Compensation Case Study - Geographic Differential Index

    Apr 01, 2022 @ 06:39 AM / by Andrea Downing

    Comp case-1

    Client Challenge #9:

    A multinational company has a large U.S. domestic program with hundreds of moves each year. They wanted to establish a fair and consistent approach to transition payments for U.S. domestic moves but they struggled to determine which moves and locations warranted a high-cost location move..

    Washington, DC at the Tidal Basin and Jefferson Memorial during spring.

    Solution:

    When adapting or maintaining regional salary structures in the U.S.A., access to cost of living data can help determine geographical cost differences within a company's salary structures. Cost of living data is increasingly being used to assess where costs differ, helping to inform decisions on differentiating midpoints by location.

    AIRINC leveraged geographic differential indices to supplement the client’s market-based salary data. The AIRINC indices were used to deliver a more precise review of geographically differentiated salary structures allowing for the slotting of cities into the existing structure where market data was limited. This tool solved a major issue for this client's U.S. salary program!

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    Topics: Cost of Living Surveys, Global Mobility, Workforce globalization, Employee Compensation, Remote worker, Global Compensation, Total Reward, Distributed Workforce, Compensation, Global Reward, GDI, Transition Payment

    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.