<aside> đź’ˇ 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.
</aside>
Geo pay ranges refer to the practice of adjusting employee compensation based on geographic location. In simple terms, this means that people performing the same job may receive different salaries depending on where they are located. This adjustment reflects differences in the cost of labor and market rates across various regions. For example, an employee in a region with a higher cost of labor may be paid more than a counterpart in a region with a lower cost of labor. Companies with global operations, like Remote, use geographic pay differentials as part of their compensation strategy to remain competitive across different markets.
We use geo pay ranges to align employee compensation with local market conditions, ensuring fairness, competitiveness, and cost efficiency across our global workforce. By adjusting salaries based on the cost of labor in different regions, we can attract and retain top talent, maintain internal equity, and manage compensation expenses more effectively. This approach supports sustainable growth and global expansion while ensuring that our employees feel fairly compensated relative to their peers in similar roles within their specific markets.
Geo pay ranges assign different salary levels to the same role based on the employee's location, using the United States as the benchmark. For example, if an employee works in the Netherlands, they would be paid 80% of what a similar role would earn in the US. To illustrate, if the midpoint salary for a role in the US is $100,000, the equivalent role in the Netherlands would have a midpoint of $80,000. This method ensures that compensation is competitive within local markets while remaining anchored to a consistent global standard.
Each country is assigned its own Geo Range, meaning that even countries within the same region may have different pay ranges. Currently, Remote does not offer global pay (which would provide the same pay for the same role, regardless of location).
Additional considerations for specific levels:
We've utilized AON/Radford data to enhance the accuracy and market alignment of our geo pay ranges. Our approach involves comparing data from all countries against a common benchmark—the United States.
For example, we compare job roles in Canada to their U.S. counterparts. This process helps us understand how positions in each country relate to the U.S. standard. We apply this method across all job positions in every country, which provides the necessary data to determine the statistical factors for our geo pay ranges. In essence, this approach guides our decisions on compensation for employees in different countries based on their role and location.
AON/Radford is known as the Gold Standard when it comes to compensation data.