The compensation differentials between levels of work constitute one criterion used to define:

Internal pay structures reflect the relative value of jobs within the organization. Differentials in pay recognize responsibility, skill level, and complexity between positions, supporting internal equity and progression paths.

Extract from HRCI-aligned HR knowledge (Total Rewards):

SPHR frameworks state that compensation systems must “reflect internal alignment based on job evaluations, responsibility, and career ladders.” Internal structure guides fairness and promotion planning.