Compensation Case Study - Cost of Labor

    Nov 16, 2021 @ 06:22 PM / by Andrea Downing

    MALAYSIA,_Kuala_Lumpur_3_-_AH

    Client Challenge:

    A manufacturing company was opening a new office in an APAC country and relocating a group of employees from several other APAC countries. The company had access to local cost of labor for the new APAC location but needed to see how the local salaries would impact this group of employee’s current standard-of-living. They wanted to use both a cost of living data source and a cost of labor data source to help them arrive at the salary ranges for these positions in their new location.

    Solution:

    AIRINC recommended the comparison of local housing, goods & services, and tax data between the relocating employee’s home locations and the new APAC office location.

    The two-city local cost of living comparison, including tax details, allowed the company to analyze what salaries the employees would need to earn (based on cost of living) in order to maintain a similar standard-of-living and purchasing power.

    This data also allowed the company to analyze their localized cost of labor salaries and determine how they should be adjusted for this group of relocating employees.

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    Topics: Cost of Living, Housing, Global Mobility, Workforce globalization, Employee Compensation, Global Compensation, alternative pay approach, Total Reward, Compensation, Data Analytics, Cost of Labor

    Andrea Downing

    Written by Andrea Downing

    Andrea joined AIRINC in 2014 as a Client Solutions Executive with over fifteen years’ experience in global mobility with expatriate data consultancies. Andrea is the first point of contact for clients within the EMEA region that are managing their first international assignments; she also develops relationships with partner companies in EMEA. Andrea’s experience ranges from conducting pricing surveys to managing consulting projects, providing a full understanding of all the issues clients face with cross-border moves. Andrea has a BSc (Hons) Degree in Biological Sciences from Middlesex University.