<aside> 💡 At Remote, we believe in fair compensation for our employees, and our Total Rewards Philosophy includes the use of Geo Pay. This page outlines our pay philosophy specifically around the use of Geo Pay ranges and what that entails.
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A geo-pay differential, in simple terms, means that people in different locations get paid different amounts for doing the same job. This is because the cost of labor and market rates can vary from place to place. So, if you work in location where there is a higher labour cost, you might get paid more than someone located in a country that has a lower cost of labour. Companies with international operations and a globally distributed workforce such as Remote consider geographic pay differentials as part of their global compensation strategy to remain competitive in various markets.
To explain it simply, if someone works in the Netherlands, they would be paid at 80% of what a person in the US doing the same job would make. For example, if a US role’s salary midpoint is $100,000, the Netherlands equivalent midpoint would be $80,000 (80% of $100,000).
Each country falls into its own Geo Range, which means that even if two countries are in the same region, they might have different pay ranges.
Remote currently does not offer global pay (same pay for the same role,regardless of location). -Director levels and above are benchmarked at min. 80% of a Global US rate, this is due to impact of the roles and to ensure we are able to attract talent in a competitive market.
-Senior Manager levels are benchmarked at min. 60%, which will allow a smoother salary progression from M4 to M5, ensuring a competitive position when compared with the market.
We are using several factors when we make a compensation decision.
We've used data from AON/Radford to make our geo pay ranges more accurate and in line with the job market. To do this, we've taken data from all countries and compared it to a common standard, which is the United States.
For instance, we've looked at jobs in Canada and compared them to similar jobs in the United States. This comparison helps us figure out how jobs in each country compare to the US standard. We do this for all job positions in every country, and it gives us the information we need to figure out the statistical factors used to create our geo pay ranges. In simpler terms, it helps us decide how much to pay people in different countries based on their job and where they work.
AON/Radford is known as the Gold Standard when it comes to compensation data.