Attracting and retaining key talent in new markets

    May 04, 2023 @ 08:31 AM / by Weston Hicks

    Comp Case Study

     

    Attracting and retaining key talent in new markets

    A San Francisco-based European company was looking to break into a new growth industry that required hiring and relocating talent to different cities in the U.S.  

    Challenges

    They faced two main challenges:

    • How to hire specialized labor in new markets while maintaining fair and competitive pay practices
    • How to set market rates of pay in the absence of market data (since this was a new industry and adequate data was not available in the new locations)

    Solution

    They reached out to AIRINC to ask if other companies we work with had encountered these challenges and, if so, how did they address it?

    The answer was to supplement their existing market rates of pay for these roles with cost-of-living data (goods and services, housing, and taxes) to see how pay translated to the new locations where they needed to hire/move talent. In the end they were able to bucket the locations into tiers based on their cost-of-living profile by comparison to San Francisco.  

    In the end they were able to bucket the locations into tiers based on their cost-of-living profile by comparison to San Francisco.

     

    Example: The values in this exhibit are for illustrative purposes only
    Job grade 10 mid-point = USD 120,000 in San Francisco CA

    Comp case study dataConclusion

    This approach allowed them to avoid setting new salary structures for their new locations and to provide a pay structure that was equitable and fair to their employees. As more market data becomes available, they will continue to benchmark their pay levels accordingly. This project helped them to quickly respond to a pressing business need to attract and retain key talent in new markets and to expand their business.

    Assess Pay Differences

     

     

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    Topics: geographic differentials, salary structures, Compensation, Global Reward

    Weston Hicks

    Written by Weston Hicks

    Weston joined AIRINC in 2012 working with clients in a client facing role. Over that time he has assisted many clients with challenges including on-site surveys. He has transitioned into a product marketing role that allows him to engage clients and prospects via presentations and webinars.