Accounting for Location in Pay Equity Analysis

To achieve and maintain pay equity, you need to ensure that compensation across countries, provinces and states, and cities is fair and equitable. But how do you do that?

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Accounting for Location in Pay Equity Analysis

You want your employees to have the same standard of living, no matter where they are. An employee who lives in Munich may make more than one who lives in Berlin, where the relative cost of living is lower. To achieve and maintain pay equity (and use this as the basis for certification–for example), you need to ensure that compensation across countries, provinces and states, and cities is fair and equitable. When you add remote work to the equation, matters become more complicated.

How do you factor these considerations into your analysis to ensure you’re a fair pay employer?

There are a couple of approaches employers can take to take into account geographical differences in determining compensation: a global model or smaller individual models. The one you choose depends, in large part, on the size of your organization.

Listen to this week’s global Coffee Talk to learn more about the key components of geographic pay differences and how to capture country-specific details in your pay equity analysis.

Friday Coffee Talk from Planet Fair is a podcast/videocast series co-hosted by PayAnalytics founder Margrét Bjarnadóttir and Henrike Von Platen, founder and CEO of the FPI Fair Pay Innovation Lab in Berlin. It is available through all podcast platforms as well as on YouTube as a videocast.

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#62 — “Mindset change challenge:” Pay bands, pay philosophy, and closing the gap

What happens when an employer can’t adequately explain why an employee’s pay is what it is? Or what if their explanation is based on “the old way” of doing things? In this coffee talk, Margrét and Henrike discuss pay bands, pay philosophy, the EU pay transparency directive, and how to minimize confusion while trying to close the gender pay gap.

Listen to episode 62

#61 — Dietmar Knoess on PUMA’s Fair Pay Leadership

In this coffee talk with Henrike von Platen and Dietmar Knoess of the PUMA group, we hear about both the pleasant surprise and the challenges in PUMA’s journey into fair pay leadership.

Listen to episode 61

#60 - Sana Zafar on the surprising effects of pay gaps

It’s intuitive that a gender pay gap would leave women feeling less than satisfied in the workplace. But according to Sana Zafar, our coffee talk guest, the real effect is more nuanced. Pay gaps lead to lower satisfaction among both women and men, but through different mechanisms.

Listen to episode 60

#59 – Iceland’s CEO Gender Gap with Thora Christiansen

University of Iceland Researcher Thora Christiansen has been looking into why, despite Iceland’s intensive work on pay equity, there are still so few female CEOs. In this coffee talk, Thora joins Margrét to talk about her research into this problem—and a few possible solutions.

Listen to episode 59

View all Coffee Talk episodes