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..
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!