, compa-ratio, range position, quartile, and quintile. Metric calculations use the grade rate and differential profile from the person's salary basis, as shown here. They also use the full-time equivalent (FTE) value from the employment record.
The optional grade rate provides the information for the person's base salary range. The optional differential profile provides the multiplier that calculations use to automatically adjust the person's salary metrics. Or, it provides an alternate grade rate to use instead of the grade rate associated with the salary basis. The differential profile has multipliers configured for one of these criteria:
- Location
- Business unit
- Location and business unit
- Compensation zone
- Compensation zone and business unit
Profiles with the compensation zone or compensation zone and business unit criteria might have alternate grade rates configured instead of multipliers. If the person's location is blank or not defined in the differential profile, metric calculations use the information from the grade rate.
For example, you transfer someone with an annual salary amount of 120,000 USD and the US Prof3 Annual grade rate to a new location. The person's salary basis includes a differential profile with multipliers or alternate grade rates by location. Here are the salary metrics for their original and new locations, which have differentials of 1 and .8, respectively.
| Salary Metrics | Original Location (1) | New Location (.8) |
|---|---|---|
| Annual Salary | 120,000 | 120,000 |
| Range (USD) | 100,000 to 200,000 | 80,000 to 160,000 |
| Midpoint (USD) | 150,000 | 120,000 |
| Compa-Ratio | 80 | 100 |
| Range Position | 20 | 50 |
| Quartile | 1 | 3 |
| Quintile | 2 | 3 |