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DC vs. NY
Recruiting & Staffing
DC vs. NY
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I'm trying to come up with a salary adjustment factor from DC to New York city. The cost of living calculators I've used all come up with 50%, but when I look at salary surveys the salaries are only a
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Forums » Topic Forums » Recruiting & Staffing » DC vs. NY
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DC vs. NY
posted at 5/21/2010 3:35 AM EDT
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Posts: 58
First: 12/1/2006 Last: 9/2/2011 |
I'm trying to come up with a salary adjustment factor from DC to New York city. The cost of living calculators I've used all come up with 50%, but when I look at salary surveys the salaries are only about 8% higher in NY. The problem too is that the job is in NYC but people won't live there in reality. Any suggestions? Thanks. |
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DC vs. NY
posted at 7/8/2010 9:03 AM EDT
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Posts: 2
First: 3/25/2010 Last: 7/8/2010 |
You have alluded to a very important aspect of cost-of-living information. If your candidates wonât be living in New York City (e.g. Manhattan), it is critical that your data be based on locations appropriate for someone working, but not living, in the city. For example, using Runzheimer Internationalâs cost-of-living information and assuming a homeowner with a family of 4, the cost-of-living difference between the Washington DC area and New York City locations varies from 11% to 92%.
Another key element is how you use this cost-of-living information in your salary program. I would not recommend using cost-of-living data alone to establish salaries. I recommend using your local New York City salary data and cost-of-living information to adjust the salary up (or down) based a standard set of criteria. Often companies will use a tiered model to adjust salaries. For example, if the cost of living difference in a location is between 0-10%, no adjustment to salary will be made. For 11-20%, a 5% salary adjustment will be made, etc. Another approach is to use the local salary and provide a cost-of-living allowance based on the difference between Washington DC and New York City locations. A benefit is lower company cost because the allowance is not permanent (typically 3-5 years) and the company still provides financial assistance to help employees adjust to a higher cost-of-living area. I hope you find this beneficial. Karol Koenen Runzheimer International kck@runzheimer.com www.runzheimer.com |
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DC vs. NY
posted at 8/21/2010 3:29 AM EDT
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Posts: 1
First: 8/21/2010 Last: 8/21/2010 |
Karol,
Thank you for your posting. Your information is very interesting to me. I am the talent manager for a firm located in the US Virgin Islands working with my leadership to establish a salary program. Your recommendation to adjust salaraies to local salary data would not work for us b/c the salaries are considerably lower yet not in the line with the COL in the USVI. I am curious to know more about the 3-tiered model, if your data includes information on the USVI and how it compares to a product like ERI's Relocation Assessor which I am currently considering purchasing. Thank you. Nancy torresn@icmcvi.com |
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