How To Calculate New Hire Average Location Factor in Epicor | Arithmix

Calculating the new hire average location factor is an important task for any company that wants to ensure that they are paying their employees fairly based on the cost of living in different areas. This factor takes into account the differences in the cost of living between different locations and adjusts salaries accordingly. In this article, we will discuss what the new hire average location factor is, when it is valuable to calculate it, and how to calculate it.

What Is New Hire Average Location Factor?

The new hire average location factor is a calculation used to adjust salaries based on the cost of living in different areas. This factor takes into account the differences in the cost of living between different locations and adjusts salaries accordingly. For example, if the cost of living is higher in New York City than it is in a small town in the Midwest, the new hire average location factor would be higher for employees working in New York City.

The new hire average location factor is typically calculated using data from the Bureau of Labor Statistics or other sources that provide information on the cost of living in different areas. This data is used to determine the cost of living index for each location, which is then used to calculate the new hire average location factor.

When Is It Valuable To Calculate New Hire Average Location Factor?

The new hire average location factor is valuable for companies that have employees working in different locations with varying costs of living. It ensures that employees are paid fairly based on the cost of living in their area, which can help to attract and retain top talent. Additionally, it can help to reduce turnover and improve employee morale by ensuring that employees are paid fairly.

Calculating the new hire average location factor is also valuable for companies that are expanding into new areas. It can help to ensure that salaries are competitive with other companies in the area and that employees are able to maintain their standard of living.

How to Calculate New Hire Average Location Factor

To calculate the new hire average location factor, you will need to gather data on the cost of living in each location where you have employees. This data can be obtained from the Bureau of Labor Statistics or other sources that provide information on the cost of living in different areas.

Once you have gathered the data, you will need to calculate the cost of living index for each location. This is typically done by comparing the cost of a basket of goods and services in each location to the cost of the same basket of goods and services in a base location. The base location is typically the location where the company is headquartered or where the majority of its employees are located.

Once you have calculated the cost of living index for each location, you can use it to calculate the new hire average location factor. This is typically done by dividing the cost of living index for each location by the cost of living index for the base location. The resulting number is the new hire average location factor for that location.

For example, if the cost of living index for New York City is 150 and the cost of living index for the base location is 100, the new hire average location factor for New York City would be 1.5.

Overall, calculating the new hire average location factor is an important task for any company that wants to ensure that they are paying their employees fairly based on the cost of living in different areas. By taking into account the differences in the cost of living between different locations, companies can ensure that their employees are able to maintain their standard of living and are paid fairly for their work.

How Do You Calculate New Hire Average Location Factor in Epicor

Epicor itself isn’t naturally geared towards letting you calculate complex metrics like New Hire Average Location Factor. As an alternative, teams typically use products like Arithmix to import data from Epicor and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Epicor, combine it with data from other systems, and create calculations like New Hire Average Location Factor.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating New Hire Average Location Factor in Arithmix

Calculating metrics like New Hire Average Location Factor is simple in Arithmix. Once you've created your free account, you’ll be able to import your Epicor data, and use it to create natural language formulas for metrics like New Hire Average Location Factor.

Arithmix is designed to give you the power to build any calculations you want on top of your Epicor data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.