GitLab as a global remote work org (albeit centralized) has dealt with similar issues and found solutions we could adapt and adopt. A really fast and easy way to set rates would be to use Gitlab’s calculator:
Something to consider about localizing rates from Gitlab’s compensation page in the handbook:
Why we pay local rates
Competitive rates for roles vary depending on regions and countries. We pay a competitive rate instead of paying the same wage for the same role in different regions. Paying the same wage in different regions would lead to:
- If we start paying everyone the highest wage our compensation costs would increase greatly, we can hire fewer people, and we would get less results.
- A concentration of team members in low-wage regions, since it is a better deal for them, while we want a geographically diverse team.
- Team members in high-wage regions having much less discretionary income than ones in low-wage countries with the same role.
- Team members in low-wage regions being in golden handcuffs and sticking around because of the compensation even when they are unhappy, we believe that it is healthy for the company when unhappy people leave.
- If we start paying everyone the lowest wage we would not be able to attract and retain people in high-wage regions, we want the largest pool to recruit from as practical.
As much as I like a simple formula, the reality is compensation is complex and likely needs to vary based on location to be competitive.