Which metric reflects differences in pay based on geographical location?

The metric that reflects differences in pay based on geographical location is the Geographical Differential. This concept accounts for variations in the cost of living and market salary rates across different regions, allowing organizations to adjust compensation structures accordingly. By implementing a geographical differential, employers can ensure that their salaries remain competitive and equitable in specific areas, which can help attract and retain talent in varying locations.

This metric is particularly important in today's global and remote work environments, where employees may be working from different cities or regions that have significantly different living costs. The other options do not specifically address geographical differences in pay. Salary Range Penetration refers to how an employee’s salary compares to the overall salary range for a position, Compensation Ratio is a measure that compares an employee’s salary to the market average for their role, and Midpoint generally refers to the midpoint of a salary range but does not take geographical considerations into account.