Samir GuptaCEP, CBS
Compensation Consultant, Fairlead Shipping
Accepted answer
Use the element the local market trades on, and stop trying to make countries comparable to each other through one definition. In India we build ranges on fixed cost to company, which is everything guaranteed including employer retirement contributions, because that is the figure in every offer letter and every survey. In Mexico ranges are on monthly base, and we publish a standard multiplier showing guaranteed annual cash, about 14.6 monthly salaries under our benefits design.
For cross-country comparison managers get one extra column, annual guaranteed cash in local currency and in group currency at constant rates. Compa-ratio is always calculated against the local reference element and nothing else.
