Compensating Differential

Business, Legal & Accounting Glossary

Definition: Compensating Differential


Compensating Differential


Full Definition of Compensating Differential


A positive or negative amount by which the salary or payment for a job is adjusted in accordance with the attractiveness of that job for potential workers. Difficult, dangerous, or otherwise undesirable jobs tend to pay more to help recruit and retain workers, while employers are able to offer less overall money for more desirable jobs that are preferred by job-seekers.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/compensating-differential/
Modern Language Association (MLA):
Compensating Differential. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 29, 2024 https://payrollheaven.com/define/compensating-differential/.
Chicago Manual of Style (CMS):
Compensating Differential. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/compensating-differential/ (accessed: March 29, 2024).
American Psychological Association (APA):
Compensating Differential. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/compensating-differential/

Definition Sources


Definitions for Compensating Differential are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.