Accounting for Location in Pay Equity Analysis
You want your employees to have the same standard of living, no matter where they are. An employee who lives in Munich may make more than one who lives in Berlin, where the relative cost of living is lower. To achieve and maintain pay equity (and use this as the basis for certification–for example), you need to ensure that compensation across countries, provinces and states, and cities is fair and equitable. When you add remote work to the equation, matters become more complicated.
How do you factor these considerations into your analysis to ensure you’re a fair pay employer?
There are a couple of approaches employers can take to take into account geographical differences in determining compensation: a global model or smaller individual models. The one you choose depends, in large part, on the size of your organization.
Listen to this week’s global Coffee Talk to learn more about the key components of geographic pay differences and how to capture country-specific details in your pay equity analysis.
Friday Coffee Talk from Planet Fair is a podcast/videocast series co-hosted by PayAnalytics founder Margrét Bjarnadóttir and Henrike Von Platen, founder and CEO of the FPI Fair Pay Innovation Lab in Berlin. It is available through all podcast platforms as well as on YouTube as a videocast.