ORGANIZATIONS WITH MULTIPLE LOCATIONS
Organizations with offices in multiple locations with a high variance in the cost of living may choose to calculate pay scale equity by all locations combined or by each office location. If an organization decides to calculate by office location, the achievement level is determined by the office location that has the highest compensation scale ratio. See Calculations for an example of the outcomes stemming from these different calculation paths.
SCOPE OF COMPENSATION
While organizations are encouraged to factor in all forms of compensation, such as a flexible work schedule, vacation days, transportation stipends, performance awards, bonuses, and stock options when evaluating the equity of senior management compensation relative to that of the lowest paid workers, for the purpose of this metric, organizations need only report on the differential relative to base salary.
SCOPE OF EMPLOYEES
Indicator metrics apply to all of the following groups:
- Employees (see definition in the General Clarifications)
- Contract workers
- Interns
