Salary Differential Plans

Differential pay is non-performance based pay given to accommodate a specific working condition. Many employers face various complexities in managing salary programs because of salary differential needs. The most prominently requested salary differential is Geographic/Location Based Pay. Sensitive compensation issues can arise in connection with the relocation of employees from comparatively high to comparatively low salary areas, and vice versa. In addition, if a company is trying to recruit a new executive who is currently working in another city, the pay differentials need to be examined and taken into account when designing the executive’s compensation package. Two methods that are used to determine Geographic/Location Based Pay are: Salary Surveys and Cost of Living Indexes. Other samples of salary differential include:

 

• Shift Differential
• Hazard Pay
• On-Call Pay

 

To find out more on how Compensation Resources, Inc. can help your company with Salary Differential Plans, please contact us or call us directly to speak with our compensation consultants at 877-934-0505.