Are you relocating talent, hiring new talent from abroad, or seeking to establish distributed workforce salary plans?

Making the right
compensation decisions

As an integral part of your total rewards offerings, determining the “right” compensation levels is one of the most important tasks a compensation professional faces. Because statutory requirements, market data, skillsets, and roles are constantly evolving, you are continuously reviewing the components that define these compensation levels. As workforces become increasingly global and dispersed, understanding how compensation compares across borders – whether across countries, states, provinces, or even cities – is an increasingly important consideration. Cost of living data is the component that helps you evaluate your total rewards program on a global scale. AIRINC provides you with consistent cost of living data to assist both in the design of global compensation schemes and the assessment of employee compensation when crossing borders.

Evaluate Pay For Cross-Border Talent

You can greatly increase the success of domestic and international transfers if you understand the impact on the employee’s salary. With knowledge of the differences in income taxes, goods and services, and housing costs, you can holistically evaluate the salary offer.

AIRINC’s Salary Evaluation Tool helps you compare the origin and destination salary for cost of living differences  and leverages robust tax calculations that account for national, state/cantonal/provincial, and local income tax  differences. The results can help you assess if the local salary is adequate or if additional assistance is needed to help the employee transition to a lower rate of pay.

AIRINC Salary Evaluation Tool

Assessing the local salary structure before making an offer can improve your rate of retention and attraction. For example:

  • Domestic transfer: A move from Charlotte to New York City with a $100,000 salary, what salary level would you require to maintain a similar purchasing power after cost of living, housing, taxes, etc. are taken into account in a select location?
  • International transfer: In addition to gross salary differences, what are the income tax and cost of living considerations? Do you use home, host or other type of salary?

Managers can benefit from this information to assess any opportunities to proactively address any compensation challenges and increase the success of the employee accepting a transfer.

In this new environment, employees work where they live, not live where they work. Therefore, a strategically aligned rewards philosophy is important so that your pay methodology is clear for in-office and Work From Anywhere workers. It is imperative to establish a process for setting pay, as it will assist in ensuring pay equity and fairness relative to others.

See how the Salary Evaluation Tool works

Global Reward Index Calculator

Quickly and easily calculate global allowances using price ratio cost of living data!

Many companies offer compensation allowances in addition to salary, and want these to equate globally.

The Global Reward Index Calculator can help you establish globally equitable allowances for:

  • Remote work
  • Wellness
  • Fitness
  • Small performance awards
  • Cash
  • Bonus / stipend

The calculator uses a cost of living index to adjust your global values and can translate these into an easy to use global reference for quick, simple and transparent calculations.

Assess Geographic Pay Differences

When adapting or maintaining regional salary structures, access to cost of living data can help you determine geographic cost differences within your salary structures. Cost of living data is increasingly being used to assess where costs differ, helping to inform decisions on differentiating midpoints across multiple salary structures. With this growing need, AIRINC provides our Geographic Differential Index (GDI) to replace or supplement your market data in this assessment. The GDI provides you with a thorough, researched, and comprehensive database of cost of living indexes by city on a global basis. You can use the GDI to deliver a more streamlined review of your geographically differentiated salary structures, slot cities into an existing structure where market data
is scarce or even non-existent, and plan for remote workforce needs.

The GDI includes considerations for:

  •  Goods and Services
  • Housing
  • Income Tax

From our Blog

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