Geographic Pay Differentials in Practice
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Inside This White Paper

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Geographic Pay Differentials in Practice

Analyzing geographic salary differentials is an important part of compensation planning. It is a way for organizations to follow local market pay rates for labor.

Geographic Pay Bands

Geographic pay differentials are reported as a percentage difference from a base location. Advantages include treating locations that might have small differences consistently, having fewer numbers to work with, and being easier to handle small fluctuations over time.

Conclusions

While results highlight some trends in the use of geographic salary differentials, their administration, and data sources, suggest that a variety of approaches are used in practice. Learn about the different ways to help calculate geographic pay differentials and how they help benchmark compensation in different geographic regions.  

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Compensation Data From SalaryExpert

We have salary information and cost of living data for thousands of job titles and locations around the world.
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About SalaryExpert

SalaryExpert, powered by ERI, was launched in 2000 with a mission to provide employers, human resource professionals, and job seekers with compensation data. Backed by over 30 years of verified and reliable salary data, SalaryExpert draws on ERI’s expertise in salary and cost of living data to provide the public with excellent tools for evaluating career, relocation, compensation, and education decisions. We want to make your compensation planning and career evaluation easier with access to salary survey data for more than 8,500 locations, 1,100 industries, and 11,300 jobs including 800 executive positions.
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Our Process

Data are gathered from 3 sources: surveys we conduct, surveys purchased from other organizations, and reports from publicly traded organizations.

SalaryExpert conducts advanced analytics to accurately capture the market value of each occupation in our salary survey database

Explore SalaryExpert’s wage, salary, and compensation databases of over 11,000 job titles, 1,100 industries, and 8,500 locations.

After compiling the data, we conduct QA to ensure data are of the highest quality.

SalaryExpert analysts double-check the results for each job every quarter.

Data Collection

Data are gathered from 3 sources: surveys we conduct, surveys purchased from other organizations, and reports from publicly traded organizations.

Data Verification

After compiling the data, we conduct QA to ensure data is vetted, verefied, and of the highest quality.

Analysis

SalaryExpert conducts advanced analytics to accurately capture the full scope of each occupation in our salary survey database.

Quality Assurance

SalaryExpert analysts double-check the results for each job every quarter. Our verified salary survey information helps set the benchmark pay.

SalaryExpert Results

Explore SalaryExpert’s wage, salary, and compensation databases of over 11,000 job titles, 1,100 industries, and 8,500 locations.