Location Analytics is a powerful tool that is new to the Radford Network as of the July 2022 release. In this article, we will outline four different use cases for how to leverage the tool to tackle different business issues.
Our first use case focuses on how to solve salary differentials between multiple locations.
Scenario 1: Geo Differentials
In this scenario, we have a company based in Seattle that wants to determine pay differentials for critical jobs for different regions in the United States.
To start, we will set the tool’s reference point to Seattle, select "Engineering" under jobs, choose M6 for a level, and select "Software Products & Services" for an industry. The program generates salary differentials for selected regions using the reference location of Seattle.
Scenario 2: Equity
For our second use case, Location Analytics will be used to review equity differentials in and across countries. When users select the “Compensation Type-Equity”, they can compare the value of equity granted, as well as see the all important "participation rate" when they mouse over the differential bars in the chart..
Using the same criteria as Use Case 1, the equity differentials provide insight on how to audit your global equity guidelines.
Clients with a global footprint should consider reviewing equity guidelines in all key countries. In this example, a user selecting “United States” as the reference point can select multiple countries for comparison. When the tool displays the corresponding differentials for each country, a scroll over the bar graph reveals the percentage of employees given equity. The tool can be used to both level-set upcoming equity grants as well as provide a better understanding of relative grant values across key countries.
Scenario 3: Talent Availability
The third use case concerns talent availability. Location Analytics features a global map with different-sized circles, where the size of the circle represents the indicated headcount for a location. The larger the circle, the larger the headcount. By typing the desired role into the “Jobs” filter, the map will display that role’s corresponding population across the globe. There is a zoom feature on the map that allows users to narrow down their search to a single country with the circles showing concentrations of talent but for smaller regions. Roll over one of the circles with the mouse, and the tool will display the headcount for that location.
Scenario 4: Smart Differentials
Our last use case addresses locations where data might be limited. In instances such as emerging markets, newly defined positions, or areas with low response rates, the tool can extrapolate what a salary differential would be based on corroborating data from similar job focuses from surrounding regions. To do this, turn on “Smart Differentials”, This feature leverages both the Radford Global job taxonomy and data in the RGCD database to accurately predict differentials in all countries for all job functions where data is limited. For instance, when “Poland” is set as our base of comparison to other locations in Poland, the standard differentials created show less than robust results. When “Smart Differentials” is engaged, the numbers moderate, smoothing out the comparison and providing answers where our other tools might fall short.
Location Analytics can enhance many of your compensation analyses. We encourage you to try the latest addition to the Radford Network. If you do not have access to this feature, please reach out to your Sales Manager.