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Within Company Profile, you can select the default Market Data Cut Approach to use for your company and employees. 

There are two types of Market Data Cut Approaches you can default to:

  1. Local Market Data - Match your employees to local data by factoring in each employee’s Country and Work Location.

  • Example 1: An employee’s Country is the UK and Work Location is London, Kamsa will match that employee to the UK - Inner London Market Data Cut.

  • Example 2: An employees’ Country is U.S. and Work Location is New York City, Kamsa will match that employee to the New York City Area Market Data Cut.

  1. Geographic Differential 

  • For companies with a remote workforce in the United States, we highly recommend using the three-tiered geographic differential (“geo diff”); These recommended geo diffs incorporate cost of labor and cost of living data.

  • When using the geographic differential guidelines, use a 60-mile radius within the major U.S. city areas as a guideline. For example, if an employee is located within 60 miles of San Francisco, use the US (All) - 115% Market Data Cut for that employee.

  • For companies with employees located remotely worldwide, instead of using local area market data, you can use geographic differential (“geo diff”) % based on the US national average data; These recommended geo diffs factor in the cost of living and cost of labor data by country. 

    • Example: An employee’s Country is the UK, Kamsa will match that employee to the US All - 80% market data cut (80% of the US national average).

If the majority of your workforce is located in the U.S., it’s recommended you choose the Geographic Differential as the default Market Data Cut approach. 

Suggested Geographic Differential List

If the majority of your workforce is located outside of the U.S., it’s recommended you choose the Local Market Data as the default Market Data Cut approach. 

Note: Kamsa recommends matching all U.S. based executive jobs (VP and above) to your company’s respective Revenue Cut (the target revenue range you’ve entered in the Company Profile); for example, <$50M revenue, $50M to $199M revenue, etc. 

At any point in time, you can change your Market Data Cut Approach, however, before doing so, we highly recommend exporting a Employee Data report in case you need to revert back; Then, you can refer to this report for what the prior Market Data Cuts were for each employee.

Video: Market Data Cut approach