Compensation Glossary

Geographic Salary Differentials

The percent difference between pay levels for an occupation in two or more geographic areas. Due to the demand for and supply of labor, an employee may be paid more or less depending on where she works. This makes setting branch-office salaries complicated, as they must be adjusted for the local labor market pricing (and in some cases the local cost of living). ERI's Geographic Assessor and Salary Assessor software aid in planning salaries for positions in multiple locations. See www.erieri.com.