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Compensation by geography

Question
Should I pay the same rate to employees in different areas of the country? 
Answer
The short answer is, probably. The two most important factors in pay variation by geography are:

1. Availability of qualified workers in a certain geography.

2. Cost of living. For example, the cost of housing in New York City will be much higher than in rural New Mexico. 
Brain Trust contributor: Author of Improving Performance Results
Related Categories: Human Resources, Management
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