Pay and Location

What are the Key Issues for Employers?

Reilly P | HR Network Paper MP29 | Institute for Employment Studies | Mar 2004

From the employer's perspective, what are the advantages and disadvantages of setting base pay at different levels depending upon location? How does this compare with paying local allowances as an alternative?

Local base pay or local allowance systems face common issues compared with using national renumeration structures but there are differences. We consider both the general cases for and against localised pay, and specific points of difference between the alternative routes. We conclude with a checklist of points for employers to consider before they proceed down the local pay route.