As companies increasingly embrace remote work and tap into global talent pools, one of the most critical challenges we face is ensuring fair compensation across diverse markets. At Evaltas.ai, with team members spanning from Dhaka, Bangladesh to the Philippines, we’ve developed a comprehensive approach to benchmarking pay scales that ensures our remote workforce receives competitive, fair wages relative to their local markets and skill levels.
The Challenge of Global Pay Equity
When building a remote workforce across different countries, the temptation might be to apply a one-size-fits-all approach to compensation or simply pay the lowest possible rates. However, this approach is both ethically questionable and strategically shortsighted. Our philosophy centers on the principle that talent deserves fair compensation regardless of geographic location, while also recognizing the economic realities of different markets.
Our Benchmarking Methodology
1. Market-Relative Compensation Baskets
Rather than using arbitrary rates, we benchmark our positions against a carefully curated basket of similar skilled roles within each local market. This approach ensures our team members are compensated fairly relative to their peers and the value they could command locally.
For each role, we analyze:
- Similar positions in the local tech sector
- Comparable roles in multinational companies operating in the region
- Government salary data for equivalent skill levels
- Industry-specific compensation surveys
2. Skill-Level Calibration
We don’t just look at job titles, we evaluate the actual skills, responsibilities, and impact of each role. Our supervisory positions, for instance, are benchmarked against professional roles that require similar levels of expertise and responsibility. In markets like Bangladesh, this means our senior supervisors earn compensation equivalent to what a doctor might make locally, recognizing that their specialized skills and leadership responsibilities deserve commensurate pay.
3. Regular Market Reviews
Compensation benchmarking isn’t a set-it-and-forget-it process. We conduct quarterly reviews of our compensation baskets to ensure they remain current with market conditions, inflation rates, and evolving skill demands in each region.
The Benefits of Fair Benchmarking
For Our Team Members
- Competitive local purchasing power: Our team members can maintain high standards of living in their communities
- Career progression clarity: Clear understanding of how skills development translates to compensation growth
- Retention and stability: Fair pay reduces turnover and builds long-term commitment
For Our Business
- Access to top talent: Competitive compensation attracts the best candidates in each market
- Reduced recruitment costs: Lower turnover means less time and money spent on hiring
- Enhanced productivity: Fairly compensated team members are more engaged and productive
- Brand reputation: Our commitment to fair pay enhances our reputation as an employer of choice
Implementation Considerations
Data Sources and Validation
We utilize multiple data sources to ensure accuracy:
- Local recruitment agencies and their market reports
- Government statistical offices
- Professional associations and industry bodies
- Anonymous salary surveys within our professional networks
Balancing Local Markets with Global Standards
While we benchmark locally, we also ensure our compensation philosophy aligns with our company values. This sometimes means paying above local market rates when we believe the market itself undervalues certain skills or when we want to attract exceptional talent.
Transparency and Communication
We maintain transparency with our team about our compensation philosophy, though specific salary details remain confidential. Team members understand how their roles are benchmarked and what factors influence their compensation levels.
Challenges and Lessons Learned
Currency Fluctuations
Operating across multiple currencies requires careful planning and sometimes necessitates compensation adjustments to maintain real purchasing power.
Market Data Availability
In some markets, reliable salary data can be scarce. We’ve learned to triangulate from multiple sources and sometimes rely on proxy indicators when direct data isn’t available.
Balancing Equity Across Regions
Ensuring internal equity while respecting local market conditions requires ongoing calibration and clear communication about our methodology.
Looking Forward: The Future of Global Compensation
As remote work continues to evolve, we expect to see:
- More standardized global compensation frameworks
- Increased transparency in salary benchmarking
- Greater emphasis on skills-based rather than location-based pay
- Advanced tools for real-time market data analysis
Building a fair compensation structure for a global remote workforce requires intentionality, regular review, and a commitment to treating talent equitably regardless of location. By benchmarking against appropriate local markets while maintaining high standards for the value we place on skills and contribution, we’ve created a compensation framework that serves both our business objectives and our team members’ career aspirations.
The investment in fair compensation pays dividends in team loyalty, productivity, and our ability to attract top talent from around the world. As we continue to scale our global operations, this foundation of fair pay will remain central to our people strategy.
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