Jan 3 (edited) • General discussion
Global Compensation: Equal Pay for Equal Work
The biggest challenge in global teams? Fair pay across different markets.
Here's how leading companies balance local rates with global equity.
Pay transparency is changing everything. Companies like Buffer publish their entire salary formula online. This creates trust but also raises tough questions about geographic pay differences.
A remote-first startup shares: "We tried location-based pay but switched to global rates. Yes, it's more expensive, but our retention went up 40%."
Smart approaches to global pay:
- Use salary bands instead of exact location adjustments. Group countries into 3-4 tiers based on market rates and cost of living.
- Consider total compensation, not just salary. Some teams offset lower base pay with higher equity in expensive markets.
- Make your pay philosophy public. Explain how you set rates and handle location changes. Transparency builds trust.
Your compensation action plan:
- Review your current global pay spread. Are differences based on clear factors or historical accidents?
- Create a simple pay calculator. Include base salary, equity, benefits, and location factors.
- Document your compensation philosophy. Share how you balance market rates with internal equity.
Quick wins: Start tracking pay equality metrics. Look for unexplained gaps between similar roles in different locations.
How does your company handle pay across locations? Share your approach!
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Global Compensation: Equal Pay for Equal Work
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