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Log InIf you have a workforce, it’s 99% likely that your team is distributed across multiple locations. This means you’re alongside the rest of us trying to figure out what excellence looks like. It also means you’re in a competition for talent in many different geographic markets.
Factoring in the current economic climate adds further complications, as you need a compensation program that optimizes for competitiveness while enabling you to conserve cash.
While the simple administration of a single pay strategy for all employees may sound tempting, it comes with the risk of overpaying for talent. That’s where implementing a compensation plan based on geographic pay differentials can help. A well-defined pay program for a distributed team can help increase offer acceptance and retention while minimizing burn and dilution.
Read on to learn how OpenComp’s Location Strategies can help you easily adopt and apply remote pay policies, so you can build a compensation program that supports your company’s objectives.
Set up a remote-based compensation program in seconds with Location Strategies.
Traditional compensation planning relies on siloed spreadsheets, multiple data sources, and manual calculations to determine employees’ compensation based on their geographic location. Not only does this require a lot of time and resources, but it also invites errors into your planning and makes it difficult to ensure consistency. (And we all know how many issues that inconsistencies create.)
Location Strategies eliminates this tedious process with our in-app templates, which allow you to adopt the exact same remote pay policies that today’s fastest growing organizations utilize in just seconds. Within your organization’s settings portal, you’ll see five proven strategies for location-based pay:
- Local: structure your pay based on local markets, and stay competitive where your employees live.
- Headquarters: simplify your approach to compensation and align to where your business is based.
- National Average: simplify pay practices for a globally distributed workforce.
- Tech Exception: assign a premium for in-demand tech employees, and improve your chances of attracting in-demand top tech talent.
- Premium Cities: stay competitive in top cities while simplifying your geo strategy.
With Location Strategies, you’ll do away with the spreadsheets and guesswork that normally accompany managing a geographic pay program. By utilizing one, unified system, you'll also ensure fairness and consistency across your pay programs.
Build a customized remote pay policy that supports your organization’s unique goals in Location Strategies.
Custom Strategy gives you complete control over your remote pay policy, while still fully automating its implementation. Every aspect of OpenComp Location Strategies becomes editable with a Custom Strategy selection. You can even change tier names, add new tiers to your strategy, and freely move locations between tiers.
Custom Strategy also introduces two editable overrides into OpenComp Location Strategies:
- Job Area Overrides allow you to remove specific job areas from your overall remote pay policy, and instead place all employees within that job area directly into specific tiers. This is an incredibly useful tool for recruiting and retaining your most in-demand positions.
- The Executives Override ties all of your executives to one tier, allowing you to benchmark executive pay with consistency.
Easily test and apply remote pay policies that extend runway and improve retention with Scenario Modeling.
Just as you like to tweak and optimize your financial plan, you need a tool that empowers you to test your location-based pay plan – especially when you’re creating a compensation program to attract and retain top talent while effectively managing burn.
After implementing a geographic compensation strategy that competitively benchmarks each employee to the correct market, depending on their location, job area, or job type, or selecting a pre-built, common strategy to start, you have the freedom to test different strategies to fit your company’s needs.
OpenComp’s Scenario Modeling empowers this optimization process by enabling you to see how utilizing different location strategies would impact your company, departments, and employees. That way, you can answer questions like “What would the cost implications be of using a local-based pay strategy versus benchmarking all employees to our company’s headquarters?”
When you create a new scenario in OpenComp, you’re presented with a duplicate of your business, so that you can evaluate the impact of utilizing different remote-pay based strategies instantly. If you’ve built ranges in OpenComp Range Builder your ranges will also be carried over into the new scenario, so you won’t have to spend time manually rebuilding your business in order to model new strategies.
By using Scenario Modeling in OpenComp, you’ll minimize burn and dilution while optimizing for competitiveness in just a few clicks.
Become a compensation champion overnight with OpenComp Design Studio.
OpenComp Location Strategies and Scenario Modeling are features of the OpenComp Design Studio Solution.
Design Studio makes it easy to create professional-grade compensation programs that are optimized for effectiveness. You’ll execute with expertise, surface key insights, and simplify your entire comp admin in just a few clicks. Begin using OpenComp Design Studio, and become your organization’s compensation champion.
Lexie Sirak is a Senior Campaigns Coordinator at OpenComp and previously worked at JPMorgan Chase & Co. Connect with her on LinkedIn here.
