The use of pay differentials is common in both the private and public sectors. Employers use this extra pay to recognize working on weekends, late at night, in locations with high costs of living, etc.
One of the downsides to pay differentials is the fact that including them for some positions may push their pay far above the established pay range for positions that it is grouped with. This can cause concerns over equity and fairness in the pay structure.
If you were a head of HR that faced this dilemma, how would you address the issue of fairness and equity?