Smart Differentials is a new and innovative approach that uses artificial intelligence and the power of the Radford Global Compensation Database (RGCD) to predict compensation cost differentials even where limited market data is available. Only RGCD data is used to calculate Smart Differentials, no other data source is used.
How does it work? Smart differentials are estimated for all job focuses and job families and calculated at the job level based upon the reference location selected. This methodology leverages all data in the RGCD database and by using the Radford Global Job Architecture, can accurately predict differentials. Where there is limited or no data at the job focus level, Smart Differentials will triangulate from similar job focuses within surrounding regions in and across countries, as well as other relevant job areas within that location.
Smart Differentials can also be used where there is sufficient data at the job focus level. For example, let’s review the job focus “software development” for a reference location and other selected locations within or across countries. Where there is sufficient data, users can review the actual differentials. When analyzing different families within a focus, turn on Smart Differentials when multiple job families or job levels are combined. The feature takes into account the differences in employee distribution that may impact the differentials.
We believe Smart Differentials is a powerful feature of our Location Analytics tool and we encourage you to try it out and provide feedback on the value it offers to your organization.