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Pay Differentiation Variables (PDVs)

Pay Differentiation Variables are the individual factors which determine individual employee compensation.  PDVs can be anything the organization determines to be an important factor for employee and organizational success.  PDVs align your compensation to the characteristics you value in your employees. PDVs are generally organizational or industry based norms. There is no limit to the number of PDVs which can be incorporated into a DinamiComp® system.

Client Defined Limitations

Low Salary
The minimum compensation for a specific position or class of positions.

High Salary
The maximum compensation for a specific position or class of positions  This salary would be reserved for employees who meet all of the positional PDVs.

Setting the maximum total spend in the form of the organizational limitation for the increase in salaries for the upcoming period (i.e. fiscal year).  Budgetary limitations are generally expressed in the form of a percentage increase from one period to the next.

The maximum annual increase for each employee expressed as a percentage of current salary.

The minimum annual increase for each employee expressed as a percentage. This parameter can range anywhere from as low as negative 100% to no upper limit. This can otherwise be known as the hold harmless allowance or cost of living adjustment.


Control your human capital budget even during the transition to DinamiComp®.

Attract and retain employees who align professionally with your organization.

Defines clear employee expectations relating to compensation.

Scenario Management
Create, compare, and contrast various compensation scenarios.

Reduces bias in the hiring process.

Organizational size is not a limiting variable.


  • Identify and involve stakeholders
  • Develop PDVs
  • Set limitations
  • Develop draft compensation model
  • Cost model to current staffing
  • Tweak system for final implemenation
  • Implement
  • Monitor and adjust periodcially: monthly, quarterly, or annually