How To Calculate New Hire Location Factor in Sage | Arithmix

Calculating the new hire location factor is an important step in determining the appropriate salary for a new employee. This factor takes into account the cost of living in the employee's location and adjusts their salary accordingly. In this article, we will walk you through the steps of calculating the new hire location factor in Sage.

What Is New Hire Location Factor?

The new hire location factor is a percentage that is added to or subtracted from an employee's base salary based on the cost of living in their location. This factor is determined by comparing the cost of living in the employee's location to the cost of living in a reference location. The reference location is typically the location of the company's headquarters or the location where the majority of employees are based.

For example, if the cost of living in the employee's location is 10% higher than the cost of living in the reference location, the new hire location factor would be 10%. This means that the employee's salary would be adjusted by 10% to account for the higher cost of living.

When Is It Valuable To Calculate New Hire Location Factor?

Calculating the new hire location factor is valuable in situations where the company has employees located in different regions with varying costs of living. This factor ensures that employees are paid a fair and competitive salary based on the cost of living in their location.

Additionally, the new hire location factor is useful when hiring new employees who are located in a different region than the company's headquarters or primary location. By adjusting the employee's salary based on the cost of living in their location, the company can ensure that the employee is being paid a fair and competitive salary.

Overall, calculating the new hire location factor is an important step in ensuring that employees are being paid a fair and competitive salary based on the cost of living in their location. By following the steps outlined in this article, you can easily calculate the new hire location factor in Sage and ensure that your employees are being compensated appropriately.

How Do You Calculate New Hire Location Factor in Sage

Sage itself isn’t naturally geared towards letting you calculate complex metrics like New Hire Location Factor. As an alternative, teams typically use products like Arithmix to import data from Sage 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 Sage, combine it with data from other systems, and create calculations like New Hire 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 Location Factor in Arithmix

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

Arithmix is designed to give you the power to build any calculations you want on top of your Sage 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.