Geo Policy Simulation Map
Design cost-of-labor-based geographic zones and remote-worker pay policy. Simulate zone structures, review population distribution and cost factors, and understand the impact on pay and employee experience before you implement.
Creates cost-of-labor-based geographic zones anchored to COL indexes and applies zone-specific pay multipliers to the national salary structure.
- Employee residency / work location
- BLS cost-of-labor indexes
- Vendor COL indexes (e.g., ERI, Mercer)
- Remote-work policy alignment
- Per-zone COL index & payment factor
- Employee & payroll distribution by zone
- Cost impact & annual savings estimate
- Headcount & policy notes by zone
Model the financial impact of this geo-zones scenario in Cost Scenarios to see annual savings and investment.
The 4-zone structure balances cost optimization with market competitiveness. Zone 1 captures the highest COL markets (30% of employees) where premiums are necessary to remain competitive. Zone 4 provides a clear default for remote workers while maintaining flexibility for exceptions.
- Are the zone definitions aligned with business talent markets?
- Is the premium for Zone 1 sufficient to attract and retain critical talent?
- Should we create sub-zones or carve-outs for specific markets?
- How will we manage employee moves between zones?
Cost-of-labor indexes vary 5-15% across vendors. Document the source, methodology, and effective date in the policy memo.
Model annual savings and investment impacts of this geo-zones scenario.
Open Cost ScenariosRemote workers default to Zone 4 (Standard) unless residency is confirmed in a higher-cost zone.
- 4 zone structure with cost-of-labor index and payment factors.
- Based on current population and remote policy assumptions.
Model this geo-zones scenario in Cost Scenarios to quantify savings, investment, and trade-offs.
Go to Cost Scenarios