---
title: Compensation Case Study - Geographic Differential Index
description: A multinational company has a large U.S. domestic program with hundreds of moves each year..
---

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# [Compensation Case Study - Geographic Differential Index](https://airshare.air-inc.com/compensation-case-study-geographic-differential-index)

 Written by [Andrea Downing](https://airshare.air-inc.com/author/andrea-downing) | Apr 01, 2022 @ 10:39 AM

<https://www.air-inc.com/setting-the-pay-level-2/>

## 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](https://www.air-inc.com/domestic-solutions/) but they struggled to determine which moves and locations warranted a high-cost location move..

## Solution:

When adapting or maintaining regional salary structures in the U.S.A., access to [cost of living data](https://www.air-inc.com/services/allowances/cost-of-living-allowance/) can help determine geographical cost differences within a company's salary structures. [Cost of living data](https://www.air-inc.com/services/allowances/cost-of-living-allowance/) is increasingly being used to assess where costs differ, helping to inform decisions on differentiating midpoints by location.

AIRINC leveraged [geographic differential indices](https://www.air-inc.com/services/solutions/geographic-differential/) to supplement the client’s market-based salary data. The [AIRINC indices](https://www.air-inc.com/services/solutions/geographic-differential/) 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!

[Contact us to learn more](https://www.air-inc.com/contact-us/?utm_campaign=2021Compensation&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz--12uG7YogeIlofIiLVzL3cUNgdPpNqCkZZ-LPM5VUdHaztm_D4KUOt0uWDOLoMsu8OCpzY)

[View full post](https://airshare.air-inc.com/compensation-case-study-geographic-differential-index)

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